NIBA - Celebrating 35 Years

NIBA Journal

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

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,...

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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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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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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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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 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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Marketing
1 min read

CME has deal to acquire Kansas City Board of Trade

CME Group said it is buying the Kansas City Board of Trade for $126 million in cash. The derivatives exchange said buying the bourse, its first exchange purchase in five years, is a way to expand its agricultural products. The KCBT's board selected CME over other exchanges, including BATS Global Markets and IntercontinentalExchange, sources said. The proposed deal makes the Minneapolis Grain Exchange the last independently owned agricultural exchange in the U.S. Reuters (10/17), Crain's Chicago Business/Reuters (10/17), Bloomberg Businessweek (10/17), Fox Business/Dow Jones Newswires (10/17), Reuters (10/18)

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MF Global Updates
1 min read

Vision to take over PFG accounts

By: Daniel P. Collins | Futures Magazine An agreement has been reached between Vision Financial Markets and the trustee for Peregrine Financial Group, pending court approval, that will bulk transfer up to $123 million that was part of the trustee’s planned interim distribution to Vision along with customer accounts qualifying for that distribution. Vision has agreed to pay the trustee $325,000 for the bulk transfer according to a statement on the trustee’s web site. The trustee will submit a proposed order to the Bankruptcy Court on Oct. 5, to authorize the bulk transfer. > Read the full article on the Futures Mag website.

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Marketing
2 min read

District Court Overturns CFTC Position Limit Rule

FIA Special Alert Sept. 28, 2012 District Court Overturns CFTC Position Limit Rule Today the US District Court for the District of Columbia struck down the CFTC's position limit rule, which was scheduled to go into effect on October 12, 2012. The court ruled in favor of the plaintiffs?the International Swaps and Derivatives Association and the Securities Industry and Financial Markets Association. The court found that the CFTC "fundamentally misunderstood" the relevant provisions of Dodd-Frank and rejected the CFTC's interpretation that Dodd-Frank makes the imposition of position limits "mandatory," rather than "as appropriate" to prevent excessive speculation. The court stated that the case revolved around the question of whether a plain reading of section 6a of the Commodity Exchange Act "clearly and ambiguously requires the Commission to make a finding of necessity prior to imposing position limits." Based on its reading of the statute, the court concluded, "The answer is...

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