Life of a Brokerage Firm

Life of a Brokerage Firm <Part Three> Ron Grossman and Ryan Griffeth conducted as series of interviews discussing the various stages of a brokerage firm.  Interviews are presented here in Q&A form.  The focus of part three is on the exit strategy, or lack thereof, and what firms who have formalized these types of strategies are doing to implement them…

Chairman Letter for February 2013

Dear Members – If you think endless snow storms and wind chills below zero have gotten you pretty far down, don’t even look at the new and proposed regulation discussed below. Over at the NFA, fines are now in place for registrants, including IBs, who are late filing various reports. Fines are in the amount of $1,000 per day! No…

CME Group Market Data Fee FAQ Clarification

CME Group Market Data Fee FAQ In response to the NIBA, the CME Group Market Data Team has submitted the following clarification to its November 12, 2013 notice regarding market data fees: Question: I am an end user, with one software application that has order routing capabilities to multiple broker/FCMs. Do I have to pay the market data fees for…

Chairman’s Letter for December 2013

Chairman’s Article: Dear Members: This month’s issue of the NIBA newsletter focuses on the topic on everyone’s mind — the CME Group market data fee increases. Not surprisingly, none of our members are happy about it. Some even say that added to the industry problems of the past two years, this could be the last straw for their business. On…

Market participants perspective on CME Market Data Fee Increase

The purpose of this letter is to express an opinion regarding the CME’s announcement to increase its market data fees.  Market participants, professional users and brokers alike are largely unaware of what the CME intends to do and how much of an impact it will have on their trading activities and respective businesses.  It should be noted that from a…

Taking Your Questions on New CME Group Market Data Fee Structure for Discussion with CME Group

NIBA Members: You may have received a direct communication from the CME Group or read recent National Introducing Brokers Association (NIBA) LinkedIn posts regarding the exchange’s intent to raise market data fees. As the new policy is currently written, it will affect each of us and our customers. The NIBA has requested a face-to-face meeting with the CME Group in order to…

NFA Board of Directors IB & CTA Representatives panel

It was my privilege to moderate what I think was the most interesting presentation during the NIBA September Conference. I moderated the NFA Board of Directors IB & CTA Representatives  panel. Paul Georgy, GIB, Jeff Malec, IIB, James Koutoulas, CTA and John Roe, CTA all spoke to a packed audience of the NFA registrants they represent. All four panelists are…

Five Ideas of CTA Due Diligence Part 2

In Part 1 of the article Five Ideas of CTA Due Diligence, we discussed several foundational concepts to keep in mind when applying a research due diligence process to a Commodity Trading Advisor.  At the heart of a due diligence process is to understand as much about the manager as possible. A couple of years ago I met a journalism…

Advice for Brokers Selling CTAs

1. Don’t sell anything, ever, that doesn’t have an audited Track Record. If you are selling unaudited investment managers, you are selling fantasy. 2. Don’t sell anything you don’t understand. That’s how people got involved with Madoff. 3. Don’t sell anything you don’t own. Have your lawyer check your contract with your CTA. If it isn’t bullet proof, if you…

Takeaways from the Due Diligence for IBs using CTA Programs Panel

The recent NIBA Conference panel Due Diligence for IBs using CTA Programs proved to be a lively discussion with strong input from the conference participants, which included both CTAs and IBs currently marketing managed futures programs.  A short list of takeaways from the discussion: While CTA databases provide a lot of information on CTAs an IB should verify on their…