About StoneX Group

StoneX Group Inc. operates a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise. The company strives to be the one trusted partner to its clients, providing the company's network, product and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. The company's businesses are supported by its global infrastructure of regulated operating subsidiaries, and the company's advanced technology platforms. The company's client-first approach differentiates the company from large banking institutions, engenders trust and has enabled the company to establish market leading positions in a number of complex fields in financial markets around the world. The company offers a vertically integrated product suite, beginning with high-touch and electronic access to nearly all major financial markets worldwide, as well as numerous liquidity venues. The company delivers this access through the entire lifecycle of a trade, from deep market expertise and on-the-ground intelligence to best execution and finally post-trade clearing, custody and settlement services. The company serves more than 54,000 commercial, institutional, and global payments clients; and over 400,000 retail accounts located in more than 180 countries. The company's clients include commercial entities, regional, national and introducing broker-dealers, asset managers, insurance companies, brokers, institutional and individual investors, professional traders, commercial and investment banks, as well as government and non-governmental organizations ('NGOs'). The company engages in direct sales efforts to seek new clients, with a strategy of extending the company's services to potential clients that are similar in size and operations to the company's existing client base. In executing this strategy, the company intends to both target new geographic locations and expand the services offered in geographic locations in which the company operates in an effort to increase its market share or where there is an unmet demand for the company's services. Through the company's web and mobile sites, including StoneX.com, StoneXOne.com, FOREX.com, and Cityindex.com the company seeks to attract and onboard new clients generated from digital marketing and brand advertising initiatives. The company also pursues new clients through indirect channels, including the company's StoneX Marketing Partners affiliate program, StoneX.com/marketing partnerships; the company's relationships with introducing brokers, who solicit clients on the company's behalf; and white label partners, who offer the company's services to their clients under their own brand. In addition, the company selectively pursues small- to medium-sized acquisitions, focusing primarily on targets that satisfy specified criteria, including client-centric organizations that may help the company expand into new asset classes, client segments and geographies where the company has a small or limited market presence. Capabilities The company connects its clients to global financial and physical markets and liquidity sources to enable them with efficient access to a broad array of financial and physical products through a combination of high-touch service and digital platforms in pursuit of their business objectives. The company's financial network connects the company's clients to over 40 derivatives exchanges, 185 foreign exchange markets, most global securities exchanges and over 18,000 over-the-counter markets. Execution The company provides trade execution services to the company's clients via both high-touch service and electronically through a wide variety of technology platforms that connect them to markets across the globe. Asset and product types include listed futures and options on futures, equities, mutual funds, ETFs, equity options, foreign currencies, corporate, government and municipal bonds and unit investment trusts. Clearing The company provides competitive and efficient clearing on all major futures exchanges globally. In addition, the company acts as an independent full-service provider of clearing, custody, research and security-based lending products in the global securities markets. The company provides multi-asset prime brokerage, outsourced trading and custody, as well as self-clearing and introduced clearing services for hedge funds, mutual funds and family offices. The company provides prime brokerage services in major foreign currency pairs and swap transactions to institutