Dear NIBA Member – Finding the right FCM to clear customer business is the #1 priority of most IBs right now. We know that over 50% of the IBs transferred from MF Global, Inc. have subsequently transferred out of the FCMs to which they were transferred – many because of a “bad fit.” Sources are reporting that up to 50% of the IBs and CTAs who did business with PFG have not found a new clearing FCM a full six weeks after the firm’s demise. As registered industry professionals – IBs, CTAs or APs, you have many responsibilities and obligations…...
Questions Regarding FCM Failures and NIBA’s Role
Dear NIBA Membership: The collapse of Peregrine Financial Group, Inc. (‘PFG’) represents the second time within nine months that a FCM failure accompanied by a shortfall in customer segregated funds has severely impacted the businesses of NIBA members. Many of you have asked why the PFG trustee has not distributed any funds, whereas the MF Global, Inc. (‘MFGI’) trustee made distributions early on in the bankruptcy and continues to make such distributions. You have also asked what role NIBA plays in both these situations. Second question first. NIBA is organized as a membership trade association. NIBA is mandated by its…...
Statement of the NIBA to the Technology Advisory Committee, CFTC
July 25, 2012 Commissioner Scott O’Malia Three LaFayette Centre 1155 21st Street, NW Washington, DC 20581 Statement of the NIBA to the Technology Advisory Committee, CFTC Commissioner OʼMalia – Thank you and the CFTC Technology Advisory Committee for inviting the participation of the National Introducing Brokers Association (NIBA) in the conversation regarding the issues of the Committeeʼs meeting July 26, 2012. The NIBA was founded in 1991 as a non-profit association, whose mission is to support the business efforts of retail futures professionals through education, information and networking. Membership is open to Introducing Brokers (both IIB and GIB), Commodity Trading…...
Chairman’s Message | July 2012
Dear Members – In our November 2011 newsletter I wrote: “The past three weeks have been the most frustrating, the most confusing, the most disappointing weeks I’ve spent in the 35 years I’ve been in the futures industry.” I never expected I would feel that way again. On July 9, two weeks ago, I was preparing for a trip to Washington, DC to meet with CFTC staff on several issues of concern to Association members, primarily the implementation of CFTC Rule 1.71 – Conflict of Interest. By the time I arrived at the Commission, the focus of our meetings had…...
Effective Date of NFA Financial Requirements Section 16 and the Related Interpretive Notice – FCM Financial Practices and Excess Segregated Funds/Secured Amount Disbursements
Notice to Members I-12-14 July 18, 2012 Effective Date of NFA Financial Requirements Section 16 and the Related Interpretive Notice – FCM Financial Practices and Excess Segregated Funds/Secured Amount Disbursements The Commodity Futures Trading Commission (CFTC) has approved NFA Financial Requirements Section 16 and the related interpretive notice entitled FCM Financial Practices and Excess Segregated Funds/Secured Amount Disbursements. As described below, NFA Financial Requirements Section 16 and the related interpretive notice impose new requirements on FCMs with respect to customer segregated funds and secured amount funds accounts and require reporting of specific information regarding financial and operational information on a…...
Frequently Asked Questions – Trading Program Performance Calculations and Presentation by CTAs with Client Assets held at Peregrine Financial Group, Inc.
July 17, 2012 Frequently Asked Questions – Trading Program Performance Calculations and Presentation by CTAs with Client Assets held at Peregrine Financial Group, Inc. As a result of the enforcement actions taken by NFA and the CFTC against Peregrine Financial Group, Inc. (PFG), and the firm’s subsequent bankruptcy filing, NFA has received a number of questions from CTAs regarding how to calculate and present performance information for Trading Programs with client managed accounts that had trading positions and other assets held at PFG at the time of these actions. NFA is issuing this notice to address those frequently asked questions.…...
New Filing Requirements – Segregated Investment Detail Reports
Notice to Members I-12-11 June 27, 2012 New Filing Requirements – Segregated Investment Detail Reports Pursuant to NFA Financial Requirements Section 8, effective July 2, 2012, all NFA Member FCMs that hold customer futures and option segregated funds and/or foreign futures and foreign options secured amount funds will be required to file the Segregated Investment Detail Report (SIDR) as of the 15th (or the following business day if the 15th falls on a weekend) and the last business day of each month. The report is due by 11:59 P.M. Eastern time on the business day following the 15th and last…...
Guidance to NFA Member CPOs and CTAs that Operate or Advise Pools Pursuant to an Exemption under CFTC Regulation 4.13(a)(4)
Notice to Members I-12-09 June 22, 2012 Guidance to NFA Member CPOs and CTAs that Operate or Advise Pools Pursuant to an Exemption under CFTC Regulation 4.13(a)(4) On February 24, 2012, the CFTC issued final rules amending CFTC Part 4 Regulations to rescind the exemption from registration available to CPOs offering certain qualifying pools under CFTC Regulation 4.13(a)(4). Although Member CPOs that currently operate a pool(s) pursuant to a 4.13(a)(4) exemption may continue to operate the pool pursuant to that exemption until December 31, 2012, those CPOs must determine whether the 4.13(a)(4) exempt pool qualifies for an exemption from registration…...
Chairman’s Message | June 2012
Dear Members- The Answer: Communication, Communication, Communication. The Question: What’s the most important benefit of your NIBA Membership? The NIBA’s mission is to keep communication channels open between members, and between members and other industry participants, including regulators. The dialogue helps keep you informed and assures that your opinions are heard. This what the Association is doing this month: May 30 – NIBA filed a request for an extension of time to the CFTC for implementation and enforcement of Rule 1.71 – Conflict of Interest June 1 – CFTC granted NIBA’s request and extended enforcement for all IBs and FCMs…...
Webinar at the CME | Darin Newsom, Telvent DTN Senior Analyst
Date: Tuesday, 26 June 2012 Time: 2:00pm CT Location: Attend Online or In person at CME Group Visitor’s Center Theatre, 141 W. Jackson Blvd., 5th Floor, Chicago Telvent DTN Senior Analyst Darin Newsom will take a look at the Prospective Plantings report along with Quarterly Grain Stocks numbers, evaluating what the figures might mean for the markets going forward. Darin can provide analytical insight and commentary on all commodity markets, as well as the international and national events that move them. His commentary has been featured on CNBC’s Morning Call and The Wall Street Journal Online MarketBeat. » REGISTER NOW...