NIBA Journal

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

June 16, 2016

Resources, Resources, Resources

Resources, Resources, Resources by Tom Sandy & Ryan Griffeth Resources are part of NIBA’s mission to provide the information and education you need to grow your business. At a meeting of our Advisory Group (AG), several members wondered if we were doing enough to collect and offer industry resources to the membership. As a result of the AG’s suggestions, we have undertaken an initiative to increase resources available to you. NIBA has begun an informal series of meetings with industry participants to discuss which materials will be most helpful to brokers and clients who want to understand and use products and services more effectively. These industry participants include exchanges such as the CME Group, NADEX and ICE; and, service providers, including lawyers, accountants, marketing consultants and compliance trainers. Resources we hope to share include video presentations, online and in-person education and other educational/informational materials and programs. The subjects include market-specific...

Life of a Brokerage Firm

Life of a Brokerage Firm “If it were easy, everyone would be doing it,” is the old adage when it comes to commodities trading and brokerage. Our work can be very rewarding but at the same time comes with a unique set of challenges that we all must overcome in our own ways, all the while trying to keep our sanity. The trading and brokerage business has changed greatly over the years as regulations have increased and technology has become a part of everyday life. The current state of the futures industry is quickly changing and this article series is intended as an educational and informational resource for the industry. Commodities brokers and brokerage firms have been attempting to adapt to new environments from a regulatory and technology perspective for a number of years now. Some have done so very successfully and others have struggled to make the necessary transitions....

Two Key Ways to Tackle the Derivatives Cost Challenge

Two Key Ways to Tackle the Derivatives Cost Challenge By John Omahen, vice president - post-trade derivatives, FIS In today’s low-margin futures and derivatives business, low interest rates and high operating costs in the clearing community are causing enormous strain on profitability. For firms who have decided to remain in the business, their top priority is ensuring their operating model is sustainable by implementing more efficient technology and finding cost-effective ways to perform their middle- and back-office operations. However, doing more of the same will not be enough for most sell-side institutions in the derivatives clearing business. They will need to take a more radical approach to find those cost savings than they ever have before. With the “keep the lights on” costs increasing every year for firms, the issue has never been so critical. In the past when investment banks were looking to alleviate costs, they turned to a...

NIBA/DePaul Joint Program Announcement

We are excited to announce our third annual joint summer event with DePaul University. The afternoon meeting will be held on the downtown Chicago campus of DePaul University, Jackson Blvd at State Street, and includes two business sessions and a networking cocktail reception. Compliance and Regulation of Marketing Managed Futures, led by Mark Shore, Adjunct Professor at DePaul University takes us past raising assets to the “must know” aspects of the unique regulations and compliance issues surrounding the marketing of managed futures. Mark’s panel includes Mike Coglianese of Michael Coglianese, CPA, PC and Carl Gilmore, of Integritas Financial Consulting. Cybersecurity: What You Need to Know Now! is the panel discussion led by attorney Jeff Henderson, Greenberg Traurig. This session addresses the current state of regulation from the point of view of all categories of industry registrants and participants, in addition to discussing enforcement. The experts on this panel include Gil...

By NIBARead article

May 25, 2016

3 min read

Ask the NFA

As your industry advocate, the NIBA provides many services which help your business stay in compliance with NFA regulations. "Ask the NFA," is the way you can ask questions about those regulations and compliance requirements without having to call NFA directly. Just email us at nfacomments@theniba.com and we will get the answers for you. Please keep in mind the purpose of this contact is to keep the lines of communication between NFA and NIBA members open, not to fix any specific individual concerns. This month's questions were selected from those submitted by NIBA members. The answers were supplied by NFA staff. If I have a cybersecurity issue who should I notify at NFA and what is NFA's response/reaction to the notification? Members should adopt a response plan within their ISSP that includes notification to NFA, relevant regulatory bodies and law enforcement based upon the type, severity, and materiality of an...

NFA CEO Daniel Roth to Retire

NFA announced on May 23rd that President and CEO Daniel Roth has announced his plan to retire in the coming year. NFA's Board of Directors has authorized the formation of a committee to conduct a search for his successor. The search will consider both internal and external candidates. Mr. Roth joined NFA in September 1983 as an attorney and has held a number of positions with increasing responsibilities, including General Counsel, Executive Vice President and Chief Operating Officer. In January 2003, Mr. Roth began his tenure as President and CEO. "I'm proud of all that NFA has achieved during my time as CEO," said Mr. Roth. "NFA is well-positioned to fulfill its expanding regulatory responsibilities in the coming years. I've been honored to spend more than 30 years working with a talented and diverse group of professionals who are dedicated to safeguarding market integrity." "Dan has been central to the...

