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2015
ANNUAL REPORT

Table of contents

  • Page 1
    2015 ANNUAL REPORT

  • Page 2
    ... ASSETS (in millions) 2015 2014 2013 $2,848.0 $3,039.7 $5,070.0 2012 2011 $2,632.0 $2,953.0 STOCKHOLDERS' EQUITY (in millions) 2015 2014 2013 2012 2011 $292.6 $313.2 $345.4 $335.4 $397.1 NET ASSET VALUE PER SHARE 2015 2014 2013 2012 2011 $16.50 $15.69 $18.29 $17.46 $21.11 2015 | Annual Report

  • Page 3
    ... 309.7 2012 $448.1 105.3 31.0 5.6 306.2 2011 $398.9 75.4 24.0 6.4 293.1 (a) For all periods presented, the return on average stockholders' equity (from continuing operations) excludes the effects of discontinued operations and net loss attributable to noncontrolling interests. Annual Report | 2015

  • Page 4
    WE OPEN MARKETS 2015 | Annual Report A diversified, global financial services organization, INTL FCStone Inc. provides financial products and advisory and execution services to help our clients access market liquidity, maximize profits and manage risk. Our history and culture of innovation allows ...

  • Page 5
    BY THE NUMBERS Access to 36 Global Exchanges $449 Billion FX Prime Brokerage 1.6 Million OTC... Market Making $624 Million Operating Revenue $102 Million EBITDA 1,200 Employees Globally 100 Million Exchange Contracts Traded Managing Business in more than 130 Countries Annual Report | 2015

  • Page 6
    ...2015 | Annual Report As we look back at the 2015...more effective utilization of our capital resources and more efficient and streamlined service for our clients. We also...to this new regulatory environment. As a result of all of these factors - and of the hard work of our dedicated employees around the...

  • Page 7
    ... employees for their continuing efforts and to our shareholders for their loyalty and support. JOHN RADZIWILL Chairman Compound Growth 2011-2015: 19% 38% 11% 9% OPERATING REVENUES INCOME FROM CONTINUING OPERATIONS, BEFORE TAX STOCKHOLDERS' EQUITY NET BOOK VALUE PER SHARE Annual Report | 2015

  • Page 8
    ... of INTL FCStone's increasing share across the board. During 2015, we expanded our product capabilities and client footprint through the acquisition of the G.X. Clarke rates business. This is a well-respected and recognized business providing value-added trade ideas and principal execution in...

  • Page 9
    ...or 90% in our Commercial Hedging and Clearing and Execution Services segments. To establish the most flexible cost structure to protect our bottom line, we aim to have more than 50% of our total costs as variable and linked to revenue. For 2015, we achieved this objective with 59% of our total costs...

  • Page 10
    ... of the rates business accounting for most ...or when we decide to invest in new capabilities or markets as was the case...services industry to provide execution, market intelligence, advisory services and post-trade clearing services in nearly every asset class...execution capability. 2015 | Annual Report

  • Page 11
    ... to our shareholders, new acquisition opportunities. At ...come. The executive management team would like ...execution, market intelligence, advisory services and post-trade clearing services in nearly every asset class and market globally." SEAN M. O'CONNOR Chief Executive Officer Annual Report | 2015

  • Page 12
    OFFICE LOCATIONS 2015 | Annual Report Headquarters: New York (US) 708 Third Avenue, Suite 1500 New York, NY 10017, USA Tel: +1 212 485-3500

  • Page 13
    ... (AL) +1 251-295-9432 Nashville (TN) +1 615 724-2225 New York (NY) +1 212 766-0100 Omaha (NE) +1 800 228-2316 Orlando (FL) +1 800 541-1977 St. Louis (MO) +1 800 888-4254 Twin Falls (ID) +1 800 635-0821 West Des Moines (IA) +1 800 422-3087 International Offices Asunción (Paraguay) +595 21 624 197...

  • Page 14
    ... regulatory requirements. The Company has instituted a Code of Ethics that demands honest and ethical conduct from all employees. Specific topics covered are conflicts of interest, fair dealing, compliance with regulations and accurate financial reporting. Executives The roles of Chairman and CEO...

  • Page 15
    ...-23554 INTL FCSTONE INC. (Exact name of registrant as specified in its charter) DELAWARE 59-2921318 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 708 Third Avenue, Suite 1500 New York, NY 10017 (Address of principal executive offices) (Zip Code...

