Breaking: INTL FCStone Launches Multi-Asset Prime Brokerage

INTL FCStone has just announced that the company is launching a brand new prime brokerage division. The new subsidiary named INTL FCStone Financial is not going to limit its operations to a single asset class. Instead, the firm’s new offering encompasses trading in the US and global equities, options, futures, FX, and fixed income.

With a full multi-asset solution, the company aims to gain market share in a space that used to be dominated by major investment banks. The company is focusing on Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, outsourced trading, custody, and self-clearing and introduced clearing services for hedge funds, mutual funds, and family offices.

The prime brokerage division will Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term the company’s existing infrastructure to effectively execute trades, custody, and clearing for all major asset classes. The competitive position of the firm is boosted by its full range of financial services and products.

Integrated Self-Clearing

The company highlighted in its official announcement that it will be offering a fully integrated self-clearing and introduced custody and clearing options. INTL FCStone’s platform to combine multiple clearing, execution and EMS/OMS options will also be widely accessible to its clients, as well as multi-custodial risk and enhanced reporting.

Commenting on the news, the Managing Director and Co-Head of the new Prime Brokerage, Douglas Nelson said: “INTL FCStone has long been a leader in clearing and trade execution, and we are pleased to offer firms an accompanying multi-asset prime brokerage option.”

“Our model couples sophisticated technology with direct clearing capabilities, combined with introduced clearing options, to enable clients to evolve without having to establish separate prime relationships. These new services will allow firms operating on legacy systems to benefit from our cutting-edge technology and streamlined cloud-based solutions, providing better service, flexibility, efficiency, and simplicity,” Nelson elaborated.

The new Prime Brokerage team within INTL FCStone Financial Inc. will be based in Atlanta. It will be led by Nelson, Michael DeJarnette, Managing Director and Co-Head, and Nicholas DeJarnette, Managing Director and Co-Head.

The firm has been working on acquiring talent and has recently boosted its team with a key hire. Lindsey Sine joined from Goldman Sachs as Director of Client Services and Onboarding.

“We look forward to growing the division as demand continues to increase for prime brokerage services, especially among midsized hedge funds both domestically and abroad. As we continue to innovate and create specialized offerings for the marketplace, we anticipate that our ability to cross-margin multiple security types will be a large focus for us in the near term,” Nelson concluded.