The NIBA conference held in Chicago last month offered a wide variety of informational sessions applicable to Introducing Brokers’ business.  My compliments to Melinda Schramm and the NIBA board for assembling a conference schedule that covered topics of importance to the IB community, many of which were very timely, and provided an essential understanding of certain issues that currently impact IB business.    I participated on the panel discussion on Anti-Money Laundering (“AML”) with attorney Neal Stevens, who provided a comprehensive overview of AML requirements, and NFA Associate Director, Valerie O’Malley, who discussed common deficiencies found in NFA reviews and…...

As the retail futures industry navigates the equity world, it’s important for everyone within the industry to focus on educating their clients and prospects about futures trading.  We know that people trade futures markets for a variety of reasons and helping your clients understand what the markets may offer them is one of the first steps to take. Market education, along with product awareness, is the foundation that provides the new or maturing futures trader with the greatest chance for success.  Once a customer understands the basics of futures, it becomes easier to build awareness of the benefits.  Efficiency in…...

The Federal Reserve is likely to postpone any decision on exiting or tapering its quantitative easing program until 2014.  Current members of the FOMC are hyper-sensitive to economic data, especially regarding US labor markets.  The government shutdown and debt ceiling debate has negatively impacted economic growth as well as made what economic data that is being released suspect in terms of informational value.   Our own view is that the events in Washington, DC, will possibly cost the US economy about 1.5% real GDP growth in Q4/2013.  Our projections back in the summer of 2013 were for a 2% annualized growth…...

I have the privilege of leading the NIBA Legal Update once again this year. This panel of industry experts including Mike Coglianese and Jeff Kopiwoda will address legal developments – CFTC, NFA and others – which will affect an IB or CTA business. One issue we will discuss is CFTC Reauthorization and why it is important to each of us. The NIBA has submitted a number of suggestions to the U.S. Senate Committee chaired by Debbie Stabenow which is responsible for the reauthorization process. Included are comments on customer protections, liquidation processes in the event of an FCM bankruptcy, Reg.…...

Are you planning on attending the NIBA fall conference in September, but youʼre not a member yet? No problem. You can join the Association when you register for the conference. Attendance at the event is complimentary for NIBA members. IBs and CTAs pay $150 per year. APs pay $75 per year. Also included in the IB and CTA membership is a subscription to the NIBA Journal, our online Newsletter and a listing in the online Broker Directory for the remainder of 2013. FCMs, Service Providers and others are urged to contact me directly. The NIBA membership meeting is more important…...

July 1, 2013 The Honorable Debbie Stabenow Chairwoman U.S. Senate Committee on Agriculture, Nutrition and Forestry 328A Russell Senate Office Building Washington, DC 20510 The Honorable Thad Cochran Ranking Republican Member U.S. Senate Committee On Agriculture, Nutrition and Forestry 328A Russell Senate Office Building Washington, DC 20510 Dear Chairwoman Stabenow and Ranking Member Cochran: The National Introducing Brokers Association appreciates the opportunity to submit the following comments to the Senate Agriculture Committee (Committee) with regard to issues relating to the reauthorization of the Commodity Futures Trading Commission (CFTC). The National Introducing Brokers Association (NIBA) is a non-profit membership association of…...

On April 17, 2013, the CME Group reduced grain and oilseed trading hours from 21 hours to 17-1/2 hours per day. This schedule cut afternoon hours and created a 45-minute pause in trading during the morning before open-outcry trading begins. This change back to the 1:15pm close was reportedly instituted by the exchange in response to complaints the longer hours were reducing liquidity and increasing operating costs. The NIBA took no official position in January in advance of the change as it was being contemplated because we did not receive any comment or opinions from NIBA members. Board members’ opinions…...

It has been a quick three months since I was elected as the Independent Introducing Broker representative on the NFA Board of Directors, and I wanted to take a moment to thank those members of the NIBA who supported me. With just one meeting under my belt, I have begun to talk with various industry people about changes I believe need to be made at the NFA. These include better customer protections, accountability for mistakes made with MF Global and PFG, an overhaul of the promotional review process, better hiring and training for auditors, and an upgrade to the technology…...

Dear NIBA Members, It is not my intention to be the bearer of bad news, but managing an IB in 2013 will have even more challenges. The impact of Dodd-Frank is trickling down. It will impact us as the CFTC continues to develop new rules, and the NFA must assure they are implemented. A few rules we should all be aware of that will affect how we do business includes the “taping rule” which takes effect on December 21, 2013. This change will impact larger IBs which generate more than $5 million in revenue over 3 years. Another change which…...

Please Note: The April 24, 2013 meeting in New York City has been canceled. Alternate dates and times for NIBA meetings will be posted shortly. Please also check the NIBA Newsletter frequently for meetings, conferences and other updates....