  • Page 16
    ... Statements and Supplementary Data 46 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 96 Controls and Procedures 96 Other Information 97 PART III ITEM 10 ITEM 11 ITEM 12 ITEM 13 ITEM 14 98 Directors, Executive Officers and Corporate Governance 98 Executive...

  • Page 17
    ... about Forward-Looking Statements Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are...

  • Page 18
    ...statements of changes in beneficial ownership and press releases are available free of charge 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...

  • Page 19
    ..., Global Payments, Securities, Physical Commodities and Clearing and Execution Services. Commercial Hedging We serve our commercial clients through our team of risk management consultants, providing a high-value-added service that we believe differentiates us from our competitors and maximizes the...

  • Page 20
    ... exchange exposures. - Other - â- â- • LME Metals - Commercial - â- Producers, consumers and merchants of copper, aluminum, zinc, lead, nickel, tin and other ferrous products. Commodity trading advisors and hedge funds seeking clearing and execution of LME and NYMEX/COMEX base metal products...

  • Page 21
    ... cash markets. INTL FCStone Financial Inc. ("INTL FCStone Financial") is a dually registered broker-dealer/FCM and a clearing member of all major U.S. commodity futures exchanges including the Chicago Mercantile Exchange and its divisions: the Chicago Board of Trade, the New York Mercantile Exchange...

  • Page 22
    ... institutional accounts from Tradewire Securities, LLC ("Tradewire Securities"), a Miami-based securities broker-dealer servicing customers throughout Latin America and a wholly owned subsidiary of Tradewire Group Ltd. We transferred these accounts to our broker-dealer subsidiary, INTL FCStone...

  • Page 23
    ...subsidiary of The Bank of New York Mellon Corporation. In relation to security transactions, INTL FCStone Financial does not hold customer funds or directly clear or settle securities transactions. We utilize front-end electronic trading, back office and accounting systems to process transactions on...

  • Page 24
    ... Pty. Ltd. is also subject to a capital adequacy requirements of New Zealand Clearing Limited. The Brazilian Central Bank and Securities and Exchange Commission of Brazil regulates INTL FCStone DTVM Ltda. ("INTL FCStone DTVM"). It is a registered broker-dealer and is subject to a capital adequacy...

  • Page 25
    ..., Ireland, the United Kingdom, Argentina, Brazil, Colombia, Uruguay, Paraguay, Mexico, Nigeria, Dubai, China, South Korea, Hong Kong, Australia and Singapore� We established wholly owned subsidiaries in Uruguay and Nigeria but do not have offices or employees in those countries� INTL FCStone Ltd...

  • Page 26
    ... to our wholly owned subsidiary, FCStone Merchant Services, LLC, for financing traditional commodity financing arrangements and commodity repurchase agreements, committed until May 1, 2016. • a $25.0 million facility available to our wholly owned subsidiary, INTL FCStone Ltd., for short-term...

  • Page 27
    ...involve the purchase, sale or short sale for customers and for our own account of financial instruments, including equity and debt securities, commodities and foreign exchange. These activities are subject to a number of risks, including risks of price fluctuations, rapid changes in the liquidity of...

  • Page 28
    ... fiscal 2015. This...related to human error... As a clearing broker in...account balances and security deposits are insufficient to meet all of their obligations. We act as a principal for OTC commodity and foreign exchange derivative transactions, which exposes us to both the credit... significant resources to...

  • Page 29
    ...in the U.S. and abroad, we are also exposed to clearing member credit risk. Commodities clearing houses require member firms to deposit cash and/or government securities to a clearing fund. If a clearing member defaults in its obligations to the clearing house in an amount larger than its own margin...

  • Page 30
    ...depends, in large part, upon our management team who possess extensive knowledge and management skills with respect to securities, commodities and foreign exchange businesses we operate. The unexpected loss of services of any of our executive officers could adversely affect our ability to manage our...

  • Page 31
    ... reporting obligations. Increased regulatory oversight could also impose administrative burdens on us related to, among other things, responding to regulatory examinations or investigations. We provisionally registered our subsidiary, INTL FCStone Markets, LLC, as a swap dealer on December 31, 2012...

  • Page 32
    ... products, client type re-assessment, investor protection, enhanced conflict of interest and execution policies and increased transparency and reporting. The increased costs associated with compliance, and the changes that will be required in our OTC and clearing businesses, may adversely impact our...

