INTL FCStone 2012 Annual Report Download - page 19
Download and view the complete annual report
Please find page 19 of the 2012 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.INTL FCSTONE INC.Form10K 3
PART I
ITEM 1 Business
Available Information
e Company’s internet address is www.intlfcstone.com.
e Company’s annual reports on Form 10-K, quarterly reports
on Form 10-Q, current reports on Form 8-K, statements of
changes in bene cial ownership and press releases are available
in the Investor Relations section of this website. e Company’s
website also includes information regarding the Company’s
corporate governance, including the Company’s Code of Ethics,
which governs the Company’s directors, o cers and employees.
Capabilities
Clearing and Execution
e Company provides execution services on a wide variety of
technology platforms in a number of markets. We provide clearing
and execution of listed futures and options-on-futures contracts
on all major commodity exchanges throughout the world and are
a member of all major U.S. and European commodity exchanges.
e Company provides global payments and treasury services in
more than 130 countries to a broad array of commercial customers,
including nancial institutions, multi-national corporations, and
governmental and charitable organizations.
Advisory Services
We provide value-added advisory services in a variety of nancial
markets, working with commercial clients to systematically
identify and quantify exposures to commodity price risks and then
developing strategic plans to e ectively manage these risks with a
view to protecting margins and mitigating exposures through our
proprietary Integrated Risk Management Program (“IRMP®”).
We provide commercial customers with a full range of investment
banking services from optimizing the customer’s capital structure
through the issuance of loans, debt or equity securities and advisory
services including mergers, acquisitions and restructurings.
rough our asset management activities, we leverage our specialist
expertise in niche markets to provide institutional investors with
tailored investment products.
Physical Trading
e Company trades in a variety of physical commodities,
primarily precious and base metals as well as select soft
commodities including various agricultural oils, animal fats
and feed ingredients. We o er customers e cient o -take or
supply services, as well as logistics management. rough these
trading activities the Company has the ability to o er complex
hedging structures as part of each physical contract to provide
customers with enhanced price risk mitigation.
OTC / Market Making
e Company o ers customized and complex solutions in the
OTC markets that are designed to help customers mitigate their
speci c market risks. ese solutions are o ered on a global basis
across many markets, including virtually all traded commodities,
foreign currencies and interest rates. is process is integrated from
product design through execution of the underlying components
of the structured risk product.
e Company also provides market making in a variety of
nancial products including commodity options, unlisted
American Depository Receipts (“ADRs”), foreign common
shares and foreign currencies.
Trading Revenues
In our business, we may act as principal in the purchase and sale
of individual securities, currencies, commodities or derivative
instruments with our customers. ese transactions may be
o set simultaneously with another customer or counterparty,
o set with similarly but not identical positions on an exchange,
made from inventory, or may be aggregated with other purchases
to provide liquidity intra-day, for a number of days, or in some
cases, particularly the base metals business, even longer periods
(during which fair value may uctuate). In addition, in our
foreign exchange segment, we operate a proprietary foreign
exchange desk which arbitrages the futures and cash markets.