NIBA Journal

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

March 14, 2019

Nanhua-USA joins NIBA

Nanhua-USA is joining the NIBA because they see opportunity in Asia and the US for IBs and CTAs. Nanhua-USA is the first non-bank Chinese FCM to clear at the CME Group and ICE, as well as having full clearing memberships around the globe by its affiliated companies. With China opening its markets, Nanhua USA wants to play an important role in servicing clients on both sides of the Pacific. Nanhua-USA is a full clearing FCM that is starting a CTA incubator program for Asian traders and is open to IB relationships with those interested in the Asian and US market. The parent company, Hangzhou, China-based Nanhua Futures, has over 1.8 Billion USD in capital, with more than 30 offices worldwide, including Hong Kong, Singapore, London and Chicago. Lian Hao, Nanhua USA CEO, is a 20-year veteran in the derivatives industry, spending 11 years at the CME Group where he was...

NIBA Membership

We at the NIBA would like to say thank you to all of our members and to all the derivatives industry participants that have supported the NIBA over the past 27 years. A mission of the NIBA is to create a sense of community for the derivatives industry, which allows us all to share ideas and push forward to a productive and profitable future. We create this community through our three popular conferences each year, our newsletter that shares industry insights written by members and other industry experts, and lobbying on industry issues brought up by our members. To continue the growth of our association, we will need continued support from our members which we receive through annual memberships. To celebrate 25 years, we provided free membership to all IBs and CTAs. This promotion is now ending and annual dues will be charged to all of our members. Your contribution...

Chairman's Letter - March 2018

March 2019 - National Celery Month Paczki Day NIBA is excited to welcome new members: Nanhua USA (FCM); Sudrania Fund Services (Service Provider); and Zilliak Law (Service Provider). March brings changes to policies, rules and regulations that every registered derivatives professional needs to be aware of. First, updates to NFA’s Interpretive Notice regarding ISSPs, including instructions for notifying NFA of a cybersecurity incident go into effect April 1, 2019. Each registrant should review its current policy carefully and make the appropriate updates. During February, the NFA held member workshops to discuss these requirements -- the Notice can be viewed at the NFA’s website. An Interpretive Notice entitled Compliance Rule 2-9: CPO Internal Controls System will also go into effect on April 1. Although the exact system a CPO should adopt will vary according the size and complexity of its operations, this Interpretive Notice lays out certain key components it must...

Crypto/Blockchain Resources

Resources - Cryptocurrencies/Blockchain: Want to learn more about cryptocurrencies and blockchain? Here are a few websites that can help. [table id=12 /] [table id=13 /]

NYC 2019

NIBA Educational Series - Cybersecurity Briefing

The NIBA is pleased to announce the kick off of its educational series. This idea is to cultivate ideas, discussion and networking in an intimate setting throughout the year. This event is hosted and sponsored by Bovill. There’s a gap between Compliance and IT responsibility for security in most organizations. For example, what should an Information System Security Policy cover and how best should it be implemented? We’re delighted to invite you to our briefing and networking event on Wednesday, March 6, 2019, where we will be giving you some tips to help close this gap and discuss challenges with other professionals. Alongside our friends from the NFA and security experts VSEC, we’ll be looking at: Cybersecurity responsibilities of IBs, CTAs, CPOs and FCMs Recent changes in cybersecurity rules and guidelines – for example, new guidelines for event reporting Recent regulatory security enforcements, and what’s expected in 2019. The session...

FANG Market Data Announcement

Trade the top of tech NYSE FANG+™ Index futures Introducing a new market data program NYSE FANG+ Index futures were launched on ICE Futures U.S. in 2017. Comprised of 15 high growth technology stocks, the contract averaged 1,500 contracts/day in 2018 and its momentum continues to grow. Participating market makers maintain a well quoted, liquid market and the product’s commercial success has continued to develop.The unique structure of the index, which consists of some of the largest in tech, has captured the interest of a variety of participants including retail, asset managers, CTAs, institutions, and trading desks. The index composition includes the five staple FANG stocks - Facebook, Apple, Amazon, Netflix and Google (Alphabet) - plus another five actively-traded technology growth stocks - Alibaba, Baidu, NVIDIA, Tesla and Twitter. Equally weighted and reconstituted on a quarterly basis, the contract provides a performance benchmark that allows participants to take advantage of...

Liquidity Insights: Q4 Equity Volatility

Volatility in equities returned in 2018, surprising markets with a spike in February after a remarkably calm 2017. Volatility, however, retreated through the summer before reappearing in the fourth quarter, resulting in some big price moves in major equity indices. Read more.

New York, New York

NIBA’s annual conference, scheduled for April 10, will be held at the New York Athletic Club. The Association has held NY meetings for over 15 years -- this is our 5th year in a row at the historic NYAC. The purpose of all NIBA events is education -- education on changing regulation, on compliance and on business growth for all categories of registered derivatives professionals. A standing room only crowd is expected again this year. Business sessions this year could not be more topical! -Mike Coglianese (Michael Coglianese, CPA) will review changes in federal tax laws effecting all of us; -Mike Phillips (VSEC, LLC) will explain amendments to NFA ISSP requirement and how your firm can comply; - Alison Loughlin (CME Group) discusses how this administration’s tariffs and taxes are affecting the markets and your business; - Dr. Richard Sandor will wrap-up the conference with his views from the past...

NFA Members Meeting - Follow Up

On Feb. 5, 2019, I attended the Annual NFA Members Meeting at NFA offices in Chicago. Maureen Downs, Vice-Chairman of the NFA Board of Directors and Tom Sexton, President and Chief Executive Officer of the NFA along with several executive level members of the NFA staff attended the meeting. I was the only attendee from the industry. The following issues were discussed: ISSP Up-dates (Effective April 1): NIBA members had concerns about the cost of implementing new requirements, third-party vendor liability and whether NFA exams in this area would take the form of education versus enforcement for a period of time after the changes become effective. NFA addressed cost concerns by pointing out that although the requirements are specific, implementation is quite flexible -- it should be tailored to the size, type, etc. of the IB itself. This is not a one-size-fits-all issue. All registrants should conduct due diligence on...

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