NIBA Journal

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

May 13, 2014

Housekeeping

CFTC Expedited No-Action Relief for CPO Delegation On May 12, 2014, the CFTC issued registration no-action relief on an expedited basis for CPOs who delegate certain activities to a registered CPO.  Under this streamlined approach, the delegating CPO must represent in its request letter that it satisfies the applicable criteria.  Such criteria includes, in part, representations that the delegating CPO: (1) has delegated to the designated CPO all of its investment management authority with respect to the commodity pool via a legally binding document, (2) does not participate in the solicitation of participants for the commodity pool, (3) does not manage any property of the commodity pool, (4) is not subject to a statutory disqualification, and (5) has delegated to the designated CPO the maintenance of the commodity pool’s books and records.  The delegating and designated CPOs must agree to be jointly and severally liable for any violation of the...

Tech Talk: CQG Discusses Mobile Trading Technology

The Rise of Mobile It’s no surprise that mobile device use has taken off in the era of bigger, better, faster. Once a luxury, mobile devices have proven to be a game changer for millions who rely on them to improve their lives both personally and professionally. Mobile web adoption is growing eight times faster now than it did in the 1990s and early 2000s; and surprisingly, 80% of time spent on mobile devices is inside apps (not talking or texting), according to DigitalBuzz. A third of internet users go online using mostly their phones, not desktop or laptop computers, according to Pew Research Internet Project. What’s impressive is that mobile tools are no longer a carbon copy of the desktop platform. The applications have gotten so advanced that users are accessing mobile even when not in “mobile” situations. We’re seeing mobile used in two very different ways: first, in...

By NIBARead article

April 17, 2014

5 min read

NIBA Comments to the NFA's Proposals for CTA/CPO Capital Requirements

In Re: Notice to Members I-14-03 Request for Comments - CPO/CTA Capital Requirement and Customer Protection Measures April 14, 2014 National Futures Association: The following comments regarding the above captioned Notice to Members are submitted by the National Introducing Brokers Association (NIBA). The NIBA, founded in 1991 is a membership association of Introducing Brokers (IBs), Commodity Trading Advisors (CTAs), Futures Commission Merchants FCMs) and other registered professionals who transact futures and options business primarily in, and for, the retail sector of the industry. These comments represent the opinion of our IB and CTA members only. The NFA should not impose a minimum capital requirement on CTA members. By definition, a CTA holds no funds and cannot control funds. The CTA’s client funds are held on deposit with an FCM. Since many CTA customers have a primary relationship with either an IB or FCM, that IB or FCM is monitoring the...

MF Global customers to be fully reimbursed, trustee says

Today marks the beginning of a $6.7 billion payout to the former customers of MF Global Holdings. The process is expected to take several weeks but will return all the money that is owed to the approximately 26,500 former commodities and securities customers of the failed brokerage. "Checks are going in the mail that will make all public customers of MF Global Inc. 100% whole," trustee James Giddens said in a statement. Read Full Article at FIA SmartBrief

By NIBARead article

April 3, 2014

1 min read

FinCEN Issues an Advisory on the FATF-Identified Jurisdictions with AML/CFT Deficiencies

Notice to Members I-14-09 April 2, 2014 FinCEN Issues an Advisory on the FATF-Identified Jurisdictions with AML/CFT Deficiencies On March 25, 2014, 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 anti-money laundering and counter-terrorist financing (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 through FinCEN's website.

By NIBARead article

March 28, 2014

1 min read

Peregrine Bankruptcy Trustee Settles Dispute With JPMorgan

Peregrine Financial Group Inc.’s trustee agreed to settle a dispute with JPMorgan Chase & Co. in a deal that will bring more than $15 million to creditors of the commodities firm, which filed for bankruptcy after its founder looted client accounts. Read full article at Business Week.

NFA Proposal for CTA/CPO Capital Requirements

In Re: Notice to Members I-14-03, Request for Comments - CPO/CTA Capital Requirement and Customer Protection Measures For the past seven years, NIBA membership has been open to CTAs and CPOs. Nearly one-quarter of current members are registered as CTAs - - either as their primary registration or in addition to the IB registration. We count among them established CTAs, as well as emerging managers. During the past couple of weeks we have had numerous comments from members regarding the NFA proposal for capital requirements, and additional customer protection measures for CPOs and CTAs. Virtually 100 percent of the comments we received to date oppose the minimum capital proposal for CTAs. Even IIBs who currently operate under a minimum capital requirement regulation, oppose the NFA’s proposal. At this time, there are not enough comments/suggests regarding CPO capital requirements/alternative customer protection measures for NIBA to take an Association position. The most...

Chairman Letter for March 2014

Dear Members - Here’s a partial list of all the events NIBA will be involved in during the next thirty days: March 25: Risk Management Breakfast Meeting at Arditti Center, DePaul University in Chicago April 3: CFTC Roundtable in Washington DC for end users, including discussion of issues surrounding Recording Requirement 1.35 April 15: NIBA Opinion Letter Regarding the NFA Proposed CPO/CTA Capital Requirements May 1: NIBA Spring Member Meeting at the New York Athletic Club in New York City. Yes - this is a typical schedule! Every month the NIBA participates in or presents at least four or five activities which directly affect our members‘ business. Whether it is submitting an opinion on regulation or providing an educational program, NIBA members have a voice. Each of the four dates and events for the upcoming month are more fully discussed in this newsletter. Please contribute to the discussion by sending...

By NIBARead article

March 24, 2014

13 min read

Ten Yard Capital, LLC | NIBA Member Spotlight

Firm Name: Ten Yard Capital, LLC Principal: Adrian V. Fleisher, afleisher@tenyardcapital.com  Founded: May 2010, NFA Member Approval Dec 2011, Started Managing Monies Aug 2012  Number of Brokers: 1  NIBA Member Since: 2013  Address: 21381 Hawthorne Lane, Kildeer, IL  Web: www.tenyardcapital.com About the Firm: How did you get started? Do you provide additional services besides brokerage? From 2008 to 2010, I was employed with a firm as VP of Operations. There were three of us running the business. One partner was the face of the firm, the other partner managed monies. I was brought in to run the day to day operations thereby allowing the two partners to focus on their specific disciplines. As such, I spent a lot of time working on the nitty-gritty parts of the business. Website development, interviewing candidates, basic accounting, acting as the liaison with the NFA and our clearing firm, etc. Much of my time...

NIBA Spring Meeting, May 1 -- New York Athletic Club by Rich Strait, Conf. Committee

The NIBA spring meeting is scheduled for the afternoon of May 1, 2014 at the New York Athletic Club. The full agenda will be available on the NIBA’s website, and will include presentations on product as well as compliance. This meeting is free to all NIBA members - you can register online. NYAC dress requirements (jackets for men, no sneakers) observed. Questions or suggestions, please contact NYC Conference Committee, Rich Strait - rich@straitllc.com or Kristie Aupperle, kaupperle@advance-trading.com.

By NIBARead article

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