The Commodity Futures Trading Commission (CFTC) announced today that it has unanimously approved proposed amendments to its regulations to simplify obligations imposed on a self-regulatory organization (SRO) when carrying out its financial surveillance program for futures commission merchants (FCMs). The proposed amendments to Regulation 1.52 revises certain minimum standards that an SRO must maintain in its financial surveillance program over FCMs to ensure their compliance with the CFTC rules and regulations as well as those of the SRO.  The proposal is a result of the CFTC’s Project KISS initiative, which requested public input on simplifying and modernizing the agency’s regulations to…...

CME Group’s Market Regulation Department works to protect the market integrity of all four of its Exchanges – CME, CBOT, NYMEX & COMEX.  Take a look at the “Wash Trades” video below produced by CME.  This is an intro to what to look out for and how to educate yourself about wash trades. These videos are very informative and make for great content when educating new brokers or market participants.  NIBA will be publishing more video content on a regular basis and we encourage our members to utilize these tools on their websites and other mediums....

On May 17, I represented the NIBA at the U.S. House Agricultural Committee Reception hosted by the NFA. This annual event takes during the days NFA holds its board meeting in Washington. Mike Burke and Scott Stewart, IIB representative and GIB representatives respectively were both in DC for these meetings. While in Washington, Mike and I visited with the CFTC to discuss issues suggested by NIBA members. A summary of that meeting will be posted in a future newsletter. Discussions were also held with members of the legislature, the FIA and to further the planning for both our DePaul Symposium…...

The US is not the only part of the world with new regulation to comply with.  The EU has recently put forth the General Data Protection Regulation (GDPR).  If you do not do business in the EU an do not have any customers from that region – this is as far as you need to read.  However, if you do have EU based customers or offices in the EU, please refer to the link below for additional information regarding the GDPR and how it comes into play for your operation.  If you have questions or concerns please feel free to…...

Written by:      Mark E. Ruddy, Esq. Maria Fielding National Futures Association (“NFA”) Stays Virtual Currency Reporting Requirements NFA announced on December 14, 2017 that it would require additional reporting requirements from commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) who are involved in virtual currency transactions and introducing brokers (“IBs”) who accept orders in virtual currency derivatives. On March 27, 2018, NFA released Notice to Members I-18-07 to inform CPOs, CTAs, and IBs that they are currently not required to file the additional reporting requirements previously announced in December 2017. NFA cautioned, however, that it may contact individual firms…...

CME Group’s Market Regulation Department works to protect the market integrity of all four of its Exchanges – CME, CBOT, NYMEX & COMEX.  Take a look at the “Meet the Team” video below produced by CME.  These videos are very informative and make for great content when educating new brokers or market participants.  NIBA will be publishing more video content on a regular basis and we encourage our members to utilize these tools on their websites and other mediums....

Your NIBA representatives will be travelling to Washington D.C. next month to meet with our industry’s top regulators to discuss issues that are important to our membership.  If you have a topic or concern you would like to discuss with NIBA please reach out to us at [email protected]  Part of the NIBAs mission is to be a voice to the brokerage and trading communities and to raise awareness on issues that directly affect the way you conduct business.  Look for a report on our trip in an upcoming compliance edition of NIBAs newsletter....

Have you updated your AML Program to comply with the FinCEN changes going into effect on May 11, 2018? Most Futures Commission Merchants (“FCMs”) have implemented changes to their Anti-Money Laundering Programs (“AML Programs”) in accordance with the Financial Crimes Enforcement Network’s (FinCEN) final rules issued on July 11, 2016. These FinCEN final rules must be incorporated into all FCM and Introducing Broker (“IB”) AML Programs by May 11, 2018. Introducing Brokers will need to fulfill this obligation within their own AML Programs even if they rely on their FCMs for certain aspects of the program. Specifically, these firms will…...

Written by: Mark E. Ruddy, Esq., Maria Fielding National Futures Association (“NFA”) Stays Virtual Currency Reporting Requirements NFA announced on December 14, 2017 that it would require additional reporting requirements from commodity pool operators (“CPOs”) and commodity trading advisors (“CTAs”) who are involved in virtual currency transactions and introducing brokers (“IBs”) who accept orders in virtual currency derivatives. On March 27, 2018, NFA released Notice to Members I-18-07 to inform CPOs, CTAs, and IBs that they are currently not required to file the additional reporting requirements previously announced in December 2017. NFA cautioned, however, that it may contact individual firms…...

On December 14, 2017, NFA issued Notices I-17-28 and I-17-29 requiring commodity pool operators (CPO) and commodity trading advisors (CTA) that execute transactions involving virtual currencies or virtual currency derivatives and introducing brokers (IB) that solicit or accept orders in virtual currency derivatives to immediately notify NFA by amending the firm-level section of the annual questionnaire. NFA reminds CPOs, CTAs and IBs that this is an ongoing obligation. Notices I-17-28 and I-17-29 also described additional reporting requirements for these CPOs, CTAs and IBs. The purpose of this notice is to inform CPOs, CTAs and IBs that NFA is not requiring the filing of this additional information…...