INTL FCStone Modifies Structure of Proposed Relationship With Cleartrade
Exchange Due to Regulatory Environment
NEW YORK and SINGAPORE, July 10, 2013 (GLOBE NEWSWIRE) -- INTL FCStone Inc.
(Nasdaq:INTL) today announced that it does not, in the short term, intend to
acquire an interest in Cleartrade Exchange (CLTX), the commodity futures
exchange headquartered in Singapore.
"Since INTL FCStone's announcement in May 2013 regarding our intention to
acquire a controlling interest in Cleartrade Exchange, an extensive due
diligence and joint strategy process has been undertaken. Despite the success
of this process in terms of verifying CLTX's operational and business
infrastructure, it is with regret that INTL FCStone has determined it is
unable to take any stake in the organization at this time. This change in
strategy is due to the recent publication of further Dodd Frank rules and the
increased complexity and current uncertainty that we see these placing on a
business of this type operating in the U.S.," said Scott Branch, President of
INTL FCStone Inc.
Richard Baker, Chief Executive Officer of Cleartrade Exchange stated:
"Uncertainty associated with recent changes in U.S. regulatory requirements
for Exempt Commercial Markets, which CLTX intends to address through its
application to be registered in the U.S. with the CFTC as a Foreign Board of
Trade (and through interim registration as a Swap Execution Facility), is the
only reason INTL FCStone concluded it could not invest in CLTX at this time."
Branch added, "We continue to be impressed with CLTX as an organization and
hope to build a deeper relationship with the exchange going forward as a
member and liquidity provider. During our diligence process, some
interesting and mutually beneficial business opportunities were identified,
and we plan to work with Cleartrade Exchange to leverage our combined
expertise in developing these."
"Naturally we are disappointed with this outcome," stated Richard Baker, Chief
Executive Officer of Cleartrade Exchange. "At CLTX, we were delighted with the
prospect of INTL FCStone becoming an investor and eventual majority owner in
our business. This result is not what either party intended.Getting to know
INTL FCStone's broad business has, however, been a significant and positive
process for the exchange. I look forward to welcoming them as a member and
continuing our close relationship in the future."
Cleartrade Exchange will not be returning to the market for new investment in
the short term and confirms that it will remain wholly owned by its original
About Cleartrade Exchange
Cleartrade Exchange (CLTX) is a regulated futures market providing an
electronic global marketplace for commodity futures and OTC cleared
derivatives. Cleartrade Exchange is a Recognised Market Operator (RMO)
regulated by the Monetary Authority of Singapore (MAS) and clients include
traders, brokers, banks and hedge funds. The company provides an electronic
orderbook and block trade facility, trade processing and reporting and
straight through processing to multiple clearing houses. Cleartrade Exchange
is incorporated in Singapore with offices in London.
For more information visit: www.thecleartrade.com
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About INTL FCStone Inc.
INTL FCStone Inc. (INTL) provides execution and advisory services in
commodities, currencies and international securities. INTL's businesses, which
include the commodities advisory and transaction execution firm FCStone Group,
serve more than 20,000 customers in more than 100 countries through a network
of offices in twelve countries around the world.
Further information on INTL is available at www.intlfcstone.com.
Forward Looking Statements
This press release includes forward-looking statements including statements
regarding the combined company. All statements other than statements of
current or historical fact contained in this press release are forward-looking
statements. The words "believe," "expect," "anticipate," "should," "plan,"
"will," "may," "could," "intend," "estimate," "predict," "potential,"
"continue" or the negative of these terms and similar expressions, as they
relate to INTL FCStone Inc., are intended to identify forward-looking
These forward-looking statements are largely based on current expectations and
projections about future events and financial trends that may affect the
financial condition, results of operations, business strategy and financial
needs of the company. They can be affected by inaccurate assumptions,
including the risks, uncertainties and assumptions described in the filings
made by INTL FCStone Inc. with the Securities and Exchange Commission. In
light of these risks, uncertainties and assumptions, the forward-looking
statements in this press release may not occur and actual results could differ
materially from those anticipated or implied in the forward-looking
statements. When you consider these forward-looking statements, you should
keep in mind these risk factors and other cautionary statements in this press
These forward-looking statements speak only as of the date of this press
release. INTL FCStone Inc. undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. Accordingly, readers are cautioned not to place undue
reliance on these forward-looking statements.
CONTACT: INTL FCStone Inc.
Director of Public Relations
Alla Lapidus / John Norris
firstname.lastname@example.org / email@example.com
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