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, outsourced trading, custody, and self-clearing and introduced clearing services for hedge funds, mutual funds, and family offices.
The prime brokerage division will leverage 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.
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.
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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.