INTL FCStone 2013 Annual Report Download - page 28

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INTLFCSTONEINC.Form10K 7
PART I
ITEM1Business
TRX Futures Limited
In April 2012, our wholly owned subsidiary in the UK, INTL
Holding (UK) Limited, acquired 100% of the outstanding shares
of TRX Futures Limited (“TRX”) from Neumann Grupe GmbH.
TRX was a London-based niche clearing rm for commercial
coee and cocoa customers, as well as energy and nancial
products. During scal 2013, we reorganized the activities of
TRX Futures Limited within INTL FCStone Ltd.
Aporte DTVM
In February 2012, our subsidiaries, INTL Participacoes LTDA
and FCStone do Brasil, acquired 100% of the shares of Aporte
DTVM. Following the acquisition, Aporte DTVM was renamed
INTL FCStone DTVM Ltda. INTL FCStone DTVM Ltda. is
based in Brazil and is a broker-dealer regulated by the Central
Bank of Brazil.
Acquisitions during Fiscal Year 2011
During scal year 2011, we acquired two businesses, Hencorp
Becstone Futures, L.C. and Ambrian Commodities Limited,
and certain assets from Hudson Capital Energy, LLC. ese
acquisitions were not signicant on an individual or aggregate
basis. Our consolidated nancial statements include the operating
results of the two businesses and certain purchased assets from
the related dates of acquisition.
Hencorp Futures
In October 2010, we acquired Hencorp Becstone Futures, L.C.,
the futures operation of Miami-based Hencorp Group, which
we renamed INTL Hencorp Futures, LLC (“Hencorp Futures”).
Hencorp Futures specializes in the development and execution of
risk-management programs designed to hedge price volatility in
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 a substantial presence and reputation
globally, especially in Central and South America. During scal
2012, we reorganized the activities of Hencorp Futures 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 Ltd. Ambrian
was a non-clearing LME member, specializing 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. INTL FCStone Ltd. 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 our energy risk
management services to include a more robust capability in
crude oil and rened products.
Subsequent Acquisition
In November 2013, we received conditional regulatory approval
of an agreement by which First American Capital and Trading
Corp. (“FACT”) agreed to transfer its customer accounts to our
broker-dealer subsidiary, INTL FCStone Securities Inc. FACT
provides correspondent clearing services to institutional customers
directly and through a global network of partners. FACT serves
a wide range of customers, including broker-dealers, investment
advisors, and fund managers. We completed this transaction in
the rst quarter of scal 2014.
Competition
e international commodities and nancial markets are highly
competitive and rapidly evolving. In addition, these markets
are dominated by rms with signicant capital and personnel
resources that are not matched by our resources. We expect these
competitive conditions to continue in the future, although the
nature of the competition may change as a result of ongoing
changes in the regulatory environment. e crisis has produced
opportunities for us to expand our activities and may produce
further opportunities. We believe that we can compete successfully
with other commodities and nancial intermediaries in the