NIBA Journal

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

July 10, 2012

PFGBest Brokers: Make Sure You Have Ownership of Your Domain Name

As we go through the failure of PFGBest less than a year after MF Global, I wanted to alert brokers and GIBs in particular, to make sure you have ownership and access to your domain name. Being able to transfer your domain name in an emergency can help keep your email and website hosting up and running in the event of a crisis such as MF Global and PFGBest. Why does an FCM have control of my domain name? In the past, many FCMs tried to provide website and email hosting and support as a benefit to doing business with that FCM. In doing so, the FCM registered the domain name on behalf of the brokers. Unless ownership of the domain was transferred directly to the broker, it typically stayed registered to the person registering the domain name, typically the FCM. What is the impact of losing control of my...

MF Global payouts could take six years

Source: cattlenetwork.com The complex pursuit of the missing $1.6 billion in segregated customer funds lost by bankrupt broker MF Global could take up to six years to sort out, with full payback to customers unlikely, a top futures industry official said. The Opinions expressed are the opinions of the author. The opinions, the trading styles, trading information and trading programs are not endorsed by the NIBA, but are the individual opinions, styles, information and programs of the author.

New Filing Requirements - Segregated Investment Detail Reports

Notice to Members I-12-11 June 27, 2012 New Filing Requirements - Segregated Investment Detail Reports Pursuant to NFA Financial Requirements Section 8, effective July 2, 2012, all NFA Member FCMs that hold customer futures and option segregated funds and/or foreign futures and foreign options secured amount funds will be required to file the Segregated Investment Detail Report (SIDR) as of the 15th (or the following business day if the 15th falls on a weekend) and the last business day of each month. The report is due by 11:59 P.M. Eastern time on the business day following the 15th and last business day of each month. The first SIDR under this requirement will report the information as of close of business on July 16, 2012 and must be filed by 11:59 P.M. Eastern time on July 17, 2012. SIDR requires an FCM to provide the following information as of the reporting...

Guidance to NFA Member CPOs and CTAs that Operate or Advise Pools Pursuant to an Exemption under CFTC Regulation 4.13(a)(4)

Notice to Members I-12-09 June 22, 2012 Guidance to NFA Member CPOs and CTAs that Operate or Advise Pools Pursuant to an Exemption under CFTC Regulation 4.13(a)(4) On February 24, 2012, the CFTC issued final rules amending CFTC Part 4 Regulations to rescind the exemption from registration available to CPOs offering certain qualifying pools under CFTC Regulation 4.13(a)(4). Although Member CPOs that currently operate a pool(s) pursuant to a 4.13(a)(4) exemption may continue to operate the pool pursuant to that exemption until December 31, 2012, those CPOs must determine whether the 4.13(a)(4) exempt pool qualifies for an exemption from registration under CFTC Regulation 4.13(a)(3) or whether the CPO will become subject to CFTC Part 4 reporting and disclosure requirements for that pool subsequent to December 31, 2012. Similarly, any CTA that advises a 4.13(a)(4) exempt pool pursuant to an exemption under CFTC Regulation 4.14(a)(8)(D) may only continue to advise that...

Trustee Report Apparently Indicates Trustee Close to Recovering Sufficient Assets to Make Non-Insider Customers Whole if CFTC Rules Upheld

On June 4, 2012, the MF Global Inc. ("MFGI") trustee released his first six month report on the SIPA liquidation of MFGI. In the report, the trustee detailed recoveries the trustee has already achieved and also prospective recoveries on behalf of both MFGI's proprietary accounts and the segregated asset pools for MFGI's former customers. A CFTC rule provides that in the event of shortfall an FCM's firm assets go to make up the shortfall, this would mean that MFGI's proprietary assets would be allocated to make up any extant shortfalls in the segregated asset pools of MFGI's former customers. Creditors will argue that this rule is invalid and a court decision will be necessary to determine if it is upheld. An analysis of the trustee's report seems to indicate that he is close to recovering sufficient assets to make up the current shortfall and thus make all public customers whole...

Chairman's Message | June 2012

Dear Members- The Answer: Communication, Communication, Communication. The Question: What’s the most important benefit of your NIBA Membership? The NIBA’s mission is to keep communication channels open between members, and between members and other industry participants, including regulators. The dialogue helps keep you informed and assures that your opinions are heard. This what the Association is doing this month: May 30 - NIBA filed a request for an extension of time to the CFTC for implementation and enforcement of Rule 1.71 - Conflict of Interest June 1 - CFTC granted NIBA’s request and extended enforcement for all IBs and FCMs for 60 days. (Request and CFTC letter found in this month's Newsletter.) June 2 - General Creditor Claims filing deadline in the MF Global Bankruptcy. June 5 - NIBA/CME Joint Webinar with Bryan Durkin, CEO of the CME Group as Guest Speaker and Mike Burke, Secretary of the NIBA as...

