NIBA Journal

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

2 min read

CME Advisory Notice

CME Group MRAN 536: Documentation of Customer Orders and Submission of Suspense Accounts on CME Globex Effective on October 1, 2018, and pending all relevant CFTC regulatory review periods, this Market Regulation Advisory Notice will supersede CME Group Market Regulation Advisory Notice RA1605-5R from August 19, 2016. This Advisory Notice sets forth the circumstances under which a suspense account may be submitted on orders entered into CME Globex (“Globex”) and the requirements attendant to proper documentation of such orders. For purposes of this Advisory Notice, a suspense account means a temporary holding account that is submitted at the time of order entry into Globex but prior to the allocation of the executions to the specific accounts on a carrying Clearing Member Firm’s books. With the exception of the section concerning bunched Request for Cross (“RFC”) orders, which is currently in effect, the remainder of this Advisory Notice will become effective...

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3 min read

July Housekeeping, Reminders & Updates

Written by: Mark E. Ruddy, Esq. Maria Fielding National Futures Association (“NFA”) Proposes Virtual Currency Activities Disclosure Requirements NFA submitted an Interpretive Notice to the Commodity Futures Trading Commission (“CFTC”) regarding virtual currency disclosure requirements. Due to the unique nature of virtual currency activities, NFA has determined that customers may not fully understand the nature of and potential risks involved in virtual currency activities. In the notice, NFA also reminds Members of Compliance Rule 2-29, which prohibits the use of any promotional material that is misleading or deceptive; something Members should also consider when drafting virtual currency disclosure materials. Details on the specific proposed disclosure requirements can be found in the Disclosure Requirements for NFA Members Engaging in Virtual Currency Activities Interpretive Notice. CFTC Suggests Security Futures Products (“SFPs”) Rule Update On July 24, 2018, the CFTC released an announcement proposing the update of an outdated 2001 security futures rule...

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CME Updates
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Why Small Cap Indexes Are An Economic Barometer

Remember the Trump bump? The post- 2016 election climb in U.S. equity indexes was signaled first in small cap indexes. The Russell 2000 index of small caps climbed 14.3 percent following the election, its highest post-election climb since its inception in 1979. Small caps represent a snapshot of the U.S. economy since most of the stocks in indexes like the Russell 2000 are domestic. That means they are often the first indexes to respond when major market moving events like a U.S. election occur. “Those small cap U.S. equity stocks have less exposure outside the United States so they’re a good barometer for U.S. economic activity,” Ron Bundy, CEO Benchmarks-North America for FTSE Russell told us in an interview. The Role of the Exchange This barometer role is one reason the Russell’s move to CME Group made waves when it transitioned to the exchange in July 2017. Since then, E-mini...

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Member Announcements
1 min read

On Demand Webinar Series - Interest Rate Trading

This new 4-part on-demand webinar series gives you the insights you want and a better understanding about trading liquid interest rate futures markets. Enjoy instructor-led education at your convenience. The series includes: Treasury Futures 1.0: Understanding the delivery process, basis, carry, net basis and cheapest-to-deliver (CTD) mean. Treasury Futures 2.0: A deeper dive into basis trading, how to use Treasury futures for duration adjustment, and applying futures for yield curve management. STIR Futures 1.0: Everything you need to know about the new 3-month SOFR, fixed nature of basis point value (BPV); contract specifications and the underlying market/index. STIR Futures 2.0: How to hedge interest rate exposure; using STIRS to create synthetic investments; trading Eurodollar-Fed Funds spreads. CLICK HERE FOR ON DEMAND WEBINAR SERIES

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