Futures Industry Association

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FIA Hall of Fame copy.jpg

Futures Industry Association
FIALogoNew.jpg
Founded 1955
Headquarters 2001 Pennsylvania Avenue NW, Suite 600, Washington, D.C. 20006

Image: 180 pixels

Products Advocacy association for futures (and options) industry, reports, publications, conferences
Key People Walt Lukken, President and CEO
Twitter @FIAconnect
youtube FuturesIndustry
facebook FIAConnect
LinkedIn Profile
Web site www.fia.org

The Futures Industry Association (FIA) is a U.S.-based industry advocacy and education organization, providing a range of products and support for members in domestic regulatory affairs. It is the leading global trade organization for the futures, options and centrally cleared derivatives markets, with offices in Brussels, London, Singapore and Washington, D.C.

FIA's primary members are futures commission merchants, while derivatives exchanges, individuals and other affiliated organizations are classified as associate members. All told, the FIA represents more than 360 firms and 28,000 individuals.

The global management team includes regional representatives. Walt Lukken serves as global president and CEO of the organization. Bruce Savage will serve as head of Europe beginning in August 2019 and Bill Herder is head of Asia. Functional heads lead the advocacy, legal, operations and finance teams.

Affiliates of FIA are FIA European Principal Traders Association (FIA EPTA), FIA Japan, FIA Principal Traders Group (FIA PTG), FIA Technology Services (FIA Tech) and the Institute for Financial Markets (IFM).[1]

FIA has been a Contributor-level sponsor of MarketsWiki since 2008.

History[edit]

FIA was founded in New York in 1955 as the Association of Commodity Exchange Firms to provide a discussion forum and means for improving the operating efficiency of the U.S. futures industry, as well as an educational and informational interface with the public. The association expanded in 1973 to include Chicago-based FCMs and changed its name to Futures Industry Association in 1978, relocating to Washington D.C.[2]

While continuing to focus on domestic issues, such as Commodities Futures Trading Commission reauthorization and industry consolidation - including a high-profile stance in the merger of the Chicago Mercantile Exchange and the Chicago Board of Trade[3] - FIA has expanded its global reach, creating FIA Asia in 2006 and increasing co-operation with the European-focused Futures and Options Association.[4] FIA's Futures Hall of Fame, established in 2005, annually recognizes those who have made a mark on the industry.

In January 2010, the FIA formed the FIA Principal Traders Group to represent proprietary trading groups. That move was followed by the formation of the FIA European Principal Traders Association in June 2011. Both are regionally focused non-profits created to provide a forum for firms that trade their own capital to identify and discuss issues confronting their trading community. The groups work to define common positions on public policy issues, improve the public’s understanding of the constructive role played by principal trading groups in the exchange-traded markets and promote cost-effective, equal and transparent access to markets.[5]

Continuing with the organization's increasingly global focus, in June of 2013, the FIA announced an agreement with the Futures and Options Association to form an affiliation of the two organizations under a new structure called FIA Global. This new structure is intended to enable the two associations to strengthen their influence on cross-border issues, increase coordination between regions, and express the views of FOA and FIA members.[6]

On August 27, 2015, the boards of FIA, FIA Europe and FIA Asia announced they agreed to formally merge the three associations in the first quarter of 2016, further strengthening its global footprint.[7]

The merger of FIA, FIA Europe and FIA Asia into a single organization took effect on January 8, 2016.[8]

Industry Advocacy[edit]

FIA serves as a liaison between the industry and Congress, the CFTC and other regulators whose activities affect the derivatives markets. FIA staff monitors legislative and regulatory developments, attends CFTC meetings and Congressional hearings, testifies before Congress and regulators and writes comment letters on proposed rules and other issues that impact the industry.

For example, in 2016 FIA filed more than 70 comment letters with regulators around the globe, focusing on such issues as clearing equivalence, MiFID II implementation and capital requirements proposed by the Basel Committee.