CFTC Statements on NFA CEO Departure

Statement of CFTC Chairman Timothy Massad: "It has been a privilege to work closely with Dan Roth throughout my time as Chairman of the CFTC. We have forged an excellent relationship over the past two years, one which I have very much enjoyed. The NFA plays an important role in the markets that the CFTC regulates, and Dan’s knowledge, experience, and commitment to collaboration have been of tremendous value to our work and to me personally. I look forward to continuing to work together as the NFA searches for his replacement over the coming months. I congratulate Dan on his record of accomplishment, I thank him for his friendship and I wish him the best of luck in all his future endeavors." Statement of CFTC Commissioner Bowen: "I congratulate Dan on his long and fruitful career at the National Futures Association (NFA). Dan and I started our careers in finance...

By NIBARead article

May 24, 2016

1 min read

CME Group Regulatory Outreach Program

CME Group’s Regulatory Outreach Program provides market participants with the information and resources necessary to meet their compliance needs. Our goal is to work with market participants proactively to ensure they understand our regulatory requirements and thereby avoid potential problems in the future. The program aims to: Effectively communicate rule modifications, rule advisories and other rules-based information to market participants Promote a uniform understanding of Exchange rules and regulations Serve as a resource for trade practice and surveillance based questions Build constructive, ongoing relationships with industry participants Proactive compliance and more informed customers make better markets. Outreach is available for industry veterans and new industry participants alike, from individual traders to firms. Our Outreach team is available by phone or email to answer compliance questions, or to schedule informational or educational sessions tailored to suit your needs. Use the Resource. We are here to help. CME Group's Regulatory Outreach Program...

By NIBARead article

Housekeeping, Reminders and Updates May 2016

May 24, 2016

4 min read

Housekeeping, Reminders and Updates May 2016

FINANCIAL CRIMES ENFORCEMENT NETWORK Customer Due Diligence Requirements for Financial Institutions Finalized On May 11, 2016, the Financial Crimes Enforcement Network (“FinCEN”) issued its final rules under the Bank Secrecy Act (“BSA”) to strengthen and clarify the customer due diligence (“CDD”) requirements for covered financial institutions such as: bank; brokers or dealers in securities; mutual funds; and futures commission merchants (“FCMs”) and introducing brokers in commodities. Such financial institutions, under the final CDD rules (“CDD Rules”), will now be required to verify and identify the beneficial owners of all legal entity customers during the account opening process. Further, the CDD Rules identified four (4) core elements of CDD and FinCEN believes that there should be explicit anti-money laundering requirements for all covered financial institutions, in order to ensure uniformity and clarity across all sectors. The core elements of CDD are as follows: i. Customer identification and verification; ii. Beneficial ownership...

Save-the-Date: July 14, NIBA/DePaul Joint Event

Mark your calendar now to attend the NIBA Joint Event at DePaul University Chicago Campus, July 14. For the 3rd year in a row, this afternoon meeting will include business sessions and and time for networking. A cybersecurity panel led by Jeff Henderson of GreenburgTraruig, and including Gil Vega of the CME Group, Matt Kluchenek of Baker & McKenzie, and the NFA will be one of the focus topics. Check the website for Program updates -- registration opens soon. Questions: Jerry Nolan, NIBA Chairman for this Event, jnolan@countycorkllc.com or committee members, Tom Sandy, ts@ricedairy.com; Mike Burke, mikeb@highgroundtrading.com; or Mark Washack, mark.washack@wedbush.com.

By NIBARead article

Page 49

NIBA Journal

Resources, Resources, Resources

Life of a Brokerage Firm

Two Key Ways to Tackle the Derivatives Cost Challenge

NIBA/DePaul Joint Program Announcement

Ask the NFA

NFA CEO Daniel Roth to Retire

CFTC Statements on NFA CEO Departure

CME Group Regulatory Outreach Program

Housekeeping, Reminders and Updates May 2016

Save-the-Date: July 14, NIBA/DePaul Joint Event

Join NIBA

Members

Resources

Directories

Join Our Newsletter