NIBA Journal

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

June 28, 2018

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

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

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

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

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....

CME Group Education: Managed Futures

Educational Course: About Managed Futures Since the advent of investing, participants have always faced a dilemma: where, among the many asset classes, should an investor allocate their money. Layered on top of this important question are additional challenges facing the investor, like where to find global diversification, liquidity, non-correlation, transparency, and long and short strategies. Very few investments encompass all of these features, illustrated in figure 1 below. But managed futures satisfy many, if not all, of the prerequisites an investor needs. View Educational Course.

DePaul/NIBA Summer Symposium

The 5th annual joint NIBA/DePaul University Symposium to take place on Wednesday, August 8, at the DePaul University’s downtown campus located at 1 E. Jackson Blvd, Chicago, from 2:00 p.m. to 5:00 p.m. Doors open at 1:30 p.m., and the program ends with a wonderful cocktail reception starting at 5:00 p.m., on DePaul’s beautiful rooftop patio. A line up of special guest speakers will discuss a variety current and relevant topics that you’ll find interesting and informative. Space is filling up quickly so Please register soon for this special event! REGISTER HERE

Chairman's Letter - June 2018

Scholars generally agree that June is named after Lucius Junius Brutus (545-509 BC), the soldier-legislator credited with founding the Roman Republic after he overthrew its longstanding monarchy. In addition to being the most popular month for weddings in the United States, June also includes National Ice Cream Soda Day (June 20) and National Take Your Dog to Work Day (June 23). On June 5, NFA announced its intent to develop proficiency requirements for individuals who engage in swaps activities. The program will be applicable to all APs at FCMs, IBs, CTAs, CPOs and APs at swaps dealers and accessible online. NFA has formed an Advisory Committee to develop the requirements, and invites members to provide input or suggestions. Call Kristen Scaletta, Associate Director of Communications at (312)781-7860 or send her an email, kscaletta@nfa.futures.org. The CFTC held an open meeting on June 4 to discuss among other issues: (i) proposed rule...

By NIBARead article

May 30, 2018

1 min read

NIBA @ NFA DC

On May 17, I represented the NIBA at the U.S. House Agricultural Committee Reception hosted by the NFA. This annual event takes during the days NFA holds its board meeting in Washington. Mike Burke and Scott Stewart, IIB representative and GIB representatives respectively were both in DC for these meetings. While in Washington, Mike and I visited with the CFTC to discuss issues suggested by NIBA members. A summary of that meeting will be posted in a future newsletter. Discussions were also held with members of the legislature, the FIA and to further the planning for both our DePaul Symposium and September member meetings.

By NIBARead article

May 30, 2018

1 min read

2018 GDPR

The US is not the only part of the world with new regulation to comply with. The EU has recently put forth the General Data Protection Regulation (GDPR). If you do not do business in the EU an do not have any customers from that region - this is as far as you need to read. However, if you do have EU based customers or offices in the EU, please refer to the link below for additional information regarding the GDPR and how it comes into play for your operation. If you have questions or concerns please feel free to let us know and we can suggest one of our service providers in the legal and compliance areas that are well versed in this area of regulation. GDPR INFORMATION

By NIBARead article

Page 27

NIBA Journal

How to Launch a Crytocurrency Hedge Fund

Suspense Accounts

CFTC Update

Wash Trades

AG Markets Using More Qualitative Data

CME Group Education: Managed Futures

DePaul/NIBA Summer Symposium

Chairman's Letter - June 2018

NIBA @ NFA DC

2018 GDPR

Join NIBA

Members

Resources

Directories

Join Our Newsletter