NIBA - Celebrating 35 Years

NIBA Journal

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

NFA Board of Directors CTA/CPO Candidate Position Paper-Roe/Koutoulas
8 min read

NFA Board of Directors CTA/CPO Candidate Position Paper-Roe/Koutoulas

Fellow CTA/CPO NFA Members: We write to ask you to cast your vote for us in the upcoming election for Board of Directors of the National Futures Association. While Board confidentiality rules limit us somewhat in what we can disclose in terms of our tenure at the Board level, we can honestly say that we have shown the same zeal for representing your interests as we did in our pro bono representation of thousands of MF Global and PFG bankruptcy victims, and will continue to do so once re-elected. Since our election, we have continued standing up for the industry, especially for CTAs and CPOs that struggle to deal with ever-increasing and changing regulation. If you deem us worthy of second terms, we will continue to work hard to balance customer protections with regulatory efficiency and reduce unnecessary or burdensome regulations that benefit no one. Why This Election Is Important...

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NFA Board of Directors IIB Candidate Position Paper-Malec
3 min read

NFA Board of Directors IIB Candidate Position Paper-Malec

I believe individual investors and the small to midsize brokers & firms that service them are an important part of this industry, and that we need someone from such a firm to help look out for this integral segment of a futures industry increasingly dominated by the exchanges and big banks. I also believe there is more to be done following the PFG and MF Global scandals, no matter how difficult or long it takes to bring about that change. The issues I will continue to support on the NFA Board include: Better Staffing Standards for Audit Teams Better Customer Protections from FCM failures A more ‘Pro-Business’ NFA Better Promotional Material Review Easier Online systems for Filings Relaxed Net Cap Requirements More Transparency at the NFA Board & Greater Staff Accountability Opposition to CME data fees and CFTC Phone Taping Requirements No CTA/CPO Net Cap Requirement See more at: http://bit.ly/1wdyW2t...

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NFA Board of Directors IIB Candidate Position Paper-Burke
5 min read

NFA Board of Directors IIB Candidate Position Paper-Burke

Dear Fellow IB, This letter serves as a request for your vote for my candidacy in the upcoming election for the NFA Board of Directors Independent IB position. I am honored to be the chosen candidate from all of the IBs considered for this position, including the current incumbent. Please cast your vote because your voice and opinion in this election are important. I believe there needs to be more transparency in the NFA rule making and governing process. Those of you who know me know that I am very supportive of enhanced customer protections and regulations designed to ensure those protections. That being said, in my opinion, there are regulations, interpretations of certain regulations, and NFA IB audit processes that exist which do not increase customer protections and provide little if any benefit to our industry and the clients we serve. I believe our regulators need to be held...

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Housekeeping, Reminders and Updates--Dec 2014
Housekeeping
3 min read

Housekeeping, Reminders and Updates--Dec 2014

Notice I-14-33 On December 1st, the NFA released Notice to Members I-14-33 regarding the CFTC’s recent approval on the NFA’s Interpretive Notice entitled “NFA Compliance Rules 2-4 and 2-36: Prohibition on the Use of Certain Electronic Funding Mechanisms.” Effective January 31, 2015, the Interpretative Notice prohibits NFA Members from permitting customers to fund their futures and forex accounts with the use of a credit card or any other electronic method tied to a credit card. An example of another method tied to a credit card would be using payment facilitators such as PayPal that draw funds from credit card accounts.  The NFA explains that members may still continue to accept other methods of electronic funding, such as debit cards, which draw funds directly from a customer’s account at their designated financial institution. However, for this service to be provided, Members will have to distinguish between an electronic funding method that...

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NIBA Member of the Month: Stewart-Peterson Group, Inc.
3 min read

NIBA Member of the Month: Stewart-Peterson Group, Inc.

FIRM PROFILE Firm Name: Stewart-Peterson Group Inc. Founded: 1985 Number of Brokers: 20+ IB Status: GIB NIBA Member Since: Its inception Address (City, State): West Bend, Wisconsin Number of Branch Offices: 6 Website: www.stewartpetersongroup.com NFA Registration Number: 0185491 About the Firm: How did you get started? Do you provide additional services besides brokerage? The founder of Stewart-Peterson Group, Scott Stewart, has a passion for agriculture, and wanted to do what he could to help producers in their marketing.   Stewart-Peterson provides services to producers that help them make impactful pricing decisions through one-on-one relationships and newsletters. What are the biggest challenges your clients face today, and how do you help them? The biggest challenge is the temptation to get caught up in the day-to-day events that move the market, causing one to lose focus on the bigger picture.  This causes one to be reactive to events and make pricing decisions after the market move is over.  We help by...

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Ask the NFA
3 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. Question: May an NFA Member pay 3rd-party marketers or unregistered person for customer referrals? Answer: In certain circumstances an NFA Member may be permitted to pay a 3rd-party marketer, unregistered entity or an unregistered person (collectively, "unregistered person") a one-time referral fee for customer referrals. However, the NFA Member...

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NFA Board of Directors CTA/CPO Candidate Position Paper-Berbeco
3 min read

NFA Board of Directors CTA/CPO Candidate Position Paper-Berbeco

Let George Do It! For more than 30 years the NFA has developed programs that safeguard market integrity, protect investors. At times our organization has been visionary in its pursuit of appropriate regulations and services. As your new Board Member, I endeavor to maintain and enhance this effort. Certainly the confidence of investors is critical to the success and growth of our markets. The most effective is to create and maintain the highest levels of integrity of all market participants. • Vision I have served on many profit and nonprofit boards, from corporate endeavors, to college, and philanthropic organizations. As an effective board member, I have joined others in creating the appropriate strategies and environment for the betterment of the organization. I believe it is the essential duty of a board member not to micromanage an organization, but to assist in creating the correct policies and strategies. The NFA looks...

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DePaul University Cyber-Risk Conference
Member Announcements
3 min read

DePaul University Cyber-Risk Conference

“Sharing information is extremely helpful, but some large companies are now assuming that truly determined hackers cannot be kept out. So they are putting more emphasis on building resilience—the ability to bounce back fast in the event of a breach. It is essential to have well-conceived recovery plan to test it regularly, says Ed Powers of Deloitte, a consulting firm. In financial services, where a problem at one company could easily trigger a system-wide crisis, regulators are urging banks and other firms to consider resilience across markets.” —From the Cyber Security Special Report—Defending the Digital Frontier, The Economist, July 12, 2014 Target. Home Depot. The White House. The Post Office. JP Morgan Chase. The National Institutes of Health. Every day, another name gets added to the list. And these are the lucky ones who realize that they are on the list! No company or sector, private or public, is immune....

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November Chairman's Letter
Member Announcements
2 min read

November Chairman's Letter

This month marks the initiation of CFTC Regulation 1.22 implementation, often referred to as the “residual interest” rule. On November 14, the deadline for FCMs to post their own capital into customer segregated accounts which require additional margin moves to 6:00 pm ET on the settlement date. Obviously, this affects the deadline for your customers to increase their own funds. This past July and at our annual member meeting in September, NIBA presented several workshops explaining the requirements of this rule and its possible effects on your customer and FCM relationships. Please contact your FCM directly if you have questions, as each of them has issued specific protocol for compliance. The CFTC has also issued an Interpretative Letter stating that an FCM may credit a customer’s futures, foreign futures and/or cleared swaps account for a margin payment upon the FCM’s initiation of a withdrawal from the customer’s bank account using...

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