  • Page 33
    ... 3-Legal Proceedings below and Note 11 - Commitments and Contingencies in the Consolidated Financial Statements. or may consolidate to enhance their services and products. New competitors or alliances among competitors may emerge and they may acquire significant market share. We cannot assure you...

  • Page 34
    ...risk of war and other international conflicts and actions by governmental authorities, insurgent...of new products by us or our competitors; • technological innovations by us or our competitors;... officers and employees. Each of our regulators supervises our business activities to monitor compliance ...

  • Page 35
    ...SEC that were issued 180 days or more preceding the end of our fiscal year 2015 that remain unresolved. ITem 2 Properties The Company maintains offices in New York, New York; Winter Park, Florida; West Des Moines, Iowa; Chicago, Illinois; Kansas City, Missouri; St. Louis, Missouri; Jersey City, New...

  • Page 36
    ... The trial of this matter took place, as a test case, during October 2012. The trial court entered a judgment against FCStone, LLC on January 4, 2013. On January 17, 2013, the trial court entered an agreed order, staying execution and enforcement, pending an appeal of the judgment. On March 19, 2014...

  • Page 37
    ...company's stock ("INTL"), S&P 500 Index and NYSe/Arca Securities Broker/Dealer Index 2011 S&P 500 Index 2012 2013 NYSe/Arca Securities Broker/Dealer Index 2014 2015 We have never...restrictions and other relevant factors. Our credit agreements currently prohibit the payment of cash dividends by us. -...

  • Page 38
    ...Net loss attributable to noncontrolling interests Net income attributable to INTL FCStone Inc. common stockholders Earnings per share: Basic Diluted Number of shares: Basic Diluted Selected Balance Sheet Information: Total assets Lenders under loans $ 2015 624.3 122.7 52.7 17.1 431.8 251.1 28.1 13...

  • Page 39
    .... Readers are cautioned that any forward-looking statements are not guarantees of future performance. Overview INTL FCStone Inc. is a diversified, global financial services organization providing financial products and advisory and execution services that help our clients access market liquidity...

  • Page 40
    ... of Commercial Hedging, Global Payments, Securities, Physical Commodities, and Clearing and Execution Services ("CES"). Recent events Affecting the Financial Services Industry The Dodd-Frank Act created a comprehensive new regulatory regime governing the OTC and listed derivatives markets and their...

  • Page 41
    ... of a 5% decline in the average rate per contract due to the overall business mix. Our Physical Commodity segment income declined 2% versus the prior ... statements for fiscal 2014 and 2013 are presented as discontinued operations. We continue to operate the portion of our base metals business related...

  • Page 42
    ... its wholly owned subsidiary, INTL FCStone Securities Inc., and renamed the surviving subsidiary INTL FCStone Financial Inc. INTL FCStone Financial is registered as a broker-dealer with FINRA and is registered as a futures commission merchant with the CFTC and NFA. In connection with the merger of...

  • Page 43
    ... for additional information on activity in each of the segments. borrowings outstanding on the corporate credit facility available for working capital needs resulted in increased expense. Year ended September 30, 2014 Compared to Year ended September 30, 2013 Transaction-based clearing expenses...

  • Page 44
    ... in our Commercial Hedging segment, primarily related to account deficits from a Hong Kong commercial LME customer and Brazilian OTC Financial Ag's & Energy customers. Additionally, we recorded bad debts of $0.9 million in our Physical Commodities segment related to renewable fuels activity in our...

  • Page 45
    .... Professional fees increased $2.5 million, primarily due to consultancy costs for the FCStone risk review, service costs related to our restatement of the 2012 and 2011 consolidated financial statements, and higher legal costs. Depreciation and amortization decreased $0.7 million, primarily due...

  • Page 46
    ... above. The unallocated costs and expenses include certain shared services such as information technology, accounting and treasury, credit and risk, legal and compliance, and human resources and other activities. (in millions) 2015 $ 36.7 23.1 59.8 4.5 13.4 7.6 2.3 5.8 1.1 17.8 52.5 112.3 Year...

  • Page 47
    ... Banking - Asset Management Physical Commodities Components: - Precious metals - Physical Ag's & Energy Clearing and Execution Services Components: - Clearing and Execution Services - FX Prime Brokerage We report our operating segments based on services provided to customers. Net contribution...

  • Page 48
    ... services are designed to quantify and monitor commercial entities' exposure to commodity and financial risk. Upon assessing this exposure, we develop a plan to control and hedge these risks with post-trade reporting against specific client objectives. Our clients are assisted in the execution...

