NIBA Journal

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

December 31, 2018

Market Update: The Factors That Influenced 2018 Markets

The flattening of the yield curve, the rising dollar and hedge fund redemptions are among the factors that will eventually influence market structure. In looking back at this year’s trends, Jack Bouroudjian gives some guidance for what we should watch heading into 2019. The post Market Update: The Factors That Influenced 2018 Markets appeared first on OpenMarkets. Source: CME Open Markets - Market Update: The Factors That Influenced 2018 Markets

Market Update: December Review

As the last week of December comes to a close, Jack Bouroudjian discusses recent market moves and what to look forward into the coming year. The post Market Update: December Review appeared first on OpenMarkets. Source: CME Open Markets - Market Update: December Review

What to Watch in Energy Markets in 2019

The only certainty about global energy is that the markets will continue to surprise in 2019. The energy business has always been notorious for its ups and downs. This is even more true today when the energy landscape is evolving rapidly. The old order is changing fast as new trade routes emerge, driven by the resurgence of US energy production. That said, there are a few key trends that emerged in 2018 that are likely to set the tone for the year ahead. U.S. Oil Independence The United States was a net exporter of oil and refined products for one week in late November for the first time in 75 years. The shale revolution has seen domestic U.S. crude oil production surge to around 11.7 million barrels per day. Plentiful supplies of crude oil are also making U.S. refiners more competitive, encouraging them to boost output of refined products like...

Market Update: What’s Driving the Market?

Jack Bouroudjian discusses the factors behind today’s volatility hitting stock markets, and why we should watch the Fed and the yield curve before the end of the year. The post Market Update: What’s Driving the Market? appeared first on OpenMarkets. Source: CME Open Markets - Market Update: What’s Driving the Market?

What Makes A Bear Market?

The most commonly held definition of a “bear market” in stocks is a 20 percent price decline from peak to trough. Although there are several different index’s one could use to measure, most often people are referring to the Dow Jones industrial average or the S&P 500 index. Traders tend to look at the S&P 500 because it’s far more broad then the Dow 30 and less volatile than the technology heavy Nasdaq 100. Since 1999 there have been three bear markets in the S&P 500. All bear markets are definitely not created equal. The “tech wreck” of 2000 and the real estate implosion of 2007 were vastly larger than the minor 2011 bear caused by the European crises. The main reason that bears differ is that the bull markets that precede them are often unique. Story, Sentiment and Market Position Prices of any asset are determined by three things:...

Market Update: Getting Ready for 2019

The equity market slide continued in a big way, including the worst week for the Nasdaq in about a decade. Jack Bouroudjian unpacks it all and looks at what traders should watch to begin 2019. The post Market Update: Getting Ready for 2019 appeared first on OpenMarkets. Source: CME Open Markets - Market Update: Getting Ready for 2019

Why Currencies Were Less Oil-Linked in 2018

OPEC’s decision to cut oil production beginning in January 2019 might have been expected to boost oil-linked currencies, but other factors are taking their toll. The currencies most closely associated with crude oil prices are the Canadian dollar (CAD) and the Russian ruble (RUB), although the former is also heavily influenced by U.S. interest rates. Canadian Dollar Correlation between the CAD and oil has risen in recent months and the loonie has been boosted by a cut in production in Alberta that saw Western Canada Select crude surge more than 70 percent, narrowing its discount to the U.S. benchmark, WTI. However, Vincent Cignarella, currency strategist at Bloomberg notes that trade and fundamentals often have a greater impact on the value of the CAD. A JP Morgan report on the outlook for the CAD in 2019 has USD/CAD remaining elevated at the beginning of the year on weak local oil prices...

By NIBARead article

December 20, 2018

1 min read

FY 2018 Agency Financial Report - CFTC

Each year the CFTC publishes an agency financial report which provides data on financial and performance, operations management and information on the CFTC. This is the 14th annual report that has been published. Please see the link below to access the report: CFTC 2018 Report

By NIBARead article

December 20, 2018

2 min read

Be Prepared - Tax Law Impacts

The recently enacted Tax Cuts and Jobs Act (TCJA) has made several changes to the tax law. Below we have summarized some of the changes we feel may affect some of our client base, mainly traders and investors. The TCJA suspended all miscellaneous itemized deductions, subject to a 2% floor, for individuals including investment fees and expenses. Therefore, investors are no longer entitled to these investment expenses. An important thing to note is that the TCJA did not change investment-interest expense rules. The itemized deduction is limited to investment income, and any excess is carried forward to subsequent years. The TCJA also modified carried interest rules for managers. In order to benefit from long term capital gains allocated through profit allocation or carried interest, hedge fund managers must now hold an underlying position in the fund for three years. Normally, long term capital gain requires a one year holding period....

By NIBARead article

December 20, 2018

4 min read

What is an ISSP

An Introduction for Introducing Brokers Security matters, and the NFA and other financial regulators are pushing to help market participants appropriately protect their customers and themselves against cyber threats which could result in stolen data, compromised systems, and the potential theft of funds or other illegal transactions. An Information Systems Security Program (ISSP) is mandated by the NFA & CFTC for futures market participants including FCMs, CTAs and IBs. An ISSP is a written document that describes the actions a Member takes to protect its systems and data against associated risks. It could save your business. NFA guidance allows Members to adjust ISSP requirements to match their business and operational complexity. Steps include: ● Identify and document critical systems and critical data (e.g., customer information and financial data) ● Document and follow policies and procedures to manage access to critical systems and data (e.g., user access controls and user authentication)...

By NIBARead article

Page 21

NIBA Journal

Market Update: The Factors That Influenced 2018 Markets

Market Update: December Review

What to Watch in Energy Markets in 2019

Market Update: What’s Driving the Market?

What Makes A Bear Market?

Market Update: Getting Ready for 2019

Why Currencies Were Less Oil-Linked in 2018

FY 2018 Agency Financial Report - CFTC

Be Prepared - Tax Law Impacts

What is an ISSP

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