INTL FCStone

INTL FCStone Inc. is a financial services organization.  The company operates in six areas: commercial hedging, global payments, securities, physical commodities, foreign exchange and clearing and execution services (CES). The company ranked No. 100 in the 2020 Fortune 500 list of the largest United States corporations by total revenue.[2]

INTL FCStone Inc.
Public
Traded asNASDAQ: INTL
S&P 600 Component
IndustryFinancial services
PredecessorsInternational Assets Holding Corporation, FCStone Group
Founded1924
HeadquartersNew York
Key people
Sean O'Connor, CEO
Bill Dunaway, Chief Financial Officer
RevenueUS$975.8 million (2019)[1]
US$55.5 million (2019)
Total equityUS$505.3 million (2019)
Number of employees
1,700 (2019)
Websitewww.intlfcstone.com

History

INTL FCStone Inc. began as a door-to-door egg wholesaler that eventually grew into a butter and egg broker known as Saul Stone and Company. Saul Stone fled persecution in his homeland, Russia, and settled in Chicago in 1921. In 1924, Stone started selling farm wares. Eventually, he moved into hedging futures contracts and dealing in a variety of commodity contracts. In 1938, his firm became a member of the Chicago Mercantile Exchange. In 1946 it was incorporated as Saul Stone & Co.[3] Decades later, Saul Stone & Co. merged with Farmer’s Commodity Corporation.[4]  After the merger, the new company called itself FCStone Group, Inc.[5]

In 2007, FCStone went public.[6] The company acquired Chicago-based Downes-O’Neil LLC that same year.[7]  In 2008, FCStone acquired Globecot, Inc. and The Jernigan Group, LLC, a brokerage group that worked with global fiber and textile industries.[8][9]  In 2009, International Assets Holding Corporation (IAHC) and FCStone Group merged to become INTL FCStone.[10] Diego Veitia, who also helped found the Costa Rica Stock Exchange, founded IAHC.  Veitia served as a Chairman with INTL FCStone.[11]

The new company acquired Hanley Group Ltd in 2010.[12]  Hanley was a leading provider of over-the-counter (OTC) products.  It was combined with FCStone’s existing OTC trade desk, allowing the company to expand that business segment.  Further expansion happened with a transaction to purchase the futures operation of Miami based Hencorp Group, Hencorp Futures.  Hencorp Futures changed its name to INTL Hencorp Futures and expanded FCStone’s trading commodities to include coffee, sugar, and cocoa.[13]

In 2010, the company partnered with Decisive Farming. INTL provided the organization with Know-Risk ™, a marketing tool that helps farmers customize crop marketing plans based on price triggers and time triggers. [14][15]

The company reached an agreement with Hudson Capital Energy LLC (HCEnergy), a New York based energy risk-management firm, in 2011. INTL’s subsidiary, FCStone LLC, took over HCEnergy’s business and customers. This included HCEnergy’s Swiss subsidiary, HCEnergy Europe GmbH.  The transaction expanded FCStone’s energy risk portfolio to include greater capability in crude oil and refined products.[16]  In 2011, INTL FC Stone also saw the beginning of INTL’s CommodityNetwork.  That year, INTL purchased on-line industry newsletter CoffeeNetwork from Hencorp Group.  A year later, the company announced plans to expand network coverage into the four major commodities: metals, agriculture, energy and softs.[17] It already had cotton and dairy news sites, Globecot News Network and eDairy. The company won the Forex Magnates’s industry award for best liquidity provider.[18]

In 2014, INTL’s subsidiary FCStone LLC acquired Sinclair and Company.  Sinclair, an introducing broker, focused on dairy, grains and livestock markets.  In 2015, INTL finalized a transaction to acquire G.X. Clarke & Co for about $27 million.[19]  G.X. was founded in 1979.  It was registered with the SEC as an institutional dealer in fixed-income securities.

In 2016, the company acquired Sterne Agee.  The sale included Sterne Agee’s clearing business and RIA businesses.  INTL purchased the company from Stifel, just over a year after Stifel bought Sterne Agee as part of a $150 million acquisition.[20]

In late January 2018, an agreement between INTL FCStone Financial, a subsidiary of INTL FCStone, and European platform Allfunds Bank went live.  The agreement gave advisors using FCStone Financial access to thousands of Ucits funds without having to sign individual contracts with each strategies’ manager or distributor.  FCStone Financial was the first US-based clearing firm with access to the Allfunds platform. Allfunds is the largest fund platform in Europe and offers access to more than 57,000 funds from over 1,200 fund managers.[21]

In August 2018, INTL started developing a technological platform for its LME clients.[22]  INTL first started working with London Metal Exchange (LME) in 2011, when it purchased MF Global Holding’s metals unit.[23] The platform would be similar to one created for INTL’s precious metals clients.  That platform is known as PMXecute. It’s a proprietary electronic trading platform that gives clients real-time pricing in both precious metals and foreign exchange.  There is also PMXecute+, which connects consumers and suppliers of physical gold.[24] In December 2018, INTL announced that it would be acquiring GMP's US-based fixed income trading business which was formerly known as Miller Tabak Roberts Securities, LLC.[25][26][27]

