INTL FCStone 2012 Annual Report Download - page 37
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Please find page 37 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 21
PART I
ITEM 1A Risk Factors
in computing and communications technology are substantially
changing the means by which market-making services are delivered,
including more direct access on-line to a wide variety of services
and information. is has created demand for more sophisticated
levels of customer service. Providing these services may entail
considerable cost without an o setting increase in revenues. In
addition, current and potential competitors have established
or may establish cooperative relationships or may consolidate
to enhance their services and products. New competitors or
alliances among competitors may emerge and they may acquire
signi cant market share.
We cannot assure you that we will be able to compete e ectively
with current or future competitors or that the competitive
pressures we face will not have a material adverse e ect on our
business, nancial condition and operating results.
Our business could be adversely a ected if we
are unable to retain our existing customers or
attract new customers.
e success of our business depends, in part, on our ability to
maintain and increase our customer base. Customers in our
market are sensitive to, among other things, the costs of using
our services, the quality of the services we o er, the speed and
reliability of order execution and the breadth of our service
o erings and the products and markets to which we o er access.
We may not be able to continue to o er the pricing, service,
speed and reliability of order execution or the service, product
and market breadth that customers desire. In addition, once
our risk management consulting customers have become better
educated with regard to sources of risk and the tools available
to facilitate the management of this risk and we have provided
them with recommended hedging strategies, they may no longer
continue paying monthly fees for these services. In addition, the
bankruptcy ling of MF Global and its disclosure of a potential
de ciency in customer segregated futures accounts may negatively
a ect the perception of our industry and our ability to retain
existing customers or attract new customers. Furthermore, our
existing customers, including IRMP customers, are not generally
obligated to use our services and can switch providers of clearing
and execution services or decrease their trading activity conducted
through us at any time. As a result, we may fail to retain existing
customers or be unable to attract new customers. Our failure
to maintain or attract customers could have a material adverse
e ect on our business, nancial condition and operating results.
We rely on relationships with introducing
brokers for obtaining some of our customers.
e failure to maintain these relationships could adversely a ect
our business. We have relationships with introducing brokers
who assist us in establishing new customer relationships and
provide marketing and customer service functions for some of
our customers. ese introducing brokers receive compensation
for introducing customers to us. Many of our relationships with
introducing brokers are non-exclusive or may be canceled on
relatively short notice. In addition, our introducing brokers
have no obligation to provide new customer relationships or
minimum levels of transaction volume. Our failure to maintain
these relationships with these introducing brokers or the failure
of these introducing brokers to establish and maintain customer
relationships would result in a loss of revenues, which could
adversely a ect our business.
Certain provisions of Delaware law and our
charter may adversely a ect the rights of holders
of our common stock and make a takeover of us
more di cult.
We are organized under the laws of the State of Delaware. Certain
provisions of Delaware law may have the e ect of delaying or
preventing a change in control. In addition, certain provisions of
our certi cate of incorporation may have anti-takeover e ects and
may delay, defer or prevent a takeover attempt that a stockholder
might consider in its best interest. Our certi cate of incorporation
authorizes the board to determine the terms of our unissued series
of preferred stock and to x the number of shares of any series of
preferred stock without any vote or action by our stockholders.
As a result, the board can authorize and issue shares of preferred
stock with voting or conversion rights that could adversely a ect
the voting or other rights of holders of our common stock. In
addition, the issuance of preferred stock may have the e ect of
delaying or preventing a change of control, because the rights
given to the holders of a series of preferred stock may prohibit a
merger, reorganization, sale, liquidation or other extraordinary
corporate transaction.
Our stock price is subject to volatility.
e market price of our common stock has been and can be
expected to be subject to uctuation as a result of a variety of
factors, many of which are beyond our control, including:
•actual or anticipated variations in our results of operations;
•announcements of new products by us or our competitors;
•technological innovations by us or our competitors;
•
changes in earnings estimates or buy/sell recommendations
by nancial analysts;
•
the operating and stock price performance of other companies;
•
general market conditions or conditions speci c in speci c
markets;
•
conditions or trends a ecting our industry or the economy
generally;
•
announcements relating to strategic relationships or acquisitions;
and
•risk factors and uncertainties set forth elsewhere in this Form
10-K.