NIBA Journal

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

March 20, 2015

Housekeeping, Reminders, and Updates

Securities and Exchange Commission Investment Advisers registered with the Securities and Exchange Commission (“SEC”) and state securities authorities are required to file an annual updating amendment to the Form ADV (“Annual Update”). Investment advisers are required to file the Annual Update by March 31st, if their fiscal year ends December 31st, so that the amendment is submitted within ninety (90) days of the fiscal year end. For investment advisers with a fiscal year end in a month other than December, the Annual Update must be filed within ninety (90) days of their fiscal year end. The Form ADV is submitted and updated using the Financial Industry Regulatory Authority’s (“FINRA”) Investment Adviser Registration Depository (“IARD”) system. A fee is charged for filing an Annual Update to the Form ADV. The Annual Update fee is determined by the amount of regulatory assets under management. The fee ranges from $40 to $225. Prior...

FinTech Exchange | April 23, 2015

On April 23, the inaugural FinTech Exchange, brought to you by Barchart OnDemand, in association with FinTEx Chicago, will take place in Chicago. Registration for this new, half-day event is limited to the first 400 attendees, so be sure to register early to save your seat! You will have the opportunity to hear from over 20 leaders in Financial Technology innovation, specific to Financial Markets & Trading. April 23 at 1pm Feinberg Theatre, Venue SIX10 - Chicago *For more information and to register, visit: www.FinTechChicago.com Topics will include: Cloud Computing Trading Software Big Data Analytics Algo Trading High-Speed Networks Crowdsourced Market Data Cognitive Computing Mobile Technologies and more Onstage, "TED Talks" style presentations will include: IBM Watson, Amazon Web Services and CME Group Followed by Lightning Round presentations, featuring: Trading Technologies, Orc, CQG, Estimize, Eurex, Gate 39 Media, QuantGo, Anova Technologies, Social Market Analytics, OptionsCity, Tradier, Markets Tech, Vertex Analytics...

The Importance of Integrated Marketing in the Brokerage (or Any) Business

The Importance of Integrated Marketing in the Brokerage (or Any) Business Whether you’re a fan of the Kardashian family or not, you’ve gotta give one thing to them – they know how to market, and how to turn their name into a brand with a consistent integrated effect. Not everyone knows how to do that intuitively, but there are actually many things you can do – some quite easy – to make your brokerage recognizable to your prospect base. First, and foremost, make sure that everything you are doing that has to do with any form of firm communication has a SIMILAR LOOK AND FEEL. So let’s start with some basics and go from there. FIRM LOGO – Do you have one? If not, you can create one yourself or have one custom made for under $100, if you’re not already working with an agency or graphic designer. Simply do...

2014 Commodities in Review

2014 had its share of commodity headlines. With the year now completed, this is a good opportunity to review the previous year of the commodity markets. There was something for everyone as some commodity markets rallied, but many commodity markets declined in 2014. Several of the markets experienced price lows not seen in several years. The last several months of 2014 will definitely be known for falling oil prices as the topic found itself constantly in the headlines and in the conversation of the business, economic and political news. Besides energy, the metals and grain sectors made significant lows. One of the largest commodity moves in 2014 occurred in the rally of the coffee market. The meats sector made new highs last year. To see full article click here Mark Shore Shore Capital Management LLC

By NIBARead article

March 20, 2015

4 min read

Ask the NFA

As your industry advocate, the NIBA provides many services which help your business stay in compliance with NFA regulations. "Ask the NFA," is the way you can ask questions about those regulations and compliance requirements without having to call NFA directly. Just email us at nfacomments@theniba.com and we will get the answers for you. Please keep in mind the purpose of this contact is to keep the lines of communication between NFA and NIBA members open, not to fix any specific individual concerns. This month's questions were selected from those submitted by NIBA members. The answers were supplied by NFA staff. My Introducing Broker is approaching the $5 million aggregate gross revenue threshold that would require my firm to tape record oral communications as required by CFTC Regulation 1.35(a). Has there been any discussion on changing this regulation? When the CFTC amended Regulation 1.35 in 2012, it determined to exclude...

