NIBA Journal

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

January 24, 2018

5 Things to Know When starting a Cryptocurrency Fund

The cryptocurrency asset class is here to stay and growing at warp speed. The stories are real. Some cryptocurrency traders have turned $100,000 into $1,000,000 in less than a year. Now those traders are creating cryptocurrency funds so they can trade on a multimillion dollar scale. This article will focus on five things you should know before setting up your crypto fund. As a disclaimer I am not an attorney and therefore not providing you with legal advice. If you need a legal advice, our firm can point you in the right direction. We are a CPA firm that specializes audit, tax, and compliance services for the alternative investment industry. Cryptocurrency is one of the investment classes that falls into our specialized wheelhouse. Regulations: Regulations concerning crypto are also being implemented at warp speed. The IRS, CFTC, and SEC are developing laws to regulate the crypto asset class on an...

NIBA NYC Conference

This year's agenda has been posted and Registration is now OPEN for NIBAs annual Spring Conference in New York City. We will be holding a half day session on April 19th at the New York Athletic Club. Please see below to register for this year's event: https://www.theniba.com/niba-event/niba-nyc-conference/

How can an IB Benefit from the Tax Changes?

The tax changes will benefit IBs, CPOs and CTAs since most are organized as corporations or pass thru entities (LLCs , LPs and S-Corps) . The following will give you a summary of some of the main tax changes that will be effective in 2018. If you can defer income to 2018 from 2017 it could be tax beneficial to you. The new tax law under the Tax Cuts and Jobs Act includes many changes to the current law and will impact virtually every individual and business on a level not seen in many years. At the business level, the corporate tax rate has been reduced from 35% to 21% and the corporate alternative minimum tax has been repealed. Pass-through businesses currently pay tax at individual rates, the highest rate at 39.6%. The new tax law allows a temporary deduction in an amount equal to 20% of qualified income of...

Chairman's Letter - Jan 2018

January - the first month of the year in the Julian and Gregorian calendars. January (in Latin Ianuarius) is named after the Latin word for door - ianua, because January is the door to the year and an opening to new beginnings. According to ancient Roman farmer’s almanacs, the month is most often thought of as being named for Janus, the god of beginnings and transitions in Roman mythology. This year NIBA will present three in-person membership events. 2017‘s New York program was standing room only. Registration is already open on the website for this year -- April 19th, at the New York Athletic Club. Our traditional summer program will be held in July at DePaul University, Chicago. And September brings NIBA’s fall event at the CME Group Building, Chicago on September 13th. These in-person meetings are open to all NIBA members. NFA will hold its Annual Meeting of the...

Chairman's Letter - December 2018

Not Completely Out-with-the-Old: Definitely In-with-the-New The NIBA has had a good year. New members, four great in-person events, over 20 newsletters, and a terrific year-end Advisory Group Meeting. Our partnership with member FCMs, member Service Providers, DePaul University and the CME Group has grown and flourished. NIBA's voice and input on all types of industry issues including significant regulation, has been strengthened as we were included by the NFA and CFTC in roundtables and on advisory committees. In 2017, Association membership has been free for all registered IBs and CTAs. A firm only has to claim its listing on the NIBA website to enjoy all the benefits of membership. The new year will bring anticipated and exciting products, people and technology to the 1,201 NFA-registered IBs, and the 1,645 NFA-registered CTAs -- can you say "bitcoin?" Events are planned in NYC in April, in Chicago during July and September, and...

Introducing Broker Survey 2018 - Response Deadline Jan 31st

NIBA Members & Colleagues - In 1999, the first year I partnered with the CME Group to write The Complete IB Handbook, there were 1,564 firms registered with the NFA as Introducing Brokers (IBs) -- 404 as Independent (IIBs) and 1,160 as Guaranteed (GIBs). By 2012, while the industry was still reeling from the failures of MF Global and Peregrine Financial Group, and the IB community suffered terribly as a result, the NFA reported a total of 1,348 registered IBs -- 497 IIBs and 851 GIBs. Throughout industry ups and downs, IBs have continued to play an essential role, bringing both hedgers and speculators into the market. IBs have grown and evolved along with the needs of their customers and the globalization of the industry. Your IB provides unique, customized services to your clients alongside all the “basics” necessary to participate in the fast-moving, highly competitive marketplace. During November of...

