Have you attended compliance sessions in the past that have not quite addressed your concerns or perhaps hit topics that were interesting but not relevant to your firm?  This year we have setup our compliance session just for you!  The session titled “Whats on your Mind?” answers just that calling by creating an audience driven session.  What does that mean exactly?  You are in the driver’s seat and can select in real time the compliance topics you would like to hear the panel discuss.  This panel is a great mix of compliance experts and regulators.  Below is a bio for…...

On Tuesday, August 14, 2018, NFA launched a new Promotional Material Filing System. The new system provides firms the ability to seamlessly track their promotional material submissions throughout the entire review process, access correspondence and communicate with NFA reviewers, and view previously-filed promotional material for reference. NFA held a webinar to educate firms on the new system.  If you were not able to attend the webinar you can find an archived version below. Promotional Material Filing System Webinar – Archived...

CME Group MRAN 536: Documentation of Customer Orders and Submission of Suspense Accounts on CME Globex Effective on October 1, 2018, and pending all relevant CFTC regulatory review periods, this Market Regulation Advisory Notice will supersede CME Group Market Regulation Advisory Notice RA1605-5R from August 19, 2016. This Advisory Notice sets forth the circumstances under which a suspense account may be submitted on orders entered into CME Globex (“Globex”) and the requirements attendant to proper documentation of such orders. For purposes of this Advisory Notice, a suspense account means a temporary holding account that is submitted at the time of order…...

Written by:   Mark E. Ruddy, Esq. Maria Fielding National Futures Association (“NFA”) Proposes Virtual Currency Activities Disclosure Requirements NFA submitted an Interpretive Notice to the Commodity Futures Trading Commission (“CFTC”) regarding virtual currency disclosure requirements. Due to the unique nature of virtual currency activities, NFA has determined that customers may not fully understand the nature of and potential risks involved in virtual currency activities. In the notice, NFA also reminds Members of Compliance Rule 2-29, which prohibits the use of any promotional material that is misleading or deceptive; something Members should also consider when drafting virtual currency disclosure materials. Details…...

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…...

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…...

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…...

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....

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…...

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…...