Company Overview of FCStone, LLC
FCStone, LLC, a registered futures commission merchant and clearing member, operates a clearing and execution platform for exchange-traded futures and options contracts in the United States. The company provides risk-management programs and services to dairy producers, processors, and end-users. The company was founded in 2000 and is based in West Des Moines, Iowa. FCStone, LLC operates as a subsidiary of INTL FCStone Inc.
2829 Westown Parkway
West Des Moines, IA 50266
Founded in 2000
Key Executives for FCStone, LLC
President of International Assets Holding Corporation
Executive Vice President and Chief Operating Officer of Clearing Operations
Compensation as of Fiscal Year 2013.
FCStone, LLC Key Developments
CFTC Orders FCStone, LLC to Pay $1.5 Million Civil Monetary Penalty for Failing to Have Risk Controls, in Violation of Supervision Obligations
May 29 13
The Commodity Futures Trading Commission (CFTC) issued an Order filing and simultaneously settling charges against FCStone LLC, a Futures Commission Merchant (FCM) headquartered in New York, for failing to diligently supervise its officers and employees relating to its business as an FCM in violation of Commission Regulation 166.3, 17 C.F.R.166.3 (2008). FCStone failed to implement adequate customer credit and concentration risk policies and controls in 2008 and part of 2009, allowing one account (Account) to acquire a massive options position that it could not afford to maintain. Ultimately, FCStone was forced to take over the Account, and lost approximately $127 million. The CFTC Order requires FCStone to pay a civil monetary penalty of $1.5 million, retain an independent consultant to review its internal controls and procedures, and cease and desist from violating its supervisory obligations. The Order finds that from January 1, 2008 through March 1, 2009, FCStone failed to diligently supervise its officers and employees activities relating to risks associated with its customers accounts, and with the Account, which was primarily controlled by two individuals who traded natural gas futures, swaps, and option contracts. Because FCStone did not have adequate credit and concentration risk policies and controls, the two Account owners accumulated a massive position -- more than 2.5 million relatively illiquid commodity option contracts, which the Account owners could not afford to maintain. After the value of the positions deteriorated over the course of 2008, the Account owners were unable to meet their financial obligations with respect to the Account. As FCMs are required to do in that situation, FCStone assumed the financial obligations to the clearing house that carried the positions. Unable to successfully manage the positions, FCStone ended up suffering $127 million in losses. The Commission found that FCStone violated Regulation 166.3 by failing to diligently supervise in a manner designed to mitigate risks associated with customer accounts, such as the risks arising from unsatisfied margin obligations, negative account balances, and the handling of large relatively illiquid positions.
FCStone, LLC Presents at INTL FCStone's 2012 Outlook Conference, Jun-28-2012 through Jun-29-2012
Jun 14 12
FCStone, LLC Presents at INTL FCStone's 2012 Outlook Conference, Jun-28-2012 through Jun-29-2012. Venue: 230 South LaSalle, Chicago, Illinois, United States. Presentation Date & Speakers: Jun-28-2012, Robert Chesler, Vice President, Food Services. Jun-29-2012, Dave Smoldt, Vice President, Rene Friedman, Vice President, Global Head of Legal and Compliance, Ryan Turner, Risk Manager.
FCStone, LLC Enters into Fourth Amendment to Amended and Restated Credit Agreement with Bank of Montreal and BMO Harris Financing, Inc
Apr 13 12
INTL FCStone Inc. (f/k/a International Assets Holding Corporation), as Guarantor, its subsidiary FCStone Group Inc., as guarantor, and its indirect wholly owned subsidiary FCStone, LLC, as borrower, entered into the Fourth Amendment to Amended and Restated Credit Agreement with Bank of Montreal, as administrative agent, and BMO Harris Financing Inc., as a lender party thereto (the Amendment). The Amendment amends the Amended and Restated Credit Agreement dated as of June 21, 2010, as amended, between the company, the guarantors, the administrative Agent, and the lending parties (the Credit Agreement, together with any Amendments, are hereinafter collectively referred to as the Amended Credit Agreement). The amended termination date of the Amended Credit Agreement is April 11, 2013, or such earlier date as the commitments are terminated pursuant to the Amended Credit Agreement. The Amended Credit Agreement maintains the aggregate amount of all commitments allowed under the Amended Credit Facility at $75,000,000, and amends the termination date as noted above.
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