On February 17, 2021, the FIA addressed the European Securities and Markets Authority (ESMA) on clearing issues experienced during the pandemic in the spring of 2020, a period when global clearinghouses were challenged by high levels of volatility and sudden increases in margin requirements. Based on earlier research it published in a white paper in October 2020, the FIA made several recommendations for changes to margin models, including improving the design and application of margin floors, which it said would be a tool for controlling procyclicality. Higher margins in a volatile market are procyclical because removing cash from the system may compell investors to sell some of the underlying instrument to make margin calls, or exit positions because they can no longer cover them. [9]

Affiliates[edit]

Affiliates of FIA are FIA European Principal Traders Association (FIA EPTA), FIA Japan, FIA Principal Traders Group (FIA PTG), FIA Technology Services (FIA Tech) and the Institute for Financial Markets (IFM).[10]

FIA Tech is FIA's for-profit software subsidiary which operates four systems: the Electronic Give-Up System (EGUS), Project Atlantis, the Reconcilition Software (eRECS) and OCR Data Service. [11] On June 16, 2021 the FIA announced that ten top clearing firms were investing $44 million to fund FIA Tech's strategic growth. The investors are: ABN AMRO Clearing, Bank of America, Barclays, Citi, Credit Suisse, Goldman Sachs, J.P. Morgan, Morgan Stanley, UBS, and Wells Fargo. FIA will retain an ownership stake in FIA Tech and will continue to serve on its board. Former FIA chair Richard Berliand has agreed to join the board as an independent director.[12]

FIA Japan was formed as a chapter of FIA before FIA became FIA Global. It acts as the Japanese liaison with FIA's Washington headquarters and many of FIA Japan's members are members of FIA.[13]

The IFM is an independent, non-profit affiliate of the Futures Industry Association (FIA)focused on education.

FIA EPTA and FTA PTG are similar advocacy organizations representing proprietary traders. FIA PTG was founded in 2010 has 23 member firms in the Americas.[14][15] FIA EPTA was founded in 2011 and has 28 member firms in Europe.[16]

Membership[edit]

FIA's membership includes more than 350 corporate members. Regular members are futures commission merchants. Associate members include U.S. and international exchanges and clearinghouses, banks, legal and accounting firms, introducing brokers, commodity trading advisors, commodity pool operators and other market users, and information and service providers headquartered in the US and abroad.

Primary members are only clearing members holding customer funds.

Associate members are U.S. and international exchanges and clearinghouses, banks, legal and accounting firms, introducing brokers, commodity trading advisors, commodity pool operators and other market users, and information and service providers headquartered in the U.S. and abroad.

A full list of primary and associate members can be found here.

Data and Publications[edit]

MarketVoice is published bimonthly, except July and August, by FIA for brokerage firm management, futures professionals, active corporate, institutional and individual traders, members of Congress and their staffs, regulatory officials, and domestic and international press.[17]

FIA collects and compiles daily trading volume and open interest data on all domestic and international futures, options on futures and stock indexes, interest rate and currency contracts traded on U.S. securities exchanges. Reports on volume and open interest are made available to FIA members and other industry participants.

In addition to monthly statistics, the volume report includes comparisons with previous year and year-to-date figures. The information is compiled both by exchange and by commodity group, highlighting significant changes. Each January, FIA creates a year-end report which provides information by commodity group for five years and graphically provides more than 20 years of data. In 2016, FIA debuted its SEF Tracker, an interactive data portal for market participants to look at volume and market share trends in interest rate, FX and credit products traded via SEFs.

On October 26, 2020, the FIA added CCP Tracker, an online interactive tool that provides data on the financial resources and risk exposures of derivatives clearinghouses, to its suite of FIA data products. The CCP Tracker covers 10 major clearinghouses in the U.S., Europe and Japan and displays information on initial margins, default fund resources, margin breaches, stress loss exposures and clearing member concentration.

