NIBA - Celebrating 35 Years

NIBA Journal

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

Panel Summary-Top 5 Questions
4 min read

Panel Summary-Top 5 Questions

Michael Coglianese had the pleasure of moderating a Panel of experts at the NIBA Conference. Mike was impressed by the answers as well as the insight of the questions from the audience. Here are some of the questions summarized below: Why should IRAs be important to the Business of an Introducing Broker? First, the managed futures industry is important to the alternative investment space, giving individual investors another avenue to diversity and protect their portfolio. There are $7.3 Trillion in IRA assets as of 2014. IRAs are investment accounts that allow people particular tax benefits. Individuals need options to help protect their portfolios and the industry needs to help educate people on the different options. What is the process of a client using IRA Funds to invest in a managed futures product? To keep things simple, there is generally a 3 step process for a client using an IRA elsewhere...

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Ownership and Control Reporting ("OCR")
2 min read

Ownership and Control Reporting ("OCR")

The reporting deadline under the CFTC’s Ownership and Control Reporting (“OCR”) rules is September 30, 2015. Although these rules became effective in February 2015, the CFTC granted firms an extension which until September 30 (six months) to collect and report the additional information information. What to Know In November 2013, the CFTC finalized new rules for Ownership and Control Reporting (“OCR”) which significantly expand the large trader reporting requirements for U.S. FCMs and their clients under CFTC Regulation Part 17 CFR 17.01(a), 17.01(b) and 20.5 (1). What this means for customers is that your FCM is now required to collect and provide more granular information to the CFTC and other regulatory bodies regarding underlying ownership and control of customer accounts. In addition, the OCR rules also require the reporting of trading by “volume” on an intraday basis in addition to the end-of-day position reporting that has always existed. Stay Informed...

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The Best Long Term Source for Qualified Leads
Marketing
9 min read

The Best Long Term Source for Qualified Leads

Highlights and takeaways from the CopyBlogger Authority Rainmaker 2015 conference in Denver, CO. It was a useful conference focused on the full lifecycle of content marketing. I’d like to share a few takeaways with you. Focus on Creating Your Own Audience A key theme was building an owned audience. Too often, marketers rely on other platforms for audience — whether it’s a trade publication, an industry site, or a social media platform. We refer to the audiences on these platforms as “rented.” Relying on a rented audience is like building a house on rented land. Eventually, you’re going to lose the house. The same is true of renting an audience. I hear countless stories of firms that “built on rented land” only to have the deal changed. For example, in the past few years, lots of marketers, particularly in consumer-facing businesses, built out large Facebook audiences based on people who...

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Top 5 Client Questions - Answered!
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!

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CME Market Data Fees set to Increase Jan 2016
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...

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The El Nino Effect
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.

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Chairman's Letter
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...

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Cybersecurity
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...

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Ask the NFA
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...

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NIBA FCM Risk Management Series- Interactive Brokers
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?...

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