INTL FCStone 2011 Annual Report Download - page 118

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INTL FCSTONE INC.Form10K104
PART II
ITEM 8 Consolidated Financial Statements and Supplementary Data
NOTE 23 Subsequent Event
On November25,2011, INTLFCStone (Europe), the Company’s
wholly owned subsidiary in the UnitedKingdom, arranged with
the trustee of MF Global’s UK operations to acquire the Metals
Division of MF Global UK Limited (in special administration).
As part of the arrangement, the Company has received assignment
of customer accounts and customer account documentation.
Additionally, the Company has hired more than 50 professional
sta from MF Global’s metals trading business based in London.
e Company anticipates that a substantial number of the
customers of this metals trading operation will elect to become
active trading customers of the Company. e purchase price
of this transaction is not material to the consolidated fi nancial
statements of the Company. e Company expects to allocate
equity capital to integrate these brokers and their customers into
the Company’s operations, through a combination of increased
regulatory capital to support the accounts of these customers
and increased compensation and related personnel costs for the
brokers. e amount of the required capital will primarily depend
upon the activity in and balances of the new accounts. As part of
this transaction, INTLFCStone (Europe) has received approval
from the LME to upgrade its LME Category Two membership
to a LME Category One ring dealing membership.