NIBA - Celebrating 35 Years

NIBA Journal

Insights, analysis, and updates from the National Introducing Brokers Association

Member Announcements
1 min read

Top 5 Client Questions - Answered!

Is there one question about running your business that continues to bug you? Join us 1t 1:30PM September 24 at the NIBA Annual Members Meeting in Chicago for the "Top 5 Client Questions - Answered," a panel discussion. Sponsored by MidlandIRA, this panel is made up of five experts, each with unique knowledge of the futures industry. They will answer the #1 most asked question by their clients. Mike Coglianese, Michael Coglianese CPA, PC moderates this session. Panelists include Angelo Gibaldi, DTG Consulting, Jeff Henderson, Greenberg Traurig; Tom McCarthy, Liccar; and Brad Janitz, MidlandIRA. Register now for September 24, and hear the answer to the legal, compliance, accounting and IRA question that bugs you the most!

By NIBARead article
Member Announcements
1 min read

CME Market Data Fees set to Increase Jan 2016

CME Group market data users who had been registered prior to the company’s market data policy changes in 2013 were “grandfathered” in at a lower rate for the first year. As we approach the end of that time period, CME Group will be increasing the market data fee for all users regardless of how long you have been registered, in the markets, members, etc. We don’t want this to catch you by surprise. The data fees have become the new normal, most firms have added the increase into the cost of doing business, and moved on. Billing has been mostly efficient, and this is now just another line item on the expense side of a payout sheet. But soon, for most, that line item is going to double -- so please plan accordingly. accordingly. You can access the Q&A sheet here: http://www.cmegroup.com/market-data/distributor/files/member-netting-pay-per-user-program-faq.pdf If you have any questions or concerns, please...

By NIBARead article
Member Announcements
1 min read

The El Nino Effect

What effect is the El Nino weather pattern having on your business? NIBA members have asked for a product session at our Annual meeting. And we've got a great one! At 11:00 AM on September 24, the NIBA will present a panel discussion which touches on all markets. Moderated by Bryce Anderson, head meteorologist for DTN, Drew Moore, Risk Management Consultant for FC Stone will look at the grain markets, and Dan Basse, Preisdent, AgResource, will focus on livestock. Register now and learn how El Nino is affecting the ag and financial markets, how to interpret the effects and how to help your customers take advantage of various market opportunities. This session, sponsored by FC Stone will provide valuable insight for all IBs and CTAs -- regardless of how your customer base is made up.

By NIBARead article
Housekeeping
2 min read

Chairman's Letter

Dear Members: Lately I've been reading a lot about the "vanishing FCM." In the July issue of our newsletter, Marc Nagel wrote an excellent article on the subject. And Ginger Szala wrote an equally thoughtful piece for CTA Intelligence a few months ago. NFA records list 62 FCMs registered in late July of this year. Contrast that number with 189 registered in 2004, 130 in 2008 and 82 registered FCMs as recently as mid-2013. The rising costs of compliance and FCM capital charge changes are most often cited as the main reasons for the declining numbers. Interest income on deposits, a once reliable revenue source for firms, has not been available for several years. All this seems to be a bit of bad news, but is it really so bad for NIBA members? Even in the heyday of FCMs, only a few worked with IBs and their customers, or supported...

By NIBARead article
Trading Technology
2 min read

Cybersecurity

Cybersecurity is the #1 issue on every financial professional's mind in the fall of 2015. What risks should I be aware of? What safeguards can I put in place? What should I do if I'm breached? What will the NFA require? What will it cost? At the September 24 Annual Members Meeting in Chicago, two panels of experts will answer these questions, among others. "Cybersecurity: Before & After the Breach" will be presented at 2:30PM -- it is sponsored by NADEX. Arlene Yetnikoff, Director of Information Security at DePaul University & Lecturer at the University of Chicago, will moderate a panel discussing what cybersecurity involves, and what steps you can take to prevent a breach of customer information. This panel includes Dan Romanelli, Delta Risk; Gil Vega, CME Group and Jeffrey Hartman, 4Discovery. "Cybersecurity: What You Need to Know Now!" will be presented at 3:30PM -- it is sponsored by...

By NIBARead article
4 min read

Ask the NFA

Q: What is needed (checklist, step by step, guide, etc) to setup a non-trading 4.7 exempt CTA for a stand alone entity? A: “Selecting and Recommending CTAs - A Recommending CTA is one who recommends various trading advisors to clients (e.g., individuals, other CTAs or CPOs) but does not have any other authority regarding these trading CTAs. The recommending CTA is not required to provide its own disclosure document to clients and as such is not required to provide past performance information of the clients for which it has acted as a recommending CTA. The client should however receive the disclosure document, including past performance information, of the CTA who will actually direct or trade the client’s account. A Selecting CTA is one who has been granted authority by the client to select, hire, and fire trading CTAs for the client (e.g., individuals, other CTAs or CPOs.) A Selecting CTA...

By NIBARead article
5 min read

NIBA FCM Risk Management Series- Interactive Brokers

NIBA will be featuring a recurring article in its monthly newsletter to membership with a focus on FCM Risk Management. The article will feature a different Member FCM each month discussing their approach to risk management. The questions below are a guide and are not required to be answered, and questions can be added and/or removed as you see fit. We thank you in advance for your participation and look forward to bringing this feature to our membership. FCM Name: Interactive Brokers LLC CEO Name: Thomas Peterffy, Chairman & CEO Head of Risk Name: Thomas Frank, EVP & CIO and Jonathan Chait, COO Do you have a risk committee? Yes. If yes, who is the head of your risk committee? The IB Group Steering Committee meets weekly and addresses risk topics. It is chaired by Milan Galik, President of IB Group. If yes, what matters does your risk committee consider?...

By NIBARead article
6 min read

HOUSEKEEPING, REMINDERS AND UPDATES: AUGUST 2015

FINANCIAL CRIMES ENFORCEMENT NETWORK In an August 25, 2015, press release, the Financial Crimes Enforcement Network (“FinCEN”) announced proposed anti-money laundering (“AML”) regulations for investment advisers. FinCEN has published a Notice of Proposed Rulemaking regarding AML programs and suspicious activity report (“SAR”) requirements that would apply to certain investment advisers. The purpose of FinCEN’s proposed rule is to prescribe minimal standards for AML programs to be established by certain investment advisers and to require such investment advisers to report suspicious activity to FinCEN pursuant to the Bank Secrecy Act (“BSA”). The proposed rules would apply to Securities and Exchange Commission (“SEC”) registered investment advisers and investment advisers required to be registered with the SEC, which includes advisers to certain hedge funds, private equity funds and other private funds. The action to be taken by FinCEN in the proposed rulemaking is to address the issue of money laundering and terrorist financing...

By NIBARead article
2 min read

NFA Representative Annual Report

Introducing Broker and CTA/CPO representatives on the NFA Board of Directors will present their annual report to NIBA members on September 24 during our Annual Members Meeting. The following representatives will be present: Paul Georgy, GIB Mike Burke, IIB James Koutoulas, CTA/CPO John Roe, CTA/CPO Doug Bry & Ernest Jaffarain, CTA/CPO (invited) Each year your elected representatives to the NFA BoD report to the NIBA members on issues the NFA is working on which affect our daily business. I am moderating the panel this year, and I would like your help. Will you send me your questions for the panel? The questions can be anything from changes in registration to reporting requirements or operations of the NFA. The questions can be about issues that are currently being discussed or concerns you would like to see addressed by the NFA. This is your chance to find out what your IB &...

By NIBARead article
Member Announcements
5 min read

Perfect Competition

0 0 1 90 513 Gate 39 Media 4 1 602 14.0 Normal 0 false false false EN-US JA X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0in; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:Calibri; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} There was a time, not too long ago, when broker-dealers were perceived as providing value to their customers. They would get on the phone, chat to customers, talk about the markets, and ultimately provide the order placement mechanisms we all relied on to execute our trades. Those days are long gone. With the rise of technology and direct market execution, many broker-dealers and especially introducing brokers have been disintermediated in the trading process. Many introducing brokers specifically have been demoted to being the sales arms of larger broker-dealers, earning pennies in commissions. 0 0 1 116 666 Gate 39 Media 5 1...

By NIBARead article
Page 59