Dear Members-
Well, get ready for some good news and some not so good news.
Good news #1. MF Global commodity customers are poised to get 100% back. On November 4, Trustee Giddens received approval from the MFG bankruptcy court for a plan that will repay customers in full. Neal Stevens’ article helps put this in perspective.
Good news #2. The CFTC received the go-ahead from a federal court for it’s lawsuit against U.S. Bank N.A, the bank which held Peregrine Financial Group’s segregated funds. That suit alleges the bank treated the account as if it were Peregrine’s own.
Now the not so great news #1. The new Recording Requirement compliance deadline looms: December 21, 2013, unless CFTC postpones or extends the time to comply. Jeff Kopiwoda has written a comprehensive update to his September Membership Meeting presentation.
Not so good news #2. The CFTC approved a rule which will change how FCMs calculate the residual interest they must maintain in customer accounts to cover margin deficits. The CFTC will phase in the rule over a five year period, ultimately requiring that brokers hold the necessary amount ‘early in the morning when the client’s trades settle.’ The NIBA went on record along with most other industry associations, opposing the rule. We are of the opinion that our clients will ultimately pay the price for this regulation because of increased trading costs resulting in depressed trading activity.
We’ll keep you updated on all the news - good and not so good - through this newsletter, member meetings and other member communications.
Each panelist at the September Membership Meeting was asked to update his/her presentation at that event. Their responses are included in this newsletter. All of the authors invite you to contact him/her directly.
Also this month, our Annual Membership Campaign kicked-off. All current members can just return the renewal form mailed earlier this month or go online to update firm information. To join for the first time, please use the online form. NIBA membership continues to be a real value -- your dues include free attendance to membership meetings throughout the year and a listing in the online Broker Directory.
The NIBA Annual Election period closes November 15, 2013. Two candidates for the Board of Directors were nominated this year - Ryan Griffeth, PostRock Brokerage in Chicago and William Striker, Striker Securities, Elmhurst, IL. A huge thanks to the members rotating off: Bill Purpura, GLT Group, LLP, Wilkes Barre, PA; Kevin O’Brien, Morgan Stanley, Chicago; and, John DeMartino, FC Stone, Chicago.
Best,
Melinda Schramm, Chairman, NIBA: melinda@futuresrep.com
