INTL FCStone 2011 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 of the 2011 INTL FCStone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

INTL FCSTONE INC.Form10K 85
PART II
ITEM 8 Consolidated Financial Statements and Supplementary Data
NOTE 15 Capital and Other Regulatory Requirements
e Company’s subsidiary FCStone,LLC is a commodity futures
commission merchant registered with the CFTC servicing
customers primarily in grain, energy and food service-related
businesses. Pursuant to the rules, regulations, and requirements
of the CFTC and other regulatory agencies, FCStone,LLC is
required to maintain certain minimum net capital as defi ned in
such rules, regulations, and requirements. Net capital and the
related net capital requirement may fl uctuate on a daily basis.
Pursuant to the requirements of the Commodity Exchange
Act, funds deposited by customers of FCStone,LLC relating to
futures and options on futures in regulated commodities must be
carried in separate accounts which are designated as segregated
customers’ accounts.
e Company’s subsidiary INTL Trading,Inc. (“INTL Trading”)
is a registered broker dealer and member of the Financial
Industry Regulatory Authority (“FINRA”) and is subject to
the SEC Uniform Net Capital Rule 15c3-1. is rule requires
the maintenance of minimum net capital, and requires that the
ratio of aggregate indebtedness to net capital not exceed 15 to 1.
A further requirement is that equity capital may not be withdrawn
if this ratio would exceed 10 to 1 after such withdrawal.
e Company’s subsidiary FCStone Australia Pty Ltd (“FCStone
Australia”) is regulated by the Australian Securities and Investment
Commission and is subject to a surplus liquid funds requirement.
FCStone Australia is also regulated by the New Zealand Clearing
Limited, and is subject to a capital adequacy requirement.
e Company’s subsidiary FCC Investments,Inc. is a registered
broker-dealer and a member of FINRA, and is subject to the
SEC Uniform Net Capital Rule 15c3-1.
e Company’s subsidiaries Risk Management Incorporated and
Hencorp Futures are regulated by the CFTC and the National
Futures Association and are both subject to a minimum capital
requirement.
e Company’s subsidiaries INTLFCStone (Europe) and
INTL Global Currencies Limited are regulated by the Financial
Services Authority (“FSA”), the regulator of the fi nancial services
industry in the UnitedKingdom, and subject to a consolidated
net capital requirement.
e subsidiaries of the Company are in compliance with all of their regulatory requirements as of September30,2011, as follows:
(in millions)
Subsidiary Regulatory Authority Requirement Type
As of September30,2011
Actual
Minimum
Requirement
FCStone,LLC CFTC Net capital $ 116.6 $ 58.7
FCStone,LLC CFTC Segregated funds $ 1,457.5 $ 1,406.6
INTL Trading SEC Net capital $ 2.0 $ 1.0
FCC Investments,Inc. SEC Net capital $ 0.4 $ 0.3
FCStone Australia
Australian Securities and
Investment Commission Net capital $ 3.3 $ 0.8
FCStone Australia New Zealand Clearing Ltd Capital adequacy $ 11.3 $ 3.9
Risk Management Incorporated CFTC Net capital $ 0.7 $ 0.1
Hencorp Futures CFTC Net capital $ 1.8 $ 0.1
INTLFCStone (Europe) FSA Net capital $ 16.3 $ 4.2
FCStone Europe Central Bank of Ireland Net capital $ 1.1 $ 0.6
INTL Global Currencies Limited FSA Net capital $ 3.1 $ 1.1
Certain other non-U.S. subsidiaries of the Company are also subject to capital adequacy requirements promulgated by authorities
of the countries in which they operate. As of September30,2011, these subsidiaries were in compliance with their local capital
adequacy requirements.