INTL FCStone Inc. (NASDAQ:INTL), a commodities and FX market maker, has onboarded a new veteran to its FX prime brokerage business which serves a client segment that includes banks, hedge funds, and other buy-side institutions in the $5tn a day global currency market.
According to financial recruitment outlet eFinancialCareers, Lindsay Sine, former branch manager of Goldman Sachs’ prime brokerage unit at Chicago was taken over by the Atlanta-based trading and clearing specialist. She joins Cowen’s executives who have joined INTL FCStone last year to establish its new US prime services business.
FCStone has attracted several brokerage staffers from different locations over the past few months as the company ventures into the space by offering a product that leverages its existing pool of liquidity, collateral and funding capabilities and opens it up to institutional businesses.
New entrants to the prime brokerage market
The service caters to clients who do not have an FX prime broker, or that need additional credit lines to access either liquidity or execution services. The exit of legacy players in the prime brokerage space will allow new offerings, such as FCStone’s product, to rapidly gain customers and fill the void.
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The increase in banking regulation, which mandates increased minimum levels of capital and increases in reporting expenses, has resulted in a lot of banks leaving the prime broking space.
INTL FCStone Financial, through its subsidiaries, is a provider of execution, risk management and advisory services, market intelligence, and clearing services. The origins of the company date back to 1924, and currently serves institutional clients by providing them with access to blue chip international securities and ADRs.
During 2017 alone, the company was attributed a combined $29 billion in OTC trading, which accounted for 15 percent of all OTC value reported.
Last year, investors of commodities trading adviser OptionSellers.com filed loss recovery claims against INTL FCStone as recent volatility in U.S. energy markets caused their accounts to be liquidated.