INTL FCStone 2012 Annual Report Download - page 9

failed methodologies, has allowed us to earn
more revenue from companies looking for high
value-added alternatives.
In addition, during this challenging period, INTL
FCStone made adjustments when necessary
and seized opportunities where possible. At
the beginning of scal year 2012, we acquired
virtually the entire MF Global Metals Division
team – considered by most the crown jewel of
the MF Global operation – following its parent
company’s dissolution. As a direct result of this
acquisition, INTL FCStone was able to upgrade
its status on the London Metal Exchange
to a complete Category One Ring Dealing
Membership. During the year, we also made
substantial investments in other parts of our
London operations, including the acquisition of
the London-based TRX Group, a brokerage and
clearing rm for commercial coee and cocoa
customers that also oered energy and nancial
products.
The TRX purchase was one of several scal year
2012 initiatives designed to consolidate our
industry-leading expertise in soft commodities,
including the acquisition of Coee Network, a
subscription-based news and analysis site that
was consolidated with our existing dairy and
cotton subscription news services to create
Commodity Network; and the expansion of
our agricultural and softs trading capabilities
in Shanghai and in other locations around the
world.
Late in scal year 2012, we announced the
acquisition of the institutional customers of
Tradewire, a Miami-based securities business
with deep and broad institutional relationships
throughout Latin America and Europe. The
transaction was closed in mid-December, 2012.
As part of our Company, this group will now be
able to oer our full range of products, including
securities execution, foreign exchange, futures and
investment banking services.
These acquisitions, as well as our ongoing and
proactive eorts to adjust to the changing
industry landscape, and an ongoing consolidation
of competitors, resulted in record transaction
volumes in our key businesses — despite generally
lower industry volumes — greater awareness of
our services and a record pace of new-account
openings.
Today, INTL FCStone oers a range of capabilities
that is unmatched by any other nancial services
organization in the world, including:
• Strategic risk-management advisory
services for our commercial customer
base to protect and enhance bottom-line
earnings despite volatile nancial and
commodities markets;
• General corporate nance and investment
banking capabilities related to capital
transactions, as well as mergers and
acquisitions, valuations, and other
transactions;
• Clearing, prime brokerage and execution
services for a wide range of exchanges
around the world in all commodity verticals;
• A full spectrum of foreign exchange, global
payments and treasury services;
• A full range of OTC vanilla and structured
products to provide more complex and
customized risk-management solutions for
our customers;
• Physical trading of precious and base
metals and select agricultural products,
including o-take from our customers and
the sourcing of product on their behalf;
• Customer execution in international and
domestic securities.
“As we continue to reap the benets
of our recent acquisitions and an
ongoing consolidation of competitors
in the FCM space, we are likely to see
even greater customer and revenue
growth going forward.”
8 | 2012 INTL FCStone Annual Report