Skewing Your Diversification is an internet talk show on alternative investments hosted by Mark Shore. The show covers many topics of alternatives with a special focus on managed futures, hedge funds, commodities, currencies and futures. Stay tuned for more episodes and lots of great guests! Sunday nights the show is live-streaming at 9pm ET on www.btfd.tv To view past episodes, go to the Skewing Your Diversification page here....
Four Key Items for an Emerging Manager to Grow Their Business
Over the years of meeting emerging managers I have found a common theme among them. They often believe when they start a money management firm, investors will automatically find them and invest. In other words, it is the “I build it and they will come” perspective. The new managers often miss the point; they started a small business. With any business, there are many components to handle including marketing / business development, technology, hiring employees, vendors, compliance and operations. Similar to most businesses, marketing / business development is often the key to grow or slow the business. In this article....
A Compliance Perspective on Managed Futures
As investors look to diversify their investment portfolio, one option is trading of derivative contracts, including futures and options on futures. However, as the normal investor may not have much knowledge or experience trading derivatives, many investors choose the route of managed futures. Traditionally, there are three ways in which an investor can pursue this opportunity: a broker assisted account, an individual managed account, or a pooled investment vehicle. To gain a better understanding of a particular firm, a customer can research a firm via NFA’s BASIC system found on NFA’s website, www.nfa.futures.org. This system allows a potential customer to....
CTA Insights: Sugar Creek on Discretionary Fundamental Agriculture Trading
We at Sugar Creek Investment Management, LLC believe that capturing fundamental alpha in agriculture requires in-depth knowledge about the underlying commodities, such as how they are produced, priced, traded, and consumed. We also believe that one cannot back-test discretionary fundamental agriculture trading and that forecasting positive returns is a function of qualitative judgment made on the trading specialist’s ability to manage risk/reward in a practical manner in respect to their trading discipline and market focus. This trading philosophy is just one of many but it is where we feel we have an edge and it is an approach that we....
Chairman’s Letter
Dear Members: Communication, communication, communication….the key to success in our industry. It can take many forms — and this month you can take part in three of them at the NIBA. July 8 — Our co-sponsored program at DePaul University (LINK HERE) is the place to learn about the changes CFTC Reg. 1.22 will bring for your customer relationships in the coming months. NIBA LinkedIn — Did you know the NIBA LinkedIn Group has more than 1,000 members? Members meet up regularly, post and read news from all over the industry. Ask NFA — Our newest feature lets you ask....
July 8-NIBA/DePaul University Co-Sponsored Event
On the afternoon of July 8, 2014, the NIBA will present its first co-sponsored event with DePaul University in Chicago. Two panel discussions and a Networking Reception are included in the afternoon’s program. Registration is required. Click to Register The first panel will discuss the effect of CFTC Reg. 1.22 on your relationship with your customers. FCM implementation of Reg. 1.22 means that customers will have shorter timeframes in which to meet their margin calls. Although this regulation is scheduled to go into effect over the course of 2014, several FCMs have already began to transition by making the required....
Get to Know the Regulators: NFA’s Registration Department
As a NIBA member, you are already familiar with the process of applying for CFTC registration and NFA membership. But you may not be familiar with the diverse array of responsibilities relegated to NFA’s registration department. The Registration department reviews applications for CFTC registration and NFA membership, and approves or denies those applications based in part on results of background checks and proof of passing appropriate qualification examinations. In addition to staffing the Information Center, which we highlighted last time and you can find here, the department is responsible for maintaining NFA’s Online Registration System, reviewing all disciplinary information and....
Housekeeping, Reminders, and Updates
NFA Registration Update Effective June 1, 2014, NFA imposed a $1,000.00 late disclosure filing fee for members who fail to disclose or updateregistration records involving prior and/or current disciplinary matters. All disciplinary matters involving members and APs are considered properly disclosed if registrations are updated prior to NFA discovering them. Non-disclosure of disciplinary actions will result in the $1000.00 fine. The NFA rule can be read here. CPO Reminder – Financial Statements must comply with GAAP (Generally Accepted Accounting Principles) NFA has recently been identifying and advising CPOs with regard to making sure their financial statements are in compliance with....
Two-minute primer on leveraging your brand
I’ve met many traders, brokers, and introducing brokers having covered the derivatives arena for 30 years. Some have been memorable, some not. Typically why they are memorable is for a few reasons: a) performance, especially as a trader, b) what sets them apart, that is, what makes them special, especially as a broker, and c) keeping up the relationship, in other words, they continue to keep in touch even if they don’t see an immediate benefit. From a journalist’s point of view, brokers, large and small, are typically the easy people to access. They are happy – usually – to....
Era of Convergence
It probably won’t surprise many to hear that we are living and benefiting from an era of convergence –from network access to data, to digitization, to cloud computing. Convergence has become the new black. With a desire for increased transparency and risk management, we are experiencing the convergence of OTC with common clearing and Trade (Swap Data) Repositories along with Swap Execution Facilities and the increased trading of standardized products. Convergence is the name in cloud computing where advancements in compute, storage, and network are converging to enable new capabilities, decrease cost, and introduce scale previously thought unimaginable. Mobility....