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NIBA Journal

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

CFTC Consumer Outreach Update - November 2012
Marketing
1 min read

CFTC Consumer Outreach Update - November 2012

In 2010, Congress passed the Dodd-Frank Wall Street Re-form and Consumer Protec-tion Act, which states that the CFTC can fund customer education initiatives to help customers protect them-selves against fraud or other violations of the Commodity Exchange Act. In response, the CFTC established an Office of Consumer Outreach (OCO). Prior to establishing the OCO, CFTC staff re-viewed other federal agency financial education programs and budgets, and Commis-sioner Scott O’Malia con-ducted a hearing to gather insights into how to design the OCO. Read Full Article (PDF)

By NIBARead article
House report rebukes Corzine for MF Global's collapse
MF Global Updates
1 min read

House report rebukes Corzine for MF Global's collapse

The House Financial Services Subcommittee on Oversight and Investigations released a summary of a report -- expected to be released in full today -- on the collapse of MF Global Holdings. In it, Republicans say CEO Jon Corzine's decisions led to the firm's demise. "Choices made by Jon Corzine during his tenure as chairman and CEO sealed MF Global's fate," said panel Chairman Randy Neugebauer, R-Texas. Bloomberg Businessweek (11/15), Financial Times (11/14), Wall Street Journal, The (11/14), Hill, The/On the Money blog (11/14)

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NFA Announces Nominations Made by the 2012 Nominating Committee
Marketing
4 min read

NFA Announces Nominations Made by the 2012 Nominating Committee

Notice to Members I-12-26 November 9, 2012 Please Route To: Compliance/Legal Sr. Management NFA Announces Nominations Made by the 2012 Nominating Committee In accordance with NFA Bylaw 406, the Office of the Secretary has received from the 2012 Nominating Committee a list of its nominees for positions on NFA's Board of Directors and 2013 Nominating Committee. The list of nominees included with this notice shall serve as notification to NFA Members of the candidates proposed by the 2012 Nominating Committee. Other nominations may be made by petition. Article VII, Section 3(b) of NFA's Articles of Incorporation provides that: "Nominations may be made for elected FCM and LTM, IB, and CPO and CTA Director positions by: (i) Petition signed by 50 or more NFA Members* in the category for which the nomination is made (i.e., FCM and LTM, IB, and CPO and CTA); or (ii) Petition submitted by any organization or...

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NFA announces workshop to assist SDs/MSPs in the 4s documents submission and review process
Marketing
2 min read

NFA announces workshop to assist SDs/MSPs in the 4s documents submission and review process

November 6, 2012 NFA announces workshop to assist SDs/MSPs in the 4s documents submission and review process National Futures Association will hold its first in a series of workshops to assist swap dealers (SD) and major swap participants (MSP) with the registration process. This three-hour workshop, presented by NFA staff, will be held at NYMEX World Headquarters in New York on November 28. The workshop will cover the registration process starting from the filing of Form 7R to the completion of all components required to obtain a provisional registration status. NFA staff also will discuss timelines for completing each registration component; fee payment wiring instructions, including cut-off times; and other important registration-related issues. Workshop Details: Date: Wednesday, Nov. 28, 2012 Time: 1:30 to 4:30 P.M. Location: NYMEX World Headquarters World Financial Center One North End Ave. Conference Room New York, N.Y. 10282 Speakers: Jamila Piracci, VP, OTC Derivatives Greg Prusik,...

By NIBARead article
Sourcing Hidden CTA’s
Marketing
7 min read

Sourcing Hidden CTA’s

As 2012 comes to a close it’s apparent the commodity interest markets have had a tough year. We’ve continued to watch the developments of MF Global, seen Peregrine Financial Group (“PFG”) come unglued and nearly watched Knight Capital crumble after a trade error. We’ve seen commission rates continue lower, talked to clients who are uneasy about investing in our industry, and have had to deal with the many considerations of the Wall Street Reform Act (“Dodd Frank”). Yet, even with all the setbacks, the managed futures space has continued to grow; attracting interest from investors the world over. This article intends to examine several ways that your brokerage can separate itself from the pack and take advantage of the growing interest in the managed futures asset class. Differentiate Yourself As an Introducing Broker one of the things that can be presented to your customers is your expertise in the managed...

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Strait LLC | October 2012 - Focus on the Membership
Focus on the Membership
3 min read

Strait LLC | October 2012 - Focus on the Membership

Primary Markets Traded: Global Futures, Options and cleared OTC. Specializing in Metals and Energy servicing commercial and institutional/Prop client base. How did you get started? How did the firm get started? I’ve spent over 30 years in the futures and options business at various industry positions such as Marketing Director of the New York Mercantile Exchange, and the Director of Marketing for Mitsubishi FCM, Triland USA. About 3 years ago, I saw a need for a specialty futures and options firm in Miami, and opened Strait, LLC. We have New York and Chicago Operations as well as our Florida location. Does the firm provide additional services besides brokerage? Yes, we develop risk management programs, operate an inventory finance advisory and we have a special interest in the area of emerging manager development. What are the biggest challenges your clients face today? What does the firm do to help meet those...

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Chairman’s Letter - October 2012
Member Announcements
2 min read

Chairman’s Letter - October 2012

Dear Members - As Swaps Dealers began to register this month, I started thinking once again about the current state of Introducing Brokers (IBs). An IB’s role in the industry is to have direct contact with the market end-user - soliciting and servicing the customer. But what is the value of an IB to a customer? Why do customers open their accounts directly with IBs? Well, Your IB helps new investors understand the risks of the futures market. Your IB has the training that can prevent a customer from making an easily avoidable, costly mistake during the order placement process. Your IB has the experience necessary to evaluate market moves, and to spot opportunities a customer might miss. Your IB does or has access to a great deal of research, including cash markets and global situations, which customers don’t typically have. Your IB stays up to date with regulatory changes...

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Increased Financial Disclosures by FCMs for the Trading Community
Marketing
3 min read

Increased Financial Disclosures by FCMs for the Trading Community

As of September 1st, the NFA increased the financial reporting requirements for FCMs who hold customer funds pursuant to Section 16. In an effort to increase disclosure for the brokerage and investing community, the NFA’s Board of Directors decided in August to make those disclosures available on each FCM’s BASIC page. These reports should be available by November 1st. They will reflect information for each FCM as of September 30th. The NFA will be adding the three following reports for each FCM to their respective BASIC pages: The Capital Report This monthly report will be presented on a rolling 12 month basis, beginning with the initial September report. This report will include the firm’s adjusted net capital, their required net capital and their excess net capital for the most recent reporting period. The Customer Segregated Funds Report Although this is a semi-monthly report, like the Capital Report, it will be...

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MF Global Inc. Trustee Begins Processing General Creditor Claims
MF Global Updates
2 min read

MF Global Inc. Trustee Begins Processing General Creditor Claims

Many IBs have general creditor claims in the SIPA liquidation of MF Global Inc. based on commissions due to the IBs as shown on October 2011 commission runs. The deadline for filing such general claims was June 2, and the trustee reported in August that he has received $22.8 billion in total general creditor claims. The trustee's attorneys and professionals have begun processing these general creditor claims, according to an interim report filed by the trustee on October 5. The court entered an order approving processes for the trustee to object to and settle certain general creditor claims, including through omnibus objections to up to 200 claims at a time, on October 11. The trustee appears to be using these processes initially to file objections to eliminate duplicative claims, but at some point soon the trustee should begin to process IB claims for commissions. Neal R. Stevens Of Counsel nstevens@SRCattorneys.com...

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