NIBA - Celebrating 35 Years

NIBA Journal

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

NIBA Briefings
2 min read

Futures That Don’t Look Like Futures

The Small Exchange launched new futures products that pair the efficiency of futures with the simplicity of stocks, on June 1, 2020. Built on the pillars small, standard, and simple, the Smalls cover everything from stocks and bonds to commodities and foreign exchange in a way that is accessible to the everyday trader. After surveying the current landscape for active investing, CEO Donnie Roberts decided that traditional futures had not evolved to meet the needs of the self-directed trader. Small Exchange futures were designed with ease of use in mind, and they cut out the large notional sizes and inconsistent specifications from traditional futures while providing cost-efficient capital requirements. All products from the Small Exchange have the same minimum tick (0.01 that equates to $1) and expiration (third Friday of the month) to go along with a size that is more manageable than most existing futures contracts. Traders and investors...

By NIBARead article
Uncategorized
2 min read

Chairman's Letter July 2020

Dear Members - As we approach our 30th Anniversary Year, NIBA will look a bit different! Every one of us - IB, CTA, FCM or Service Provider, is crazy busy right now. Working remotely has presented its own challenges and opportunities. NIBA’s mission has always been to make sure you get the information and education you need to meet challenges, recognize opportunities and keep your business growing. NIBA Members have a right to be proud of the Association. At 30-years young, NIBA’s online broker listing is the place potential customers look to when they need a futures or options professional. Additionally, NIBA is among the first to be contacted when regulators want to talk about changes or updates to rules and policies. Although we’re not able to get together at our annual joint DePaul Symposium or catch-up at Rivers with a cocktail after our fall conference, NIBA continues our regular...

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Member Announcements
2 min read

The NYSE FANG+ Index and NYSE FANG+ Index Futures

A Comparison to Other Indexes* The NYSE FANG+ Index is up 27.6% so far in 2020 (as of June 12, 2020) vs. 10.7% for the Nasdaq-100 and -5.9% for the S&P 500 Since the low index levels in mid-March, the NYSE FANG+ Index has rebounded significantly more than the other indexes, rising by 54.4% versus 37.9% for the Nasdaq-100 and 35.9% for the S&P 500 The equal weighting scheme coupled with the strong performance of most NYSE FANG+ stocks have been the major factors in the NYSE FANG+ index’s relative outperformance Eight NYSE FANG+ stocks are in the Nasdaq-100 and seven are in the S&P 500 The NYSE FANG+ Index includes Facebook, Apple, Amazon, Netflix, Google, and five other actively traded growth technology stocks NYSE FANG+ Index futures trade actively on ICE Futures U.S - Find out more… Key Points: Multiple market makers are streaming quotes and providing tight markets...

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Uncategorized
4 min read

Midland Trust on Investor Sentiment

What Midland is seeing? As Director of Business Development at Midland Trust, the question that I am getting from everyone I speak to is, “what are your clients doing?”. Insight into investor sentiment is on everyone’s mind in financial services and wondering if they can still attract investors for their investment product. Midland Trust is a leader in providing IRAs for individuals to invest in alternative investments, such as hedge funds, commodity trading strategies, private equity, venture capital, real estate, and much more. Through all my discussions with investment managers and individual investors, I’m hoping to share some insight that you may find interesting. Back in mid-March when the Covid-19 lockdowns started to heat up and markets tanked, we at Midland didn’t know what to think. We had all the same questions that you had at that time with no idea how to prepare. Over the next couple of weeks...

By NIBARead article
Uncategorized
5 min read

Analysis of CFTC No Action Letter 20-15

Over the past several months, in ways we never could have imagined, our lives and businesses have changed due to the Coronavirus disease, COVID-19. The global pandemic declared in March 2020 by the World Health Organization has wreaked havoc on all lines of businesses, small and large, across the globe. The futures industry is no exception. Our industry is impacted by the state and local mandated quarantines, and the volatile markets resulting from the vast amount of uncertainty. Thanks to swift actions by our regulators, there has been relief provided to some of the regulatory requirements faced by many, if not all, CFTC registrants and NFA Members. One recent action was taken by the Division of Swap Dealer and Intermediary Oversight (“DSIO”) of the CFTC on April 13, 2020 (CFTC Letter No. 20-15) that came about in response to a joint request from the Futures Industry Association and NIBA on...

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Uncategorized
3 min read

NIBA COVID Cyber Security Update by vSEC LLC

The COVID crisis is providing cover and distraction for many cyber attacks. Threats include criminals impersonating the CDC and other official groups to get people to click on links that automatically download malware, fraud attacks that take advantage of market disruptions and ‘Work From Home’ confusion to steal personal information or money, and a general risk that home computers and networks often have fewer security protections than those at work. Here are some suggestions for each. Impersonation Risks You may recognize the person sending you a message (but their email may have been hacked or spoofed), you may recognize the name of the organization (the name may be spoofed), or you may recognize the topic (“emergency credit line request”, “covid test results”). But - be suspicious and be careful. Rather than click on an attachment or link, for public information try to find it yourself via a Google search. Examine...

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Uncategorized
1 min read

NIBA Happenings 2020

Best Wishes for a Healthy and Prosperous New Year from the NIBA! Join us throughout 2020 for educational, informative and actionable events: April 22 - New York Athletic Club, NYC (Register NOW!) July 16 - Joint Symposium/DePaul University, Chicago October 1 - Fall Members Confererence, IIT, Chicago Watch for NIBA Newsletters, Regulatory Updates and White Papers/Articles on the NIBA website - theniba.com, in your email box and on social media. Since 1991, NIBA has represented registered derivatives professionals, providing the education you need to help you service your clients, stay in compliance and grow your businesses. Mark your calendar now to keep learning and growing with the NIBA.

By NIBARead article
1 min read

Watch NFA's latest Board Update Video

Have five minutes? Watch NFA's latest Board Update Video NFA released its latest Board Update Video. This video covers important items from NFA's November Board Meeting, including rulemaking initiatives, enterprise risk management, and new NFA Officer appointments. NFA's quarterly Board Update videos are a way for Members to quickly stay abreast of regulatory obligations and other initiatives. Click here to Watch NFA's November Board Update Video. (Run Time: 3m:14s)

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