NFA Additional Reporting Requirements - Virtual Currency Products

Additional reporting requirements for IBs that solicit or accept orders in virtual currency products A number of CFTC-regulated trading venues have launched or announced plans to offer derivatives on virtual currency products, including bitcoin. Given the volatility in the underlying virtual currency products, NFA is requiring each IB to immediately notify NFA if it solicits or accepts any orders in virtual currency derivatives. Until further notice, this obligation will apply on a continuous basis—any IB that does not currently offer virtual currency derivatives must notify NFA if it begins soliciting or accepting orders in these products. Effective immediately, an IB that solicits or accepts orders for one or more virtual currency derivatives must notify NFA by amending the firm-level section of its annual questionnaire, which is accessible by authorized users through the following link: https://www.nfa.futures.org/electronic-filing-systems/annual-questionnaire.html. The following question has been added to the firm-level section of the questionnaire: Does your...

Member Announcements

December 14, 2017

2 min read

Chairman's Letter - Dec 2017

“Elections belong to the people...” Abraham Lincoln, 1809-1865 Abraham Lincoln was the 16th President of the United States from 1861 until he was assassinated in 1865, and stated the above during the Lincoln-Douglas debates of 1858 when he was a candidate for U.S. Senate. The NFA has announced candidates for various positions on its board of directors. The nomination for the Guaranteed Introducing Broker (GIB) position is Scott Stewart, CEO of Stewart-Peterson Group in West Bend, WI. Scott served as the Chairman of the NFA IB Advisory Committee for several years, and is a past president of the NIBA. Scott would fill the position held since 1999 by Paul Georgy, who announced his retirement from the NFA board earlier this fall. Doug Bry, Welton Investment Partners and Brendan Kalb, AQR Capital Management are nominated in the CTA/CPO category where there are two positions open. Both men have significant experience in...

NIBA Newsletter Format

This year the NIBA has rolled out a number of exciting new changes including our 25th Anniversary "free" membership offer. The NIBAs newsletter continues to be a consistent and reliable source of industry information published twice monthly and covering topics related to education, compliance and innovation. Beginning in December the newsletter will only be accessible to registered members of the NIBA. You will notice the new format in your inbox this month. If you have not done so already be sure to claim your free membership which includes full access to the newsletter content.

Bitcoin: Will the Rally Last?

Report by Erik Norland, Senior Economist at CME Group This paper examines why bitcoin is so volatile; its supply and demand drivers, and how the cryptocurrency compares to commodities. What is most striking about the economics of bitcoin is the certainty of its supply and the vagaries of demand. The rate at which bitcoin is mined has been highly predictable and unlike almost any other asset – currencies or commodities – its ultimate supply is a known quantity, fixed well in advance. There will never be more than 21 million bitcoins. This feature makes supply almost perfectly inelastic. No matter how high prices go, miners will not produce more than 21 million coins. Moreover, price increases won’t necessarily incentivize a more rapid mining of bitcoin. Even if they did, it would only influence miners to create more bitcoin today at the expense of creating less in the future since the...

By NIBARead article

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NIBA Journal

5 Things to Know When starting a Cryptocurrency Fund

NIBA NYC Conference

How can an IB Benefit from the Tax Changes?

Chairman's Letter - Jan 2018

Chairman's Letter - December 2018

Introducing Broker Survey 2018 - Response Deadline Jan 31st

NFA Additional Reporting Requirements - Virtual Currency Products

Chairman's Letter - Dec 2017

NIBA Newsletter Format

Bitcoin: Will the Rally Last?

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