By NIBARead article

March 20, 2015

8 min read

CFTC/NFA/CME Regulatory Updates

CFTC Relief Letter Concerning Quarterly Account Statements of CPOs of Funds of Funds On November 6, 2014, the Division of Swap Dealer and Intermediary Oversight (the “Division”) of the Commodity Futures Trading Commission (“CFTC”) issued CFTC Letter No. 14-142 (“Letter 14-142”). Letter 14-142 grants exemptive relief to two commodity pool operators (namely, the applicant “CPOs”) from the 30-day period for distribution of quarterly statements to participants under CFTC Rule 4.7(b)(2). In order to receive such relief, the CPOs would instead provide the information required under CFTC Rule 4.7(b)(2) to participants on a monthly basis within 45 days of the month end. The CPOs requested such relief because the underlying investee pools (the “Investee Pools”) oftentimes do not distribute their reports to the CPOs’ pools (the “Investor Pools”) until the last few days of the 30-day period. Further, the Investor Pools also invest in Investee Pools that are not subject to...

By NIBARead article

March 19, 2015

1 min read

FinCEN issues an advisory on the FATF-identified jurisdictions with AML/CFT deficiencies

On March 16, 2015, the Financial Crimes Enforcement Network (FinCEN) issued an advisory announcing that the Financial Action Task Force (FATF) had updated its list of jurisdictions with strategic AML/CFT deficiencies. NFA Member FCMs and IBs should review this advisory to ensure that their AML programs have the most current information on FATF-identified jurisdictions with AML/CFT deficiencies and revise their AML programs accordingly. A copy of the advisory is available on FinCEN's website.

Arditti Summer Research Grant Program

The Arditti Center for Risk Management at DePaul University is pleased to announce that it is now accepting proposals for its 2015 Summer Research Grant Program. The program's goal is to encourage practical and innovative research in the field of risk management. In order to promote the Center's research agenda and continue the Arditti legacy, the Center will provide summer funding for two research proposals that have a blend of theoretical and empirical applications. Proposals should be sent as one packet, and contain all three of the following materials: a cover page, a description of the proposal (at most ten pages), and the applicant’s current curriculum vitae. The Arditti Center Research Grant Committee will select a candidate whose proposal most aligns with the Center’s mission of rigorous, practical, and innovative research. The proposal and the curriculum vitae will be the two main sources of information used to evaluate the significance...

Housekeeping, Reminders and Updates

NATIONAL FUTURES ASSOCIATION Commodity Pool Operators The National Futures Association (“NFA”) has modified the EasyFile system for the annual pool financial statements submitted by commodity pool operators (“CPOs”). The NFA announced the changes to the annual pool financial statements in the February 10th Notice to Members, Notice I-15-09. Changes to the annual pool financial statements are effective for financial statements dated after November 29, 2014. EasyFile has been updated to now include a new Cover Page for each pool operated by the CPO. The pool Cover Page includes questions regarding whether the annual report is audited. Additional questions will be required if the CPO Member indicates that the annual report is not audited. The NFA has also added supplemental questions concerning the structure of the reporting pool. The annual pool financial statements are part of the Annual Report that CPO Members are required to distribute to pool participants within 90...

By NIBARead article

February 25, 2015

2 min read

"Ask NFA" Question of the Month

I was recently examined by NFA. It appeared like the examiner's exam plan "play book" that did not completely fit my business. Please describe how NFA's examination programs are structured. Specifically, are examination programs designed to review the unique aspects for the different registration types (i.e. FCMs, RFEDs, IBs, CTA and CPOs)? Yes. NFA examination programs are designed to allow for focused examinations of the different registrant types. Additionally, NFA plans each exam so that it's tailored to the unique business operations and risks of the Member. No two Members' businesses are exactly alike – even Members within the same registration category. As a result, no two NFA examination plans are exactly alike. During examination planning and preparation, examiners try to learn as much about the Member and its business operations as possible so that the examination is designed to test areas of risk applicable to that particular firm. The...

By NIBARead article

Page 64