In 2019 INTL FC Stone acquired the futures and options brokerage and clearing business of UOB Bullion and Futures limited in Singapore.[28] In April, 2019, INTL FC Stone launched a prime brokerage division.[29] The new division offers clearing services for hedge funds, mutual funds, and family offices.[29] In February 2020, INTL FC Stone announced the acquisition of U.S.-based brokerage GAIN Capital Holdings Inc., primarily known as the operator of retail brands FOREX.com globally and City Index in the UK. The all-cash deal, approved by boards of both companies, was worth about $236 million in equity value.[30][31]

FCStone Group Inc.

Founded in 1978, the firm was known as the Farmers Commodities Corporation until 2002. FCStone Group provided integrated risk management services such as market intelligence and analysis to help commodity traders in industries like agriculture, renewable fuels, energy, food service, carbon credits, and forest products. In 2007, the company went public raising $95 million. FCStone executed more than 100 million derivative contracts in 2008 and was a clearing member on all major US future exchanges. The Group served commercial commodity intermediaries, end-users, and producers around the world. As of Sept. 30th, 2009, FCStone Group operates as a subsidiary of International Assets Holding Corp.[32][33][34]

International Assets Holding Corporation

IAHC began as the International Assets Advisory Corporation in 1981. The company started in Winter Haven, Florida in 1981 and was headed by Diego J. Veitia, a graduate of the Thunderbird School of Global Management. The firm’s initial focus was the private placements of stocks and bonds of foreign companies. IAAC then turned its attention to high-net-worth clients, including individuals and financial institutions, and diversifying their investment portfolios through the sales of equity securities and global debt. In 1987, Veitia created a holding company called International Assets Holding Corporation and went public in 1994. IAHC transitioned into becoming a market maker of international equity securities in the early 2000s and is now a global financial services provider operating through wholly owned subsidiaries in the US, Dubai, Singapore, Argentina, the UK, Brazil, and Uruguay.[35]

Merger

FCStone Group Inc. and the International Assets Holding Corporation merged in 2009. FCStone operates as an independent business unit of IAHC, ceased trading stock on Sept. 30th, and brings over $229.3 million in operation revenues. IAAC officially became INTL FCStone in Feb. 2011.[35] INTL FCStone Inc. serves more than 20,000 accounts in more than 130 countries through a network of 40 offices around the world. Its combined market capitalization is $285 million. Within a month of the merger, IAHC expanded operations to the Pacific Rim with a new office in Sydney, Australia.[35]

Subsidiaries
  • INTL FCStone Ltd: formerly known as INTL FCStone (Europe) Limited, its name was changed in March 2013. It is based in the United Kingdom.[36]
  • INTL FCStone Financial Inc.: formed in 2015 after the merger of three subsidiaries into INTL FCStone Securities Inc.  The three subsidiaries were FCStone, LLC, INTL FCStone Partners LP, and FCC Investments, Inc.[37]
  • INTL FCStone Markets, LLC[38]

Services
  • Risk management advisory
  • Execution of listed futures and options on futures contracts on commodity exchanges
  • Structured over-the-counter (OTC) products in a range of commodities
  • Trading and hedging of precious and base metals
  • Trading of approximately 150 foreign currencies
  • Market-making in international equities
  • Fixed income, and debt origination and asset management[39]

Leadership[40]
  • Sean O’Connor – Chief Executive Officer
  • William Dunaway – Chief Financial Officer
  • John Radziwill – Independent Chairman of the Board
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gollark: Hmm, I wonder if I can horribly abuse z3 for collatz like I abused it for mazes.
gollark: But for applications where you know n < 2^64 you can just hardcode it yourself if you care.

