NEW YORK and SINGAPORE, July 10, 2013 (GLOBE NEWSWIRE) -- INTL FCStone Inc. (Nasdaq:INTL) today announced that it does not, in the short term, intend to acquire an interest in Cleartrade Exchange (CLTX), the commodity futures exchange headquartered in Singapore.
"Since INTL FCStone's announcement in May 2013 regarding our intention to acquire a controlling interest in Cleartrade Exchange, an extensive due diligence and joint strategy process has been undertaken. Despite the success of this process in terms of verifying CLTX's operational and business infrastructure, it is with regret that INTL FCStone has determined it is unable to take any stake in the organization at this time. This change in strategy is due to the recent publication of further Dodd Frank rules and the increased complexity and current uncertainty that we see these placing on a business of this type operating in the U.S.," said Scott Branch, President of INTL FCStone Inc.
Richard Baker, Chief Executive Officer of Cleartrade Exchange stated: "Uncertainty associated with recent changes in U.S. regulatory requirements for Exempt Commercial Markets, which CLTX intends to address through its application to be registered in the U.S. with the CFTC as a Foreign Board of Trade (and through interim registration as a Swap Execution Facility), is the only reason INTL FCStone concluded it could not invest in CLTX at this time."
Branch added, "We continue to be impressed with CLTX as an organization and hope to build a deeper relationship with the exchange going forward as a member and liquidity provider. During our diligence process, some interesting and mutually beneficial business opportunities were identified, and we plan to work with Cleartrade Exchange to leverage our combined expertise in developing these."
"Naturally we are disappointed with this outcome," stated Richard Baker, Chief Executive Officer of Cleartrade Exchange. "At CLTX, we were delighted with the prospect of INTL FCStone becoming an investor and eventual majority owner in our business. This result is not what either party intended. Getting to know INTL FCStone's broad business has, however, been a significant and positive process for the exchange. I look forward to welcoming them as a member and continuing our close relationship in the future."
Cleartrade Exchange will not be returning to the market for new investment in the short term and confirms that it will remain wholly owned by its original investor.
About Cleartrade Exchange
Cleartrade Exchange (CLTX) is a regulated futures market providing an electronic global marketplace for commodity futures and OTC cleared derivatives. Cleartrade Exchange is a Recognised Market Operator (RMO) regulated by the Monetary Authority of Singapore (MAS) and clients include traders, brokers, banks and hedge funds. The company provides an electronic orderbook and block trade facility, trade processing and reporting and straight through processing to multiple clearing houses. Cleartrade Exchange is incorporated in Singapore with offices in London.
For more information visit: www.thecleartrade.com
About INTL FCStone Inc.
INTL FCStone Inc. (INTL) provides execution and advisory services in commodities, currencies and international securities. INTL's businesses, which include the commodities advisory and transaction execution firm FCStone Group, serve more than 20,000 customers in more than 100 countries through a network of offices in twelve countries around the world.
Further information on INTL is available at www.intlfcstone.com.
Forward Looking Statements
This press release includes forward-looking statements including statements regarding the combined company. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words "believe," "expect," "anticipate," "should," "plan," "will," "may," "could," "intend," "estimate," "predict," "potential," "continue" or the negative of these terms and similar expressions, as they relate to INTL FCStone Inc., are intended to identify forward-looking statements.
These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the company. They can be affected by inaccurate assumptions, including the risks, uncertainties and assumptions described in the filings made by INTL FCStone Inc. with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the forward-looking statements in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. When you consider these forward-looking statements, you should keep in mind these risk factors and other cautionary statements in this press release.
These forward-looking statements speak only as of the date of this press release. INTL FCStone Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements.
CONTACT: INTL FCStone Inc. Kent Coughlin Director of Public Relations +1-615-234-2756 firstname.lastname@example.org Cleartrade Exchange Alla Lapidus / John Norris Moonlight Media +44-(0)20-7250-4770 email@example.com / firstname.lastname@example.orgSource:INTL FCStone Inc.