  • Page 49
    ... revenues have been excluded from the calculation of OTC average rate per contract. For information about the assets of this segment, see Note 22 to the Consolidated Financial Statements. Year ended September 30, 2015 Compared to Year ended September 30, 2014 Operating revenues increased...

  • Page 50
    ...-dealer in Argentina where we are active in providing institutional executions in the local capital markets. Following our acquisition of G.X. Clarke effective January 1, 2015, we act as an institutional dealer in fixed income securities, including U.S. Treasury, U.S. government agency and agency...

  • Page 51
    ... was a result of an increase in export financing revenues, as well as increased customer activity in Latin America and Argentina. Investment banking operating revenues increased 1% in fiscal 2014 compared to fiscal 2013, while asset management revenues increased 59% in fiscal 2014 compared to fiscal...

  • Page 52
    ... in the valuation of precious metals inventory held by INTL FCStone Ltd. as well as the presentation of INTL FCStone Ltd.'s precious metals sales and cost of sales. See Note 1 of the Consolidated Financial Statements for further information. Precious metals inventory held by our subsidiaries that...

  • Page 53
    ...'s & Energy product line, related to renewable fuels activity. Variable expenses expressed as a percentage of operating revenues decreased to 23% in fiscal 2014 compared to 25% in fiscal 2013, due to a decrease in variable direct compensation and benefits. Clearing and execution Services We seek to...

  • Page 54
    ... of our customers and the required margin per contract. INTL FCStone Financial is subject to minimum capital requirements under Section 4(f )(b) of the Commodity Exchange Act, Part 1.17 of the rules and regulations of the CFTC and the SEC Uniform Net Capital Rule 15c3-1 under the Securities Exchange...

  • Page 55
    ...Securities segment related to chargeoffs of uncollectible service fees. Additional information related to bad debts, net of recoveries, for the fiscal years ended September 30, 2015, 2014, and 2013 is set forth in Note 5 of the Consolidated Financial Statements. Customer and Counterparty Credit and...

  • Page 56
    ... terms and conditions of the credit agreement. This line of credit is intended to provide short-term funding of margin to commodity exchanges as necessary. • A syndicated borrowing facility, committed until May 1, 2016, under which our subsidiary, FCStone Merchant Services, LLC is entitled to...

  • Page 57
    ... requirements as of September 30, 2015. Additional information on these net capital and minimum net capital requirements can be found in Note 12 of the Consolidated Financial Statements. The Dodd-Frank Act created a comprehensive new regulatory regime governing the OTC and listed derivatives markets...

  • Page 58
    .... In fiscal 2016, we anticipate making contributions of $2.1 million to defined benefit plans. Additional information on the funded status of these plans can be found in Note 15 of the Consolidated Financial Statements. Based upon our current operations, we believe that cash flow from operations...

  • Page 59
    .... Increases in our expenses, such as compensation and benefits, transaction-based clearing expenses, occupancy and equipment rental, due to inflation, may not be readily recoverable from increasing the prices of our services. While rising interest rates are generally favorable for us, to the extent...

  • Page 60
    ...relate to the financial period. The accuracy of capturing this information is dependent upon the completeness and accuracy of data capture of the operations systems and our clearing...are accounted ... tax rates is ...Statements, 'Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit...

  • Page 61
    ... discussed above. Refer to Note 4 to the Consolidated Financial Statements for information on the interest rate swap transactions. The debt instruments are carried at their unpaid principal balance which approximates fair value. As of September 30, 2015, $38.0 million of our debt was variable...

  • Page 62
    ...8 Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm The Board of Directors and Stockholders INTL FCStone Inc.: We have audited INTL FCStone Inc. and subsidiaries' (the Company) internal control over financial reporting as of September 30, 2015, based...

  • Page 63
    ... Statements and Supplementary Data Report of Independent Registered Public Accounting Firm The Board of Directors and Stockholders INTL FCStone Inc.: We have audited the accompanying consolidated balance sheets of INTL FCStone Inc. and subsidiaries (the Company) as of September 30, 2015 and...

  • Page 64
    ...commodities inventory (including precious metals of $15.2 at fair value at September 30, 2015...Accounts payable and other accrued liabilities (including $3.3 and $5.5 at fair value at September 30, 2015 and September 30, 2014) Payable to: Customers Broker-dealers, clearing... financial statements. 1,533...

