NIBA Journal

Insights, analysis, and updates from the National Introducing Brokers Association

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Risk Management

May 25, 2023

6 min read

The Evolution of Trading: Navigating Multi-Broker, Multi-Asset Platforms

By Rob D’Arco, CEO Rival Systems After 20 years of working in the trading industry, I’ve gained a unique perspective working with traders throughout their careers. Technology plays a critical role in their success, from the individual click trader on one exchange to the global firm running ultra-low latency automated trading strategies with an enterprise risk system. This article will explore the technical requirements as traders evolve and the key considerations when deciding which platform to use for a more streamlined, comprehensive trading and risk management experience. A Simple Beginning For a new trader, it's easy to begin trading with one broker, exchange, and account. It's cost-efficient and straightforward. The trader creates an account with the broker, logs into the broker's front end, and starts trading. Your top priority is to get up and running quickly with the least expense and to test your strategies. After that, things operate efficiently...

Seven of the Most Noteworthy Trading Days of 2016

With the big changes of 2016 still fresh in our memories, we take a look back at the year’s seven most interesting trading days to review what we may have learned (or not) about managing risk. The U.S. elections and UK’s Brexit referendum highlighted the need to manage political event risk, especially since opinion polls proved unusually unreliable. Monetary policy was on the move around the world. Following the Bank of Japan’s (BOJ) surprise move into negative rates at the end of January 2016, the European Central Bank (ECB) pushed further into negative rate territory in March 2016. In contrast, the U.S. Federal Reserve (Fed) hiked rates in December 2016 for only the second time since the financial panic of 2008. With the unemployment rate below 5% and inflation creeping higher, the Fed signaled that more rate hikes are to come in 2017. Gold was challenged as sentiment rose that...

To Trend or Not to Trend

"To Trend or Not to Trend" - 10:00AM Need we say more? Andrew Strasman, Totem Asset Group (CTA) leads a panel discussion which opens with a review of the "40in20out.com" academic project. Traders and others from the investment community will share their thoughts on the pros and cons of this approach to trading. If you are already involved in, or just thinking about getting into the managed futures world, you will benefit from including this panel in your day with the NIBA. To get the most out of the discussion, do your homework before the session -- take a quick review of this recent article in Modern Trader magazine:http://www.futuresmag.com/2016/06/19/buy-high-sell-low. Panelists include: Brett Barker, B-Con, Family Office Peter Keegan, Kottke & Associates (IB/CTA/CPO) Stephen Klein, Abingdon Global (CTA) Emil Van Essen, Emil Van Essen, Inc. (CTA)

NIBA Wedbush Futures FCM Risk Management Questionnaire

NIBA will be featuring a recurring article in its monthly newsletter to membership with a focus on FCM Risk Management. The article will feature a different Member FCM each month discussing their approach to risk management. FCM Name: Wedbush Futures Head of Risk Name: Jim Kearney Do you have a risk committee: Yes If yes, what matters does your risk committee consider: The Wedbush Futures Risk Committee regularly meets to identify current risk events, define appropriate client and firm limits and mitigate the effect of future risk events on capital deposits. What is your general approach to risk management: Our risk management philosophy encompasses three concepts, identify risk, measure risk and manage risk. Every policy, procedure and process is designed to advance this philosophy. We strive to build a best in class risk management structure in all of our lines of business. How is pre-trade risk management handled: All of...

NIBA FCM Risk Management Series

The NIBA is proud to introduce a new article series focused on FCM Risk management. This new featured series will appear monthly in the NIBA newsletter and will feature a different member FCM each month discussing their approach to risk management. Risk management affects every part of our industry from trading to regulatory considerations to cyber security and much more. The NIBA listens to what you have to say and in an effort to continue to keep our members well informed and to promote a productive dialogue within the industry we are excited to premier this series beginning in our May newsletter. The articles will feature a Q & A with each member FCM discussing various aspects of risk management. Our member FCMs will discuss topics such as how their risk committees function, what the firm’s approach to cyber security is, what credit review processes are like, and plenty of...

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