12 Jul 2013 11:19
KUALA LUMPUR, July 11 (Bernama) -- 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
"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
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 statements.
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 release.
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.
Source : INTL FCStone Inc.
CONTACT: INTL FCStone Inc.
Director of Public Relations
Alla Lapidus / John Norris
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