INTL FCStone 2014 Annual Report Download - page 19

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INTL FCSTONE INC. Form 10K 3
PART I
ITEM 1 Business
Available Information
Our internet address is www.intlfcstone.com. Our annual reports
on Form 10-K, quarterly reports on Form 10-Q, current reports
on Form 8-K, statements of changes in beneficial ownership and
press releases are available in the Investor Relations section of
this website. Our website also includes information regarding
our corporate governance, including our Code of Ethics, which
governs our directors, officers and employees.
Capabilities
Clearing and Execution
We provide 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 worldwide, and are a member
of all major United States (“U.S.”) and European commodity
exchanges. We provide global payments and treasury services in
more than 150 countries to a broad array of commercial customers,
including financial institutions, multi-national corporations, and
governmental and charitable organizations.
Advisory Services
We provide value-added advisory services in a variety of financial
markets by working with commercial clients to systematically
identify and quantify exposures to commodity price risks. We
then develop strategic plans to effectively 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
We trade in a variety of physical commodities, primarily precious
metals, as well as select soft commodities including various
agricultural oils, animal fats and feed ingredients. We offer
customers efficient off-take or supply services, as well as logistics
management. rough these trading activities, we have the ability
to offer complex hedging structures as part of each physical
contract to provide customers with enhanced price risk mitigation.
OTC / Market-Making
We offer customized and complex solutions in the OTC markets
designed to help customers mitigate their specific market risks.
We offer these solutions on a global basis across many markets,
including virtually all traded commodities, foreign currencies
and interest rates. We integrate this process from product design
through execution of the underlying components of the structured
risk product to transaction reporting and valuation.
We also provide market-making and execution in a variety
of financial 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. These transactions may
be offset simultaneously with another customer or counterparty,
offset with similarly but not identical positions on an exchange,
made from inventory, or aggregated with other purchases to
provide liquidity intra-day, for a number of days, or in some cases
even longer periods (during which fair value may fluctuate). In
addition, in our Clearing and Execution Services segment, we
operate a proprietary foreign exchange desk which arbitrages the
futures and cash markets.