Most of the work I have been doing on the NFA board thus far has been trying to open the eyes of fellow board members and senior NFA staff to issues that affect the IB community. Issues such as no accountability following MF Global and PFG, inexperienced auditors, the inconsistent promotional material review process, the doubling up of AML responsibilities between the IB and FCM, and more.
Unfortunately, the IB is almost an afterthought with everything else going on, from the integration of swaps to implementing the BRG report recommendations to improving customer protections. But there are those willing to listen, and I believe progress (however slow) is being made.
To make more progress, however – we need to be louder as an IB community. The general responses I have gotten in my interactions thus far have been ones of doubt, with the usual response something along the lines of “I don’t see that as a problem”. We need to have the issues we care about come from more than just my one voice, and bring these issues to the forefront so those in charge do see it as a problem. There is no group like the FIA or MFA directly lobbying for the interests of IBs, we’re going to have to do it on our own. So, what does the IB rep to the NFA board do for IBs? Not a whole lot without a lot of IBs screaming that they are having problems too. Let’s work to get louder!
About the Author
Jeff Malec, CAIA is the CEO and a Founding Partner of Attain Capital, an IIB in Chicago, IL. A veteran of the futures industry since 1997, he co-founded Attain Capital in 2002. He holds the Chartered Alternative Investment Association designation and has authored numerous white papers focused on managed futures. Jeff is the current IIB representative on the NFA Board of Directors. Reach him at jmalec@attaincapital.com with your comments and suggestions for the September NIBA meeting.
