NIBA Journal

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

Market Update: The Fed and Dollar Strength
CME Updates
July 18, 2018
1 min read

Market Update: The Fed and Dollar Strength

Jack Bouroudjian discusses this week’s Fed-driven market, and why the U.S. dollar is beginning to drive the market. The post Market Update: The Fed and Dollar Strength appeared first on OpenMarkets. Source: CME Open Markets - Market Update: The Fed and Dollar Strength

By NIBARead article
Market Update: The Trump/Putin Impact
CME Updates
July 16, 2018
1 min read

Market Update: The Trump/Putin Impact

Jack Bouroudjian discusses the three issues on the front burner for markets this week: The Trump-Putin meeting, Jay Powell’s remarks at the European Central Banking Forum and earnings coming this week. The post Market Update: The Trump/Putin Impact appeared first on OpenMarkets. Source: CME Open Markets - Market Update: The Trump/Putin Impact

By NIBARead article
On Demand Webinar Series - Interest Rate Trading
Member Announcements
July 12, 2018
1 min read

On Demand Webinar Series - Interest Rate Trading

This new 4-part on-demand webinar series gives you the insights you want and a better understanding about trading liquid interest rate futures markets. Enjoy instructor-led education at your convenience. The series includes: Treasury Futures 1.0: Understanding the delivery process, basis, carry, net basis and cheapest-to-deliver (CTD) mean. Treasury Futures 2.0: A deeper dive into basis trading, how to use Treasury futures for duration adjustment, and applying futures for yield curve management. STIR Futures 1.0: Everything you need to know about the new 3-month SOFR, fixed nature of basis point value (BPV); contract specifications and the underlying market/index. STIR Futures 2.0: How to hedge interest rate exposure; using STIRS to create synthetic investments; trading Eurodollar-Fed Funds spreads. CLICK HERE FOR ON DEMAND WEBINAR SERIES

By NIBARead article
Why The Future of Energy Could Be U.S. Natural Gas
CME Updates
July 12, 2018
6 min read

Why The Future of Energy Could Be U.S. Natural Gas

Geology dictates that crude oil and natural gas go hand-in-hand. Drill a well for one, and there’s a good chance you’ll also find the other. For years, oil’s coupling with gas (for better or worse) underpinned pricing and trading for a variety of petroleum products worldwide. That includes liquefied natural gas (LNG), which was traditionally bought and sold through long-term contracts linked to Brent crude. The American shale revolution, and the emergence of U.S.-produced LNG as an energy source for markets around the world, changed that, says Derek Sammann, Senior Managing Director, Global Head of Commodities and Options Products for CME Group. “With the global natural gas markets increasingly referencing U.S.-sourced Henry Hub natural gas as a central reference point for global natural-gas markets, what could the future of U.S. energy markets look like?” Sammann asked in introducing the Future of Energy forum at a Chicago Council on Global Affairs...

By NIBARead article
Chairman's Letter - July 2018
Member Announcements
July 12, 2018
2 min read

Chairman's Letter - July 2018

July was named by the Roman Senate in honor of Roman general Julius Caesar, the politician who played a critical role in the demise of the Roman Republic and the rise of Roman Empire. “Dog days” occur in early July, and refer to the time of year when the hot sultry weather of summer usually starts. In the U.S., we celebrate National Hot Dog Month and National Ice Cream Month throughout July. On July 18 and 19, LabCFTC will hold Office Hours at the NYC office of the CFTC focused on FinTech innovation. LabCFTC was designed to give the CFTC better understanding of changing technologies which may ultimately influence the agency’s policy development. To make an appointment to attend Office Hours, contact LabCFTC@cftc.gov. The CFTC’s NYC office is located at 140 Broadway. Have you ever taken a look at the NFA Enforcement and Registration Actions pages? Accessible at nfa.futures.org/news/EnforceRegActions, these...

By NIBARead article
How to Launch a Crytocurrency Hedge Fund
June 28, 2018
4 min read

How to Launch a Crytocurrency Hedge Fund

How to Launch a Cryptocurrency Hedge Fund: Manager Registration Considerations Unlike other private funds, complex analysis is required to determine registration considerations for the manager of a crypto fund. This is because, unlike other asset categories such as securities and futures, cryptocurrency investments are not their own asset class. Rather, such investments are currently regulated by the asset class that a particular instrument most closely resembles – such as a security, commodity, commodity interest, cash or consumer item. Consequently, launching a crypto fund requires an in-depth understanding of securities and commodities laws, as well as on ongoing review of regulatory developments in the crypto space. Below is a sampling of registration-related considerations in relation to the fund’s manager. International regulations and additional crypto investment types are not addressed herein. If a fund invests in a combination of the investment types discussed below or in other investment types, registration considerations must...

By NIBARead article
Suspense Accounts
June 28, 2018
1 min read

Suspense Accounts

If you utilize suspense accounts this is an advisory that recently came out that if you haven't taken note of you should.  New guidance that will become effective on October 1, 2018 effects those utilizing certain types of trading activities.  Be sure to read through the below advisory to make sure you are covered.  If you have questions or concerns we always advise to contact your compliance or legal professional.  If you would like a recommendation on a compliance or legal professional who is well versed in this area please feel free to reach out to the NIBA for a referral. READ FULL ADVISORY HERE

By NIBARead article
CFTC Update
June 28, 2018
2 min read

CFTC Update

The Commodity Futures Trading Commission (CFTC) announced today that it has unanimously approved proposed amendments to its regulations to simplify obligations imposed on a self-regulatory organization (SRO) when carrying out its financial surveillance program for futures commission merchants (FCMs). The proposed amendments to Regulation 1.52 revises certain minimum standards that an SRO must maintain in its financial surveillance program over FCMs to ensure their compliance with the CFTC rules and regulations as well as those of the SRO. The proposal is a result of the CFTC’s Project KISS initiative, which requested public input on simplifying and modernizing the agency’s regulations to make them less burdensome and costly, while maintaining their regulatory benefits. The comment period for the proposed amendments expires 60 days after the proposal’s publication in the Federal Register. SROs are required by Regulation 1.52 to routinely conduct examinations of FCMs and their compliance with minimum capital, customer fund...

By NIBARead article
Wash Trades
June 28, 2018
1 min read

Wash Trades

CME Group’s Market Regulation Department works to protect the market integrity of all four of its Exchanges – CME, CBOT, NYMEX & COMEX.  Take a look at the “Wash Trades” video below produced by CME.  This is an intro to what to look out for and how to educate yourself about wash trades. These videos are very informative and make for great content when educating new brokers or market participants.  NIBA will be publishing more video content on a regular basis and we encourage our members to utilize these tools on their websites and other mediums. Watch embedded video

By NIBARead article
AG Markets Using More Qualitative Data
Member Announcements
June 14, 2018
1 min read

AG Markets Using More Qualitative Data

Agricultural data have been around for almost as long as there have been markets, but the type of data and the amount have changed over time. Whether its data from the U.S. Department of Agriculture, satellite data that forecast weather or growing conditions, or any of the many daily, weekly or monthly reports, market participants sort through reems of information to give them insight on the market. Ken Morrison, editor of Morrison on the Markets newsletter, says he uses several types of market data to help confirm (or contradict) information he gathers from his contacts, helping him make decisions. A lot of the data he uses are quantitative, such as weekly export sales, monthly USDA supply and demand reports, the weekly Commitment of Traders report from the Commodity Futures Trading Commission and the CME Ag Daily Bulletin. But he says it’s also good to get qualitative information about other countries....

By NIBARead article
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