References
  1. https://finance.yahoo.com/quote/INTL/financials?p=INTL
  2. "INTL FCStone | Fortune". Fortune.
  3. "Merc Broker, Israel Backer Saul Stone". tribunedigital-chicagotribune. Retrieved 2018-08-29.
  4. "INTL FCStone's future is fueled by its innovative roots - Decisive Farming". decisivefarming.com. Retrieved 2018-08-29.
  5. "FCStone Group, Inc. - Conversion Overview" (PDF).
  6. "Fcstone Group went public on 2007-03-16 - NASDAQ:FCSX | Crunchbase". Crunchbase. Retrieved 2018-09-06.
  7. "Executive Profile | INTL FCStone Inc. | Michael Antman". www.boardroominsiders.com. Retrieved 2018-09-06.
  8. Editorial, Reuters. "INTL FCStone grows from commodity broking to breaking news". U.S. Retrieved 2018-09-06.
  9. "FCStone's Globecot, Inc. Changes Name to FCStone Fibers and Textiles". Cotton Grower. 2009-04-28. Retrieved 2018-09-06.
  10. Polansek, Tom. "FCStone brokerage boss quits amid stress from regulations -CEO". U.S. Retrieved 2018-09-06.
  11. "INTL FCStone Inc. - MarketsWiki, A Commonwealth of Market Knowledge". www.marketswiki.com. Retrieved 2018-09-06.
  12. "INTL FCStone adds Thomas, Garland to precious metals team". tribunedigital-chicagotribune. Retrieved 2018-09-10.
  13. "International Assets Holding Buys Futures Division Of Hencorp - Quick Facts". RTTNews. Retrieved 2018-09-10.
  14. "How Decisive Farming Hopes to Differentiate Itself in Frothy Digital Ag Space - AgFunderNews". AgFunderNews. 2016-11-03. Retrieved 2018-09-11.
  15. "Renterra's Partnership with Decisive farming - Renterra". www.renterra.ca. Retrieved 2018-09-11.
  16. "INTL FCStone Inc. and Hudson Capital Energy Reach Agreement". msnbc.com. 2011-04-19. Retrieved 2018-09-12.
  17. Editorial, Reuters. "INTL FCStone grows from commodity broking to breaking news". U.S. Retrieved 2018-09-12.
  18. "FCA Approves INTL FCStone's Consolidation of its Foreign Exchange and Execution Business | Finance Magnates". Finance Magnates | Financial and business news. 2014-03-25. Retrieved 2018-09-18.
  19. "INTL FCStone Inc Acquires Fixed Income Dealer G.X. Clarke & Co". Finance Magnates | Financial and business news. 2014-11-13. Retrieved 2018-09-18.
  20. Kelly, Bruce. "Stifel selling off Sterne Agee independent broker-dealer business it acquired last year". www.investmentnews.com. Retrieved 2018-09-19.
  21. "Allfunds enters US offshore market with INTL FCStone deal". Citywire. Retrieved 2018-09-19.
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  23. Thomas, Susan. "INTL FCStone to acquire MF Global's UK metals arm". U.S. Retrieved 2018-09-19.
  24. "Is Gold Overpriced? This Bullish Firm Thinks So". Kitco News. 2017-09-12. Retrieved 2018-09-19.
  25. "INTL FCStone Secures Acquires GMP Securities| Finance Magnates". Finance Magnates | Financial and business news. 2019-01-15. Retrieved 2019-07-17.
  26. "INTL FCStone Fixed Income Group Expands Offerings". Citybizlist. Retrieved 2019-07-17.
  27. "INTL FCStone Inc. Agrees to Acquire GMP's US-based Fixed Income Trading Business, formerly known as Miller Tabak Roberts Securities, LLC". EuroInvestor. Retrieved 2019-07-17.
  28. Gek, Tay Peck (2019-03-19). "UOB Bullion and Futures to sell brokerage and clearing business for US$5m". The Business Times. Retrieved 2019-07-25.
  29. "INTL FCStone launches prime brokerage division". www.securitieslendingtimes.com. Retrieved 2019-07-29.
  30. https://www.financemagnates.com/forex/brokers/intl-fcstone-to-acquire-gain-capital-in-all-cash-deal/
  31. Inc, INTL FCStone (2020-02-27). "INTL FCStone Inc. Agrees to an All-cash Acquisition of GAIN Capital Holdings, Inc. at $6.00 Per Share". GlobeNewswire News Room. Retrieved 2020-03-05.
  32. "INTL FCStone Inc". Yahoo! Finance. Retrieved 22 October 2013.
  33. "Company Overview of FCStone Group, Inc". Bloomberg Businessweek. Retrieved 22 October 2013.
  34. "FCStone Group Inc". Bloomberg. Retrieved 22 October 2013.
  35. Ed Dinger (2010). "International Assets Holding Corporation". 111. International Directory of Company Histories: 244–247. Cite journal requires |journal= (help)
  36. "Terms of Service Violation". www.bloomberg.com. Retrieved 2018-08-30.
  37. "INTL FCStone to Consolidate U.S. Subsidiaries". MarketWatch. Retrieved 2018-08-30.
  38. "CFTC Orders Swap Dealer INTL FCStone Markets, LLC to Pay a $200,000 Civil Monetary Penalty for Failure to Supervise Swaps Trading in Violation of CFTC Regulation 23.602 | U.S. COMMODITY FUTURES TRADING COMMISSION". www.cftc.gov. Retrieved 2018-08-30.
  39. Editorial, Reuters. "${Instrument_CompanyName} ${Instrument_Ric} Company Profile | Reuters.com". U.S. Retrieved 2018-09-05.
  40. Editorial, Reuters. "${Instrument_CompanyName} ${Instrument_Ric} People | Reuters.com". U.S. Retrieved 2018-08-30.
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