NIBA is pleased to announce that its efforts to gain the release to IBs of their October Commission Runs have been a success. In our ongoing efforts to represent our Members interests in the MF Global bankruptcy, Melinda Schramm worked with NIBA legal counsel Schuyler, Roche & Crisham (“SRC”) to send correspondence dated January 3, 2012, to the Trustee and the Bankruptcy Judge with copies to CFTC, NFA, CME and ICE (view full copy of the letter sent by SRC to the Trustee). The correspondence outlined the importance to the IB community of obtaining the October Commission Runs, for among…...

For many in the agricultural community, the failure of MF Global shook the very foundation on which the hedging industry is built. Since the beginning of this unprecedented ordeal, the CME Group has advocated on behalf of our members and customers, and we will continue doing everything in our power to ensure that another failure at the firm level does not happen again. Most important to us is that all customers affected see their property returned — as much as possible, as soon as possible. Our work with the Bankruptcy Trustee has already helped to accelerate that process. We successfully…...

The MF Global (MFG) bankruptcy has been a nightmare for managed futures customers, brokers and introducing brokers, SROs and the CFTC. The bad news keeps coming – in addition to the headaches the bankruptcy has caused the industry from an operational standpoint, we have now heard from MFG trustee James Giddens that there is the distinct possibility MFG customers will ultimately not be made whole. Regardless of whether customers are made whole, the MFG bankruptcy has highlighted important issues with respect to oversight of the industry. The three most important of these issues include (1) the design of the current…...

The MF Global trustee, James Giddens, estimates a $1.2B shortfall in domestic customer segregated funds, and a further shortfall of $800M of foreign secured funds exists unless and until foreign jurisdictions allow that money to be returned by foreign MF Global affiliates to the US broker.  However, the CFTC and Giddens take the position that the US broker’s proprietary firm assets will first go toward reducing any such shortfalls before any amount would be paid to creditors. Assuming the bankruptcy judge accepts this position, a key question would then be just how much firm assets there are.  The US broker…...

On behalf of NIBA Members, this letter was delivered to MF Global courtroom and trustees by NIBA attorneys on Jan. 4, 2012. A transcript of the letter is below. View the Original Document as Submitted to the MF Global Trustee (PDF) Dear Mr. Giddens: I write on behalf of my client, the National Introducing Brokers Association (NIBA). The NIBA is a membership organization which has represented the interests of Introducing Brokers (IBs), Commodity Trading Advisors (CTAs) and other registered futures industry professionals for over 20 years. Many NIBA members cleared customer’s transactions through MF Global (MFG), and earned commissions as a…...

Discussions with the NFA regarding accounting requirements and concessions in light of the MF Global debacle.  Even though these may change, this is what is recommended up to this point. Receivables from MFG are to remain non-current for net capital Broker commissions remain a liability, a reduction of net capital As long as both parties are in agreement, the MFG broker commissions due can be added back in for the net capital computation. Information provided courtesy of Michael Coglianese CPA, P.C. www.cogcapa.com...

Agricultural bankers and other players in the world’s grain markets say fallout from the collapse of giant broker MF Global is changing cash grain trading and fueling calls for alternatives and reforms. Read the full article from Chicago Tribune...

To Members of the NIBA: On Thursday, Dec. 15 I wrote to the office of Commissioner Jill Sommers to ask questions concerning the permitted investments of customer seg funds by FCMs. Yesterday I received a call from her office. The Commission will be reviewing current regulation in the context of lessons learned from MF Global. Ms. Sommers indicated that input from the NIBA will be a valuable part of that process. I will keep you posted on the dates, agenda points, etc., and I invite comments and suggestions. Melinda Schramm, Chairman NIBA...

The MF Global trustee held a meeting today (12/20/11) to provide information about the recovery of MF Global customer funds that were held for trading futures on foreign exchanges. Such funds are treated as being in a separate class than the funds held for trading futures on domestic exchanges under US bankruptcy law, and may or may not have their own shortfall apart from the apparent shortfall in domestic funds. The customers of the US MF Global broker had more than $800M of these offshore funds, and more than $600M of that amount was with the UK MF Global affiliate.…...

Announcement Re: AML and Ethics Training Certifications NIBA members who formerly cleared MFG and took AML and Ethics Training from the Walsh Agency, can receive a copy of their certification documents free of charge. Receiving FCMs are required to confirm that APs have completed AML and Ethics Training. Those confirmation records are not readily accessible from MFG. If you took your trading from the Walsh Agency, the Agency will send you a copy of the declaration and certification for no charge. Email [email protected], an NIBA Member Benefits Provider, and they will send you the documents within 72 hours free....