An Economic Overview & Outlook: Kansas City and the Nation | Summer Conference Presentation Summary

Kelly Edmiston will present “Economic Conditions in the U.S. and Kansas City Region.” The presentation will begin with a discussion of recent output in the U.S. economy and provide a near-term outlook based on publicly available Federal Reserve projections and a consensus of leading forecasters across the country. The discussion will then turn to a detailed discussion of labor market trends and outlook in both the U.S. as a whole and in the Kansas City area specifically. A number of interesting trends are shaping the labor market outlook, and several of these are rather unique to the recent recession, aptly termed the “Great Recession” by many, and its anemic recovery. The unemployment rate will be discussed, but also the inability of the headline unemployment rate to fully capture the state of the labor market. Alternative indicators will then be presented that Edmiston argues provide a more complete labor market picture....

New SAR Filing Requirements

The Financial Crimes Enforcement Network (FinCEN) recently made some changes to its Suspicious Activity Report (SAR) filing requirements that will likely impact an IB’s AML program. Specifically, beginning July 1, 2012, any financial institution, including an IB, filing a SAR must do so electronically through FinCEN’s BSA E-Filing System. According to FinCEN, E-Filing will enhance the quality of FinCEN’s electronic data, improve its capabilities in supporting law enforcement and increase cost efficiencies. There is no charge for using the BSA E-Filing System. FinCEN has indicated, however, that firms that file a SAR in paper form after the July 1 deadline may be subject to a civil monetary penalty of up to $500 for each improperly filed form. In order to file a SAR through FinCEN’s BSA E-Filing System, an IB must be enrolled as a BSA E-filer. Information on how to enroll, including an E-Filing webinar, is available at http://www.fincen.gov/forms/e-filing/index.html....

Register for Kansas City Marketing & Sales Event Now!

The Summer NIBA Meeting, co-sponsored by the Kansas City Board of Trade is scheduled for Thursday, June 21 at the KCBT. Coffee and registration begins at 1:15pm. Business sessions begin at 2pm. A networking/cocktail reception will follow immediately. Program details are found here, and include 3 great presentations by 4 great speakers - Bryce Anderson | Meteorist for Telvent DTN, Kelly Edmiston | Sr. Economist for the Federal Reserve Board, KC, Jennifer Sunu | Director, Audits & Investigations, NFA and Neal Stevens | Attorney, Schuyler, Roche & Crisham Early registration for NIBA and KCBT Board Members is complimentary. After Monday, June 18 there is a $25.00 late charge fee for everyone including walk-ins. For more information, contact Melinda Schramm, melinda@futuresrep.com. » REGISTER NOW

Webinar at the CME | Darin Newsom, Telvent DTN Senior Analyst

Date: Tuesday, 26 June 2012 Time: 2:00pm CT Location: Attend Online or In person at CME Group Visitor's Center Theatre, 141 W. Jackson Blvd., 5th Floor, Chicago Telvent DTN Senior Analyst Darin Newsom will take a look at the Prospective Plantings report along with Quarterly Grain Stocks numbers, evaluating what the figures might mean for the markets going forward. Darin can provide analytical insight and commentary on all commodity markets, as well as the international and national events that move them. His commentary has been featured on CNBC's Morning Call and The Wall Street Journal Online MarketBeat. » REGISTER NOW

By NIBARead article

Page 95

NIBA Journal

PFGBest Brokers: Make Sure You Have Ownership of Your Domain Name

MF Global payouts could take six years

New Filing Requirements - Segregated Investment Detail Reports

Guidance to NFA Member CPOs and CTAs that Operate or Advise Pools Pursuant to an Exemption under CFTC Regulation 4.13(a)(4)

Trustee Report Apparently Indicates Trustee Close to Recovering Sufficient Assets to Make Non-Insider Customers Whole if CFTC Rules Upheld

Chairman's Message | June 2012

An Economic Overview &amp; Outlook: Kansas City and the Nation | Summer Conference Presentation Summary

New SAR Filing Requirements

Register for Kansas City Marketing &amp; Sales Event Now!

Webinar at the CME | Darin Newsom, Telvent DTN Senior Analyst

An Economic Overview & Outlook: Kansas City and the Nation | Summer Conference Presentation Summary

Register for Kansas City Marketing & Sales Event Now!