NIBA - Celebrating 35 Years

NIBA Journal

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

2 min read

Be Prepared - Tax Law Impacts

The recently enacted Tax Cuts and Jobs Act (TCJA) has made several changes to the tax law. Below we have summarized some of the changes we feel may affect some of our client base, mainly traders and investors. The TCJA suspended all miscellaneous itemized deductions, subject to a 2% floor, for individuals including investment fees and expenses. Therefore, investors are no longer entitled to these investment expenses. An important thing to note is that the TCJA did not change investment-interest expense rules. The itemized deduction is limited to investment income, and any excess is carried forward to subsequent years. The TCJA also modified carried interest rules for managers. In order to benefit from long term capital gains allocated through profit allocation or carried interest, hedge fund managers must now hold an underlying position in the fund for three years. Normally, long term capital gain requires a one year holding period....

By NIBARead article
4 min read

What is an ISSP

An Introduction for Introducing Brokers Security matters, and the NFA and other financial regulators are pushing to help market participants appropriately protect their customers and themselves against cyber threats which could result in stolen data, compromised systems, and the potential theft of funds or other illegal transactions. An Information Systems Security Program (ISSP) is mandated by the NFA & CFTC for futures market participants including FCMs, CTAs and IBs. An ISSP is a written document that describes the actions a Member takes to protect its systems and data against associated risks. It could save your business. NFA guidance allows Members to adjust ISSP requirements to match their business and operational complexity. Steps include: ● Identify and document critical systems and critical data (e.g., customer information and financial data) ● Document and follow policies and procedures to manage access to critical systems and data (e.g., user access controls and user authentication)...

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Member Announcements
2 min read

Important Changes coming to Illinois STM Insurance Plans

Illinois lawmakers have taken steps to limit the maximum duration of short-term medical plans (STM plans) from 360 days to 180 days. Earlier this year, Gov. Bruce Rauner vetoed a bill that would apply this limitation, but Illinois lawmakers had enough votes to override that veto. Bill SB1737 is due to go into effect on 1/1/2019. The bill states that STM plans can only be for a duration of 180 days. When a STM plan ends there is a mandatory 60 day break before starting another STM plan. United Healthcare and other carriers are stating that any plan that has been signed up before 1/1/19 will be honored for the duration of the contract. The STM contracts in force prior to the implementation of the 180 day duration of the term rule, will be honored for the duration of the term that was written in the members original STM contract....

By NIBARead article
Member Announcements
2 min read

NIBA NYC 2019 Keynote Speaker "Father of Financial Futures"

The NIBA is pleased to announce renowned financial innovator and entrepreneur, Dr. Richard Sandor will deliver the keynote address at our NYC Conference. If you have not yet registered please take a minute to do so as this event tends to fill up quickly. Richard L. Sandor is chairman and chief executive officer of Environmental Financial Products LLC, which specializes in inventing, designing, and developing new financial markets with a special emphasis on investment advisory services. EFP was established in 1998 and was the predecessor company and incubator to the Chicago Climate Exchange (CCX), the European Climate Exchange (ECX) and the Chicago Climate Futures Exchange (CCFE). Dr. Sandor is the author of Good Derivatives: A Story of Financial and Environmental Innovation, published in 2012, and the lead author of Sustainable Investing and Environmental Markets: Opportunities in a New Asset Class, published in 2015 (by World Scientific). His new book “How...

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Member Announcements
1 min read

NIBA Advisory Group

On November 29, the Advisory Group (AG) of the NIBA held its annual meeting at the Union League Club, Chicago. This committee meets one afternoon each year to discuss ideas which are intended to help the NIBA grow and to remain effective and valuable to our members. This year’s meeting overwhelmingly confirmed the Association’s mission of education and recommended several initiatives to the Board of Directors, including new levels of communication between NIBA’s committees and its members. Rodney Dow, The Dow Corp. is the NIBA board member chairing this committee for the third year. Board members Melinda Schramm, Mike Burke, Steve Petillo and Tom Sandy also sit on the AG committee. Thank you to Mark Haraburda, Barchart; Kelly Hartman, CME Group; Mark Shore, Shore Capital Management; and Ginger Szala, Ginger Szala Ink - all of whom rotated off the group after serving three year terms. 2018 Advisory Group Members include:...

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Member Announcements
2 min read

Chairman's Letter - Dec 2018

December got its name from the Latin word decem, meaning ten, because it was originally the tenth month of the year in the Roman calendar which began in March. The winter days following December were not included as part of any month, and later were added to the beginning of the calendar as January and February...but December kept its name. In addition to Hanukkah, celebrated this year from Dec. 2 through Dec. 10 and Christmas, Dec. 25, December brings both National Egg Nog and National Fruitcake Month. The CME Group has completed its acquisition of NEX Group, PLC and its sub-brands including BrokerTec, EBS, Traiana and TriOptima. CME Group announced the acquisition will enable them to provide more efficient access to futures, cash and OTC markets, as well as post-trade services and data offerings which it believes will support more cost-effective trading and risk management. For more information, contact the...

By NIBARead article
5 min read

CFTC & Compliance Issues for 2019

The beginning of a new year is typically when Commodity Futures Trading Commission (“CFTC”) registered, National Futures Association (“NFA”) member firms are most focused on growing their book of business. While the launch of new marketing or trading campaigns is important, attention to shifting operational and regulatory issues is just as critical to running a successful brokerage and/or trading operation. For Futures Commission Merchants (“FCMs”), Introducing Brokers (“IBs”), Commodity Pool Operators (“CPOs”), and Commodity Trading Advisors (“CTAs”) the end of 2018 is the perfect time to take an account of company regulatory obligations. Based on experience with a diverse group of customers and regulatory requirements, the following represents five “hot topic” areas that will impact firms going into 2019. While reviewing this list, keep in mind it is always easier, cheaper, and less painful to be proactive, rather than reactive, when it comes to compliance matters. 1) Anti-Money Laundering Several...

By NIBARead article
Member Announcements
1 min read

NIBA NYC Spring 2019

Planning is well under way for this spring's annual NIBA NYC event.  The date for the event has been set for April 10th and will be held at the prestigious New York Athletic Club in New York City.  Registration is open for this event which tends to fill up quickly so be sure to take a minute and reserve your spot.  This year's planning committee is Mike Burke (mike@highgroundtrading.com), Steve Petillo (spetillo@straitsfinancial.com) and Melinda Schramm (melinda@futuresrep.com).  Please feel free to reach out with suggestions on sessions topics or speakers. Register here for NIBA NYC Spring 2019

By NIBARead article
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