  • Page 65
    ... Cost of sales of physical commodities Operating revenues Transaction-based clearing expenses Introducing broker commissions Interest expense Net operating revenues Compensation and other expenses: Compensation and benefits Communication and data services Occupancy and equipment rental Professional...

  • Page 66
    ...Statements and Supplementary Data Consolidated Statements of Comprehensive Income (in millions) 2015...compensation and benefits) Realized ...statements. Year Ended September 30, 2014 55.7 $ 19.3 $ (4.0) (1.5) 2.7 - 0.3 (5.4) 2.0 (3.1) (5.9) 49.8 $ (4.6) (0.8) 0.2 - 0.2 (0.1) (0.1) - (5.2) 14.1 $ 2013...

  • Page 67
    ...Cash Flows Statements (in millions) 2015 $ Year ...(9�7) (0�3) 1�4 (0.1) (48.8) $ 2013 19�3 8�0 0�8 (7�8) 1�2 9�3...commodities inventory Other assets Accounts payable and other accrued liabilities Payable to customers Payable to broker-dealers, clearing... related to...benefit on stock options...

  • Page 68
    ...Deferred consideration payable related to acquisitions Escrow deposits related to acquisitions See accompanying notes to consolidated financial statements. Year Ended September 30, 2014 (0.6) (4.3) 36.8 75.2 231.3 156.1 268.1 $ 231.3 $ 15.8 15.3 1.6 1.9 9.6 3.0 $ $ 2013 (0.5) (80.2) 236.3 156...

  • Page 69
    ...2012 Net income Other comprehensive loss Exercise of stock options Share-based compensation Repurchase of stock Stock held in escrow for business combination Balances as of September 30, 2013... September 30, 2015 See accompanying notes to consolidated financial statements. 0.2 0.2 $ 0�2 - Form 10...

  • Page 70
    ... Financial Statements NOTe 1 Description of Business and Significant Accounting Policies INTL FCStone Inc., a Delaware corporation, and its consolidated subsidiaries (collectively "INTL" or "the Company"), form a financial services group focused on domestic and select international markets...

  • Page 71
    ... income statements. The securities, primarily U.S. government obligations and mortgagebacked securities, held by INTL FCStone Financial Inc. ("INTL FCStone Financial"), a subsidiary of the Company, as collateral or as margin have been deposited with exchange-clearing organizations, broker...

  • Page 72
    ... connection with commodity transactions and include gains and losses on open commodity trades as well as securities and other deposits made as required by the Company, the exchange-clearing organizations or other clearing organizations. Customer accounts with credit or positive balances are reported...

  • Page 73
    ...are not readily available. The Company does not elect hedge accounting under the Derivatives and Hedging Topic of the ASC in accounting for derivatives used as economic hedges on its commodities. The Company provides clearing and execution of exchange-traded futures and options on futures for middle...

  • Page 74
    ... of Trade ("CBOT"), the Minneapolis Grain Exchange, the New York Mercantile Exchange ("NYMEX"), the Commodity Exchange, Inc. ("COMEX") Division of the New York Mercantile Exchange, Mercado de Valores de Buenos Aires S.A. ("MERVAL"), the Chicago Mercantile Exchange ("CME") Growth and Emerging Markets...

  • Page 75
    ... ASC. Subsequent to the transfer, INTL FCStone Ltd. precious metals sales and cost of sales are presented on a net basis and included as a component of 'trading gains, net' on the consolidated income statements, in accordance with U.S GAAP accounting requirements for broker-dealers. Precious metals...

  • Page 76
    ...of salaries, incentive compensation, variable compensation, including commissions, related payroll taxes and employee benefits. The Company classifies employees as either risk management consultants / traders, operational or administrative personnel, which includes the executive officers� Variable...

  • Page 77
    ... to have a material impact on the consolidated financial statements. In September 2015, FASB issued ASU No.2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. The amendments in ASU 2015-16 require that an acquirer recognize adjustments to...

  • Page 78
    ... and counterparties • Financial instruments owned and sold, not yet purchased • Physical commodities inventory • Accounts payable and other accrued liabilities • Payable to broker-dealers, clearing organizations and counterparties Fair Value Hierarchy As required by the Fair Value...

  • Page 79
    ...futures and exchange-cleared swaps and options determined by prices on the applicable exchange. Financial instruments owned and sold, not yet purchased include the value of U.S. and foreign government obligations, corporate debt securities, derivative financial instruments, commodities, mutual funds...

