INTL FCStone 2014 Annual Report Download - page 37

INTL FCSTONE INC.  Form 10K 21
PART I
ITEM 1A Risk Factors
Our stock price is subject to volatility.
e market price of our common stock has been and can be
expected to be subject to fluctuation 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 financial analysts;
•
the operating and stock price performance of other companies;
• general market conditions or conditions specific in specific
markets;
•
conditions or trends affecting 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.
Because of this volatility, we may fail to meet the expectations of
our stockholders or of securities analysts, and the trading prices
of our common stock could decline as a result. In addition, any
negative change in the public’s perception of the securities industry
could depress our stock price regardless of our operating results.
Future sales by existing stockholders could depress the market
price of our common stock. If our stockholders sell substantial
amounts of our common stock in the public market, the market
price of our common stock could fall. Such sales also might make
it more difficult for us to sell equity securities in the future at a
time and price that we deem appropriate.
Our international operations involve special
challenges that we may not be able to meet,
which could adversely affect our financial
results.
We engage in a significant amount of business with customers in
the international markets. Certain additional risks are inherent
in doing business in international markets, particularly in a
regulated industry. ese risks include:
•
the inability to manage and coordinate the various regulatory
requirements of multiple jurisdictions that are constantly
evolving and subject to unexpected change;
•tariffs and other trade barriers;
•
difficulties in recruiting and retaining personnel, and managing
international operations;
•difficulties of debt collection in foreign jurisdictions;
•potentially adverse tax consequences; and
•reduced protection for intellectual property rights.
Our operations are subject to the political,
legal and economic risks associated with
politically unstable and less developed regions
of the world, including the risk of war and
other international conflicts and actions by
governmental authorities, insurgent groups,
terrorists and others.
Specifically, we conduct business in countries whose currencies
may be unstable. Future instability in such currencies or the
imposition of governmental or regulatory restrictions on such
currencies could impede our foreign business and our ability to
collect on collateral held in such currencies.
Our operations are required to comply with the
laws and regulations of foreign governmental
and regulatory authorities of each country
in which we conduct business, and if we
violate these regulations, we may be subject
to significant penalties.
e financial services industry is subject to extensive laws, rules
and regulations in every country in which we operate. Firms that
engage in commodity futures brokerage, securities and derivatives
trading and investment banking must comply with the laws, rules
and regulations imposed by the governing country, state, regulatory
bodies and self-regulatory bodies with governing authority over
such activities. Such laws, rules and regulations cover all aspects
of the financial services business, including, but not limited to,
sales and trading methods, trade practices, use and safekeeping
of customers’ funds and securities, capital structure, anti-money
laundering and anti-bribery and corruption efforts, recordkeeping
and the conduct of directors, officers and employees.
Each of our regulators supervises our business activities to monitor
compliance with such laws, rules and regulations in the relevant
jurisdiction. In addition, if there are instances in which our regulators
question our compliance with laws, rules, and regulations, they
may investigate the facts and circumstances to determine whether
we have complied. At any moment in time, we may be subject to
one or more such investigation or similar reviews. At this time, we
believe all such investigations, and similar reviews are insignificant
in scope and immaterial to us. However, there can be no assurance
that, in the future, the operations of our businesses will not violate
such laws, rules, and regulations and that related investigations and
similar reviews could result in adverse regulatory requirements,
regulatory enforcement actions and/or fines.
Additional legislation, changes in rules, changes in the
interpretation or enforcement of existing laws and rules, or
the entering into businesses that subject us to new rules and
regulations may directly affect our business, results of operations
and financial condition.
We are reviewing the regulatory changes that will be introduced
by the Markets in Financial Instruments Directive (“MIFID 2”)