NIBA - Celebrating 35 Years

NIBA Journal

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

Futures Market Education and The Equity World
NIBA Briefings
2 min read

Futures Market Education and The Equity World

As the retail futures industry navigates the equity world, it’s important for everyone within the industry to focus on educating their clients and prospects about futures trading. We know that people trade futures markets for a variety of reasons and helping your clients understand what the markets may offer them is one of the first steps to take. Market education, along with product awareness, is the foundation that provides the new or maturing futures trader with the greatest chance for success. Once a customer understands the basics of futures, it becomes easier to build awareness of the benefits. Efficiency in capital use and seamless access across different asset classes are concepts that can generate market interest and growth. One of the most important questions I received while on this panel was, “As we grow our business, is it Equities vs. Futures or Equities with Futures?” At CME Group we believe...

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AML Discussion at the 2013 NIBA Conference
NIBA Briefings
4 min read

AML Discussion at the 2013 NIBA Conference

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:10.0pt; mso-para-margin-left:0in; line-height:115%; 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;} The NIBA conference held in Chicago last month offered a wide variety of informational sessions applicable to Introducing Brokers’ business. My compliments to Melinda Schramm and the NIBA board for assembling a conference schedule that covered topics of importance to the IB community, many of which were very timely, and provided an essential understanding of certain issues that currently impact IB business. I participated on the panel discussion on Anti-Money Laundering (“AML”) with attorney Neal Stevens, who provided a comprehensive overview of AML requirements, and NFA Associate Director, Valerie O’Malley, who discussed common deficiencies found in NFA reviews and their consequences. My focus was on the operational aspects of effective AML procedures and relevant...

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AML Guidance for IBs Regarding Unusual Situations
3 min read

AML Guidance for IBs Regarding Unusual Situations

CFTC, FinCEN and Treasury have provided guidance in a Q&A format regarding certain unique circumstances relating to IBs and the Customer Identification Program (CIP). These include: New Co-Owner of Account: If a person becomes a co-owner of an existing account, then the new co-owner is a customer to which the IB must perform the CIP. Rural Customer Without Address: If a customer lives in a rural area and does not have a residential or business address, then the IB may get the number on a roadside mailbox on a route route. A route route is a description of the approximate area where the customer is located. If no such number exists and there is no residential or business address for next of kin or another contact individual then a description of the customer's physical location suffices. US Customer Without TIN: If a US customer does not have a TIN, the...

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John Walsh: Founder of the Walsh Agency Passes Away
Member Announcements
2 min read

John Walsh: Founder of the Walsh Agency Passes Away

When brokers mention the Walsh Agency it's usually followed by a John Walsh story. Everyone I have spoken with in the past few months have told me what a character he was. It is with a heavy heart that I inform you that John passed away earlier this year. He was lucky, he played golf, and bridge on Wednesday, got sick on Thursday, and never woke up. His faith was very strong, and I have no doubt John is making people laugh in heaven. Here is a link to his obituary. John started the Walsh Agency over 43 years ago, and he was passionate about ethics, and anti-money laundering. He truly felt it was his responsibly to keep brokers, and IBs informed. He was a natural teacher, and his knowledge, and understanding of the material made him a valuable resource to many of us. I was very lucky to call...

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MF Global Trustee Plans to Return More Customer Funds
MF Global Updates
1 min read

MF Global Trustee Plans to Return More Customer Funds

MF Global trustee James Giddens has asked a bankruptcy court for permission to return the remaining money owed to the firm's customers who traded on domestic exchanges. "The relief sought in this motion, if granted, should allow every one of the more than 26,000 former customers of MFGI with allowed net equity claims to be paid in full before the end of the calendar year," a court filing said. To read the full article, go to www.reuters.com

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Customers testify about CFTC agriculture-futures rules
1 min read

Customers testify about CFTC agriculture-futures rules

Futures-market users and regulators testified before the House Agriculture Subcommittee on General Farm Commodities and Risk Management that some parts of a proposal from the Commodity Futures Trading Commission would hurt members of the agricultural community. "We must examine if the costs outweigh the benefits," said subcommittee Chairman Mike Conaway, R-Texas. "Farmers and ranchers who are supposed to be protected by this rule have expressed deep skepticism of it, which I share." To view the full article go to www.agri-pulse.com

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MF Global Trustee Issues Letters to IBs Threatening to Claw Back Commission Payments Received Within 90 Days of Bankruptcy Filing
MF Global Updates
2 min read

MF Global Trustee Issues Letters to IBs Threatening to Claw Back Commission Payments Received Within 90 Days of Bankruptcy Filing

The SIPA trustee of collapsed futures broker MF Global, Inc. (“MFGI”) recently issued letters to many IBs asserting that the trustee may file preference actions to recover commission payments made by MFGI to the IBs within 90 days of MFGI’s October 31, 2011 bankruptcy filing. The letter indicates that IBs should contact an attorney in the trustee’s office by September 20, 2013 to discuss the issue. Depending on individual IBs’ particular facts and circumstances, there are a number of defenses and arguments that the IBs may be able to assert to such preference actions. IBs should analyze how these defenses and arguments apply to their facts and circumstances and then communicate with the trustee’s office with the aim of getting the trustee to agree either that no amount is subject to a preference action or that the trustee will settle for a mutually acceptable amount. If individual disputes cannot be...

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Selling Commodities in an Equities Market: A Panel Discussion Preview
Marketing
3 min read

Selling Commodities in an Equities Market: A Panel Discussion Preview

It’s a tough time to be a futures broker. Despite surviving the 1-2 punch of MF Global and PFG, markets have been difficult to predict and volumes haven’t fully bounced back. In managed futures, CTAs as a group have under-performed and while traditional wisdom says to invest in a manager during a draw down—it’s a tough sale even for the most experienced investor. While generally speaking, the rise of the stock market is good for our economy and a sign of a market rebound, it makes selling futures a harder proposition when low-cost, less-complex investment vehicles such as Stock Index ETFs are performing well. Combine this with the fact that generating leads is harder, more expensive, and more work than before…what’s a broker to do? I have the privilege of moderating an exciting panel discussion “Selling Commodities in an Equities Market” with some great fellow panelists including Daniel Ryba, Director...

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NFA recommends vigilance in the face of growing cyber threats
1 min read

NFA recommends vigilance in the face of growing cyber threats

It goes without saying that the safety of customer funds and information is critical in the futures industry. In recent years, NFA has taken significant steps to enhance customer protection. However, there are other serious threats to customer funds and personal information that aren't as outwardly visible or frequently publicly discussed: cyber attacks. Read the full article here on the National Futures Association's website.

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