  • Page 80
    ..., clearing organizations and counterparties Common and preferred stock and ADRs Exchangeable foreign ordinary equities and ADRs Corporate and municipal bonds U.S. government obligations Foreign government obligations Mortgage-backed securities Derivatives Commodities leases Commodities warehouse...

  • Page 81
    ... and ADRs Corporate and municipal bonds U.S. government obligations Foreign government obligations Derivatives Commodities leases Commodities warehouse receipts Exchange firm common stock Mutual funds and other Financial instruments owned Total assets at fair value LIABILITIES: Accounts payable and...

  • Page 82
    ...Statements and Supplementary Data Information on Level 3 Financial Assets and Liabilities The Company's financial assets at fair value classified within level 3 of the fair value hierarchy as of September 30, 2015...: Common and preferred stock and ADRs $ Corporate and municipal bonds $ 0.7 $ 3.5 4.2...

  • Page 83
    ... December 2012, the Company sold its exchange membership seats in the Board of Trade of Kansas City, Missouri, Inc. ("KCBT"), in connection with the acquisition of the KCBT by Chicago Mercantile Exchange ("CME"). The Company was required to hold these exchange membership seats for clearing purposes...

  • Page 84
    ... statements. At September 30, 2015, the Company had $375 million in notional principal of interest rate ...accounted for as hedges: Exchange-traded commodity derivatives OTC commodity derivatives Exchange-traded foreign exchange derivatives OTC foreign exchange derivatives Exchange-traded interest rate...

  • Page 85
    ... income statements. (in millions) 2015 $ Commodities Foreign exchange Interest rate and equity TBA and forward settling securities Net gains from derivative contracts $ Year Ended September 30, 2014 78.6 $ 65.7 $ 7.5 7.5 3.2 - (5.1) - 84.2 $ 73.2 $ 2013 84.6 11.6 0.1 - 96.3 Credit Risk...

  • Page 86
    ... in the Commercial Hedging segment, and the direct write-offs were primarily related to investment banking advisory services in the Securities segment. Activity in the allowance for doubtful accounts and notes for the years ended September 30, 2015, 2014, and 2013 was as follows: (in millions...

  • Page 87
    ...Statements and Supplementary Data NOTe 7 Property and equipment, Net Property and equipment are stated at cost, and reported...Amortization expense related to intangible assets was $1.5 million, $1.6 million, and $2.2 million for the fiscal years ended September 30, 2015, 2014, and 2013, respectively....

  • Page 88
    ... 30, 2015. FCStone Merchants paid minimal debt issuance costs in connection with this credit facility. A syndicated committed borrowing facility established on November 15, 2013, and amended on November 10, 2015, under which $25.0 million is available to the Company's subsidiary, INTL FCStone, Ltd...

  • Page 89
    ... as of September 30, 2015 and 2014: CReDIT FACILITIeS (in millions) Borrower INTL FCStone Inc. FCStone, LLC FCStone, LLC FCStone Merchants INTL FCStone, Ltd Security Certain pledged shares of certain subsidiares None Commodity warehouse receipts Certain commodities assets None Amounts Outstanding...

  • Page 90
    ... now known as INTL FCStone Financial Inc. The CFTC's findings, neither admitted nor denied by us, were that FCStone, LLC violated CFTC Regulation 166.3 in that it failed to diligently supervise its officers' and employees' activities relating to risks associated with its customers' accounts, and in...

  • Page 91
    ... fiscal years ended September 30, 2015, 2014, and 2013, respectively. The expenses associated with the operating leases and service obligations are reported in the consolidated income statements in 'occupancy and equipment rental', 'transaction-based clearing expenses' and 'other' expenses. Future...

  • Page 92
    ...by New Zealand Clearing Limited, and is subject to a capital adequacy requirement. FCStone Commodity Services (Europe), Ltd. is domiciled in Ireland and subject to regulation by the Central Bank of Ireland, and is subject to a net capital requirement. INTL FCStone DTVM Ltda. ("INTL FCStone DTVM") is...

  • Page 93
    ... II ITem 8 Financial Statements and Supplementary Data Additional Information of INTL FCStone Financial Related to Customer Segregated and Secured Funds Pursuant to the requirements of the Commodity Exchange Act, funds deposited by customers of INTL FCStone Financial relating to futures and options...

  • Page 94
    ...benefits' in the consolidated income statements and totaled $3.6 million, $4.3 million and $9.3 million for the fiscal years ended September 30, 2015, 2014, and 2013... a stock option plan for its directors, officers, employees and consultants. The 2013 Stock Option Plan, which was Fair value is...