On December 6, 2022, the FIA added ETD Tracker, an online interactive tool "that provides insights on trends in the trading of futures and options on exchanges worldwide." [18]

The organization ccnducted a survey of members ahead of its March 16-18, 2021 Boca-V conference, gathering a total of 274 responses, with 57 percent from the Americas, 31 percent from Europe and the Middle East, and 12 percent from the APAC region. The survey found that two-thirds of the respondents expect trading volume to continue to rise in 2021. It also identified some areas of concern, with the impact of the pandemic remaining a top challenge facing the industry. Second was political risk, followed by technology disruption. Capital requirements, one of the biggest concerns for many firms after the financial crisis, ranked fourth. [19][20]

FIA also offers educational books and courses, ethics and anti-money training, and historical and static industry data through its affiliated nonprofit foundation, the Institute for Financial Markets or IFM.


Leadership[edit]


London Office, Singapore Office, Washington, DC Office

Board of Directors[edit]

Officers:

Board Members:

Asia Advisory Board Members:

Europe Advisory Board Members;

Industry Events[edit]

FIA hosts a number of annual and single-session events and conferences in cities around the world. Events can have a broad industry focus, for example, the annual Futures & Options Expo showcases risk management products, trading tools, books and exchange and technology products as presented by more than 100 U.S. and international companies. Expo also offers a variety of sessions that allow participants to discuss industry trends, hear experts' views on key issues, improve trading skills and learn about new products, systems and practices. The programs include sessions for business, operations and technology professionals, and traders. More than 5,000 people from around the world attend Expo in a typical year ranging from senior staff at brokerage firms and exchanges to professional traders, floor traders, CTAs and CPOs, and individual investors. The first Expo, in a trial run, was held on the CME trading floor in the 1980s.

FIA events can also be much more in-depth and specific, such as the annual Law & Compliance Division Conference, which hosts compliance officers, attorneys and regulators to consider issues affecting the legal and regulatory framework of the derivatives industry.

In 2016, FIA hosted 27 regional and division events, drawing in 9,700 industry professionals from 60 countries and 226 exhibitors.


Office Locations[edit]

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  • WASHINGTON, DC, 2001 Pennsylvania Avenue NW, Suite 600, Washington, D.C. 20006
  • LONDON, Level 28, One Canada Square, Canary Wharf, London E14 5AB
  • BRUSSELS, Office 621, Square de Meeûs 37, 1000 Brussels
  • SINGAPORE, Level 18 Centennial Tower, 3 Temasek Avenue, Singapore 039190

John Lothian News Interviews[edit]

Walt Lukken on the Power of Markets and the FIA’s Agenda

In this video from JLN’s Industry Leader Series, FIA President and CEO Walt Lukken talks about the power of markets and the FIA’s regulatory focuses in 2019.

FIA Hall of Fame copy.jpg

References[edit]

  1. ↑ FIA Affiliates. FIA.
  2. ↑ Futures industry in USA and the role Chicago plays- Jerry Cedicci-Robin Trehan. PRLog.
  3. ↑ Press Release. FIA.
  4. ↑ Press Release. FOA.
  5. ↑ Press Release. FIA.
  6. ↑ FIA press release. Futures Magazine.
  7. ↑ FIA, FIA Europe and FIA Asia Announce Merger Plans. FIA.
  8. ↑ FIA Kicks Off New Year as Single, Global Organization. FIA.
  9. ↑ Revisiting Procyclicality: The Impact of the COVID Crisis on CCP Margin Requirements. FIA.
  10. ↑ FIA Affiliates. FIA.
  11. ↑ FIA Tech. FIA.
  12. ↑ Ten global clearing firms make strategic investment in FIA Tech. FIA.
  13. ↑ FIA Japan. FIA Japan.
  14. ↑ FIA PTG. FIA PTG.
  15. ↑ FIA PTG Annual Reports. FIA PTG Annual Reports.
  16. ↑ FIA EPTA. FIA EPTA.
  17. ↑ Home page. Futures Industry Magazine.
  18. ↑ FIA launches ETD Tracker. FIA.
  19. ↑ FIA survey shows strong outlook for cleared derivatives markets. FIA.
  20. ↑ Fragmentation in derivatives market top concern post-Brexit for fifth of firms. TheTrade.

External links[edit]

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