INTL FCStone 2012 Annual Report Download - page 23
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Please find page 23 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 7
PART I
ITEM 1 Business
a number of widely traded commodities, including co ee, sugar,
cocoa, grains and energy products. e transaction expanded
our portfolio of commodity risk management services to include
a more robust capability in soft commodities, especially co ee,
where Hencorp Futures has established a substantial presence
and reputation globally, and especially in Central and South
America. During 2012, the activities of Hencorp Futures have
been reorganized as a division of FCStone, LLC.
Ambrian Commodities Limited
In August, 2011, we acquired the issued share capital of Ambrian
Commodities Limited (“Ambrian”), the London Metals Exchange
brokerage subsidiary of Ambrian Capital Plc. Following the
acquistion, Ambrian was renamed INTL FCStone (Europe)
Ltd. (“ INTL FCStone (Europe)” ). Ambrian, a non-clearing
LME member, specializes in the development and execution of
risk-management programs designed to hedge price uctuations
in base metals for a wide variety of producers, manufacturers
and fabricators. Ambrian has a niche focus on smaller industrial
clients, including lead recyclers, brass producers, zinc galvanizers,
metal re neries and copper foil producers that use LME futures
and options for hedging raw material costs or output prices.
Certain Assets Purchased from Hudson
Capital Energy, LLC
In April, 2011, we acquired certain assets of Hudson Capital
Energy LLC (“ HCEnergy” ), a New York-based energy risk-
management rm. e transaction expanded the Company’s
energy risk management services to include a more robust
capability in crude oil and re ned products.
Acquisitions made in the 2010 Fiscal Year
During scal year 2010, the Company acquired three separate
business groups, Risk Management Incorporated and RMI
Consulting, Inc., Hanley Trading, LLC and related companies
and Provident Group. ese acquisitions were not considered
signi cant on an individual or aggregate basis. e Company’s
consolidated nancial statements include the operating results
of each business from the related dates of acquisition.
RMI Companies
In April, 2010, we acquired Risk Management Incorporated
and RMI Consulting, Inc. (the “RMI Companies”). e RMI
Companies provide execution and consulting services to some of
the largest natural gas consumers in North America, including
municipalities and large manufacturing rms, as well as major
utilities. In addition to its risk-management and brokerage
services, the RMI Companies also o er a wide range of other
programs, including a proprietary on-line energy procurement
platform. e acquisition added extensive and proven expertise
in the natural gas, electricity and related energy markets where
the RMI Companies have a leading presence, as well as a broad
range of long-term relationships with some major organizations.
During 2012, the activities of the RMI Companies have been
reorganized as divisions of FCStone, LLC.
Hanley Companies
In July 2010, we acquired HGC Trading, LLC; HGC Asset
Management, LLC; HGC Advisory Services, LLC; Hanley
Alternative Trade Group, LLC and HGC O ce Services, LLC
(the “Hanley Companies”). Following the acquisition, the
activities of the Hanley Companies were integrated into FCStone
Trading, LLC, which was subsequently renamed INTL Hanley,
LLC, and certain of the Hanley Companies were dissolved.
INTL Hanley, LLC is engaged in the business of acting as
market makers and dealers in exchange traded options and
futures on soft commodities; executing and trading derivatives
on soft commodities in the OTC market; and providing related
advisory services.
Provident Group
In September 2010, the Company acquired certain assets of
Provident Group (“Provident”), a New York based investment
banking and advisory rm. Under terms of the acquisition
agreement, the Company acquired assets and secured the services
of the individual sellers as set forth in the agreement. Provident
is engaged in the business of providing investment banking and
advisory services. Provident plays a critical role in building out
our comprehensive investment banking and advisory platform,
delivering nancing solutions to middle market commercial
customers.
Subsequent Acquisition
In October 2012, the Company reached an agreement in which
Tradewire Securities, LLC, a Miami-based securities broker-
dealer servicing customers throughout Latin America and a
wholly-owned subsidiary of Tradewire Group Ltd., has agreed
to transfer its institutional accounts to INTL FCStone Inc.’s
broker-dealer subsidiary, INTL FCStone Securities. Completion
of this transaction is expected to occur in mid-December 2012.