CFTC Roundtable: Ownership and Control Report

Melinda SchrammIn my role as Chairman of NIBA, I was invited to represent our organization at the CFTC Staff Roundtable held in Washington, DC on September 16. The topic was OCR (Ownership and Control Report), a proposed regulation scheduled to take effect as early as January 2012. Also present were representatives from several U.S. exchanges, CTAs and a working group associated with FIA.

Among other things, this regulation will require all defined “reporting entities,” a/k/a “root data sources,” to provide increased account ownership and control information, not only at the time of opening, but on a continuing weekly basis in a report filed directly with the CFTC.

If this regulation is approved in its proposed form, all IBs, regardless of the size of the office, type of business transacted or guarantee will be designated by the CFTC as “root data sources.” IBs would not be considered small businesses which might otherwise exempt them from the burdens associated with filing these weekly reports. As a result, this regulation could significantly impact the day-to-day operations of an IB office.

NIBA’s position as I conveyed it to the CFTC is:

•  IBs are “small businesses” as that term is defined in the Regulatory Flexibility Act;

•  As “small businesses” IBs should not be considered or included as a “root data source”;

•  IBs account information is typically controlled by and in possession of their FCM, and;

•  Therefore, IBs should be exempt from filing this weekly report directly with the CFTC.

As this issue continues to develop, I will provide updates to you here on our Website. Please know that NIBA continues its role in protecting and promoting the interests of its IB membership. Finally, this current and important issue will also be discussed during the Rules, Regulations & Your Revenue Session to be held at our annual Member Meeting, November 2, 2010 here in Chicago.



Melinda Schramm, Chairman, NIBA


Melinda Schramm is the Chairperson and Founder of the National Introducing Brokers Association. She can be reached at [email protected] or 312.977.0598.