May 10, 2013 | Uncategorized

IIB Certified Audits–Reporting

After a busy audit season that included many new rules implemented by NFA and CFTC, we would like to share some reminders and insights.

Use of Online Payment Systems

If you are an IB trading Forex and use an online bill payment service such as Paypal, there is an accounting issue we have run into.  Balances that are maintained in these  accounts are not considered current.  They must be considered a “non-current asset” on the balance sheet.  Therefore, the balances in those accounts cannot be included in the Net Capital Computation.


FCM Trading Accounts

Balances maintained in a Futures Commission Merchant trading account not being traded at its value will be considered a security deposit (that is if no other security deposit has been made).  Therefore, 50% of the balance is considered a “non-current asset” and hence, cannot be used in the Net Capital Calculation.


Equity Withdrawal Restrictions

Although this rule is not new, we discovered many of our IBs were unaware of its existence.   As a reminder, you must maintain 120% of the minimum net capital requirement before any equity can be withdrawn from the company.



Anyone trading SWAPS through ICE is now considered as trading under the futures umbrella.  Therefore, these companies are now required to register with NFA.  This registration process was to have been initiated no later than December 31, 2012 with financial statements due to NFA no later than March 31, 2013.  If you are currently pending this registration, it is in your best interest to submit the balance of all required documentation to NFA prior to May 1, 2013 in order to avoid interruption in business.


If you are a GIB interested in moving toward IIB status, please give us a call.  We would be happy to assist in the transition.  Also, if you have any questions regarding this article, feel free to call Mike Coglianese at 630-351-8942 or