Businessweek

ring of customers’ transactions. Clearing involves the matching of customers’ trades with the exchange, the collection and management of margin deposits to support the transactions, and the accounting and reporting of the transactions to customers. The company seeks to utilize its capabilities and capacity by offering facilities management or outsourcing solutions to other FCMs. FCStone, LLC is a registered 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 and the COMEX Division; InterContinental Exchange, Inc. (ICE) Futures US, the Kansas City Board of Trade and the Minneapolis Grain Exchange. Other This segment consists of the company’s asset management and commodity financing and facilitation business. The asset management revenues include fees, commissions and other revenues received by the company for management of third-party assets and investment gains or losses on the company’s investments in funds and proprietary accounts managed either by the company’s investment managers or by independent investment managers. The company operates a commodity financing and facilitation business that makes loans to commercial commodity-related companies against physical inventories, including grain, lumber, meats, energy products and renewable fuels. Sale and repurchase agreements are used to purchase commodities evidenced by warehouse receipts, subject to a simultaneous agreement to sell such commodities back to the original seller at a later date. Additionally, the company, as a principal, engages in physical purchase and sale transactions related to inputs to the renewable fuels and feed ingredient industries. Acquisitions In November 2011, the company acquired The Metals Division of MF Global UK Limited. In November 2011, the company acquired 100% of the ownership interests in Coffee Network LLC (Coffee Network). Following the acquisition, the activities of Coffee Network were reorganized as a division of FCStone, LLC. In April 2012, the company's wholly-owned subsidiary in the UK, INTL Holding (UK) Limited, acquired 100% of TRX Futures Limited (TRX) from Neumann Grupe GmbH. TRX is a London-based niche clearing firm for commercial coffee and cocoa customers, as well as energy and financial products. Subsequent to September 30, 2012, the activities of TRX have been reorganized within INTL FCStone (Europe), and TRX is in the process of dissolution. In February 2012, the company's subsidiaries, INTL Participacoes LTDA and FCStone do Brasil, acquired 100% of INTL FCStone DTVM Ltda., a broker-dealer regulated by the Central Bank of Brazil. Governmental Regulation and Exchange Membership The company is required to comply with a range of requirements imposed by the Commodity Futures Trading Commission, the National Futures Association and the Chicago Mercantile Exchange, which is its designated self-regulatory organization. The company is also a member of the Chicago Mercantile Exchange's divisions: the Chicago Board of Trade, the New York Mercantile Exchange and COMEX, ICE Futures US, ICE Europe Ltd, the Minneapolis Grain Exchange, and the Kansas City Board of Trade. The company is required to comply with a wide range of requirements imposed by the Securities and Exchange Commission, state securities commissions and Financial Industry Regulatory Authority. FCStone Commodity Services (Europe) Ltd. is domiciled in Ireland and subject to regulation by the Financial Regulator of Ireland. INTL FCStone (Europe) is domiciled in the United Kingdom, and subject to regulation by the United Kingdom Financial Services Authority. INTL FCStone Securities, INTL FCStone (Europe) and INTL Commodities, Inc. each have branch offices in the United Kingdom. As a result, their activities are also subject to regulation by the United Kingdom Financial Services Authority. In Argentina, the activities of INTL Gainvest and Compania Inversora Bursatil S.A. Sociedad de Bolsa are subject to regulation by the Comision de Valores and Merval. In Brazil, the activities of FCStone