  • Page 95
    ... year ended September 30, 2013. NOTe 15 Retirement Plans Defined Benefit Retirement Plans The Company has a qualified and a nonqualified noncontributory retirement plan, which are defined benefit plans that cover certain employees. The plans are closed to new employees and frozen with respect to...

  • Page 96
    ... pension cost for the years ended September 30, 2015, 2014, and 2013: 2015 Weighted average assumptions: Discount rate Expected return on assets 4.15% 6.00% Year Ended September 30, 2014 4.60% 7.00% 2013 3.80% 7.00% To account for the defined benefit pension plans in accordance with the guidance in...

  • Page 97
    ...and the rate of return objectives for equity exposure and satisfy the objective of ...stock, U.S. government securities and federal agency obligations, municipal and corporate bonds, and...reporting date. Equity securities did not include any INTL FCStone Inc. common stock as of September 30, 2015...

  • Page 98
    ... in the INTL FCStone Inc. 401(k) Plan ("401(k) Plan"), a defined contribution plan providing retirement benefits, to all domestic employees who have reached 21 years of age, and provided four months of service to the Company. Employees may contribute from 1% to 80% of their annual compensation to...

  • Page 99
    ...: (in millions) 2015 $ $ U.S. International Income from continuing operations, before tax Year Ended September 30, 2014 14.5 $ (13.0) 63.7 39.0 78.2 $ 26.0 2013 $ $ (23.3) 44.5 21.2 Items accounting for the difference between income taxes computed at the federal statutory rate and the provision...

  • Page 100
    ...rates expected to be in effect when taxes are actually paid or recovered. As of September 30, 2015...Minimum Tax credit carryforward of... September 30, 2015, 2014, and 2013 of $17.7...benefit recognized in the consolidated financial statements from such a position is measured based on the largest benefit...

  • Page 101
    ... Clarke & Co. Effective January 1, 2015, the Company acquired all of the partnership interests of G.X. Clarke & Co., an SEC registered institutional dealer in fixed income securities. G.X. Clarke is based in New Jersey, transacts in U.S. Treasury, U.S. government agency and agency mortgage-backed...

  • Page 102
    ... not material to the consolidated financial statements. The intangible assets recognized in this transaction of $0.5 million were assigned to the Clearing and Execution Services segment and were amortized over a 12 month useful life. Forward Insight Commodities LLC In an acquisition agreement dated...

  • Page 103
    ...2012, the Company acquired certain institutional accounts from Tradewire Securities, LLC ("Tradewire Securities"), a Miami-based securities broker-dealer servicing customers throughout Latin America and a wholly owned subsidiary of Tradewire Group Ltd. These accounts were transferred to INTL FCStone...

  • Page 104
    ... the ASC. Subsequent to the transfer, INTL FCStone Ltd.'s precious metals sales and cost of sales are presented on a net basis and included as a component of 'trading gains, net' on the consolidated income statements, in accordance with U.S GAAP accounting requirements for broker-dealers. Precious...

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    ... services are designed to quantify and monitor commercial entities' exposure to commodity and financial risk. Upon assessing this exposure the Company develops a plan to control and hedge these risks with post-trade reporting against specific client objectives. Clients are assisted in the execution...

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    ...services industry in the United Kingdom. Subsequent to the transfer, precious metals inventory held by INTL FCStone Ltd. is measured at fair value, with changes in fair value included as a component of 'trading gains, net' on the consolidated income statement, in accordance with U.S. GAAP accounting...

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    ...17.9 29.7 (8.9) 322.0 $ 2013 202.0 40.9 70.0 42,052.0 121.3 7.2 42,493.4 202.0 40.9 70.0 26.8 121.3 7.2 468.2 163.0 36.7 48.0 23.4 34.1 4.5 309.7 Total revenues: Commercial Hedging Global Payments Securities Physical Commodities Clearing and Execution Services Corporate unallocated Total Operating...

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    ... Commercial Hedging Global Payments Securities Physical Commodities Clearing and Execution Services Corporate unallocated Total $ $ $ Information regarding revenues and operating revenues for the years ended September 30, 2015, 2014, and 2013, and information regarding long-lived assets (defined...

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    ...at September 30, 2015 and 942,973 shares at September 30, 2014 Additional paid-in capital Retained earnings(1) Total INTL FCStone Inc. (Parent...Condensed Balance Sheets and Condensed Statements of Operations of INTL FCStone Inc. - Parent Company Only, the Company has accounted for its investment in ...

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    ... services fees to affiliates Other Total non-interest expenses Loss from continuing operations, before tax Income tax benefit Net loss $ $ $ (2) Within the Condensed Balance Sheets and Condensed Statements of Operations of INTL FCStone Inc. - Parent Company Only, the Company has accounted...

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    PART II SCHeDULe I INTL FCStone Inc. Condensed Statements of Cash Flows SCHeDULe I INTL FCStone Inc. Condensed Statements of Cash Flows Parent Company Only (in millions) 2015 $ (27.7) Year Ended September 30, 2014 $ (26.2) $ 2013 (24.6) Cash flows from operating activities: Net loss Adjustments...

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    ... of our annual or interim financial statements will not be prevented or detected on a timely basis. Management (with the participation of our principal executive officer and principal financial officer) evaluated the Company's internal control over financial reporting as of September 30, 2015, based...

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    PART II ITem 9B Other Information (c) Changes in Internal Control Over Financial Reporting There were no changes in our internal controls over financial reporting that occurred during the quarter ended September 30, 2015 that materially affected, or are reasonably likely to materially affect, our...

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    ... ITem 10 Directors, executive Officers and Corporate Governance PART III ITEM 10 Directors, Executive Officers and Corporate Governance We will include a list of our executive officers and biographical and other information about them and our directors in the definitive Proxy Statement for our 2016...

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    ... relationships and related transactions and director independence in the 2016 Proxy Statement and is incorporated herein by reference. ITEM 14 Principal Accountant Fees and Services Information regarding principal accountant fees and services will be included in the 2016 Proxy Statement and is...

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    ... filed by FCStone Group, Inc. with the SEC on June 12, 2006). INTL FCStone Inc. 2013 Stock Option Plan (incorporated by reference from the Company's Proxy Statement on Schedule 14A filed on January 11, 2013). Employment Agreement, dated October 22, 2002, by and between the Company and Sean O'Connor...

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    ... from the Company's Current Report on Form 8-K filed with the SEC on August 14, 2012). Seventh Amendment to Credit Agreement, made as of April 21, 2015, by and between FCStone Merchant Services, LLC, as Borrower, INTL FCStone Inc., as Guarantor, Bank of Montreal, Chicago Branch, as Administrative...

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    ...Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. INTL FCStone Inc. /S/ SEAN M. O'CONNOR Sean M. O'Connor Chief Executive Officer December 9, 2015 Dated: Pursuant to the requirements of the Securities Exchange...

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    ...Ltda. INTL FCStone Assets, Inc. INTL Netherlands B.V. IFCS de Mexico Asesores Independientes Westown Commodities, LLC Place of Incorporation Iowa, US Nova Scotia, Canada Brazil Delaware Delaware, US Paraguay British Virgin Islands Argentina Uruguay Singapore Nigeria Argentina Argentina Dubai, United...

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    ... 333-197773, and 333-10727 on Form S-8) of INTL FCStone Inc. (the Company) of our reports dated December 9, 2015, with respect to the consolidated balance sheets of the Company as of September 30, 2015 and 2014, and the related consolidated statements of income, comprehensive income, cash flows, and...

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    ... internal controls over financial reporting, or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 9, 2015 /s/ SEAN M. O'CONNOR Sean M. O'Connor Chief Executive Officer or caused such internal controls over financial reporting...

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    ... effectiveness of the registrant's disclosure I, William J. Dunaway certify that: I have reviewed this Annual Report on Form 10-K of INTL FCStone Inc.; Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the...

  • Page 123
    ...-Oxley Act of 2002 In connection with the Annual Report of INTL FCStone Inc. (the Company) on Form 10-K for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Sean M. O'Connor, Chief Executive Officer of the Company, certify...

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    ... Dated: December 9, 2015 /s/ WILLIAM J. DUNAWAY William J. Dunaway Chief Financial Officer In connection with the Annual Report of INTL FCStone Inc. (the Company)...of this written statement required by Section 906, has been provided to INTL FCStone Inc. and will be retained by INTL FCStone Inc. and ...

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    ...contact by mail: 211 Quality Circle, Suite 210 College Station, TX 77845 Corporate Headquarters & Stockholder Relations 708 Third Avenue, Suite 1500 New York, NY 10017, USA Tel: +1 212 485 3500 Stock Listing The Company's common stock trades on NASDAQ under the symbol "INTL". Annual Report | 2015

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