INTL FCStone Acquires Fillmore Advisors

INTL FCStone announced this morning that it is acquiring outsourced trading firm Fillmore Advisors. The financial details of the deal have not been disclosed. The development is set to add a new component to the recently established prime brokerage division of the company.

Back in April, INTL FCStone ventured into the prime brokerage space after identifying an opportunity due to years of consolidation in the space. The company focused on providing a platform for middle-sized hedge funds and other asset managers.

Fillmore Advisors will be an extension of the company’s Prime Broker Prime Broker Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Read this Term offering. The transaction, which is subject to regulatory approval, is effective on closing.

Outsourced Trading

The new acquisition of INTL FCStone is an independent firm and a leading provider of outsourced trading solutions. The company is providing operational consulting to institutional asset managers.

The firm is headquartered in Park City, Utah, and is composed of traders with deep global expertise encompassing both Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term and sell-side experience. Institutional clients will benefit from Fillmore Advisors' comprehensive product coverage offering for equities, FX, credit, rates, and commodities.

Commenting on the news, the Managing Director and Co-Head of the INTL FCStone Prime Brokerage, Michael DeJarnette, said: “Outsourced trading is a rapidly growing segment of prime brokerage services, and the acquisition represents a tremendous opportunity to add a fast-growing leader in outsourced trading solutions as we continue to grow our division.”

Prime Brokerage Synergies

INTL FCStone's prime brokerage division is already delivering to its clients a set of multi-asset services. Aside from the traditional PB service the firm will be able to provide outsourced trading, custody, self-clearing, and introduced clearing services for hedge funds, mutual funds, and family offices.

The division provides a flexible platform to more effectively execute trades, custody, and clearing for U.S. and global equities, options, futures, foreign exchange (FX), and fixed income through INTL FCStone.

Commenting on the news, the Partner and CEO of Fillmore Advisors Andrew Caplan, shared that the company would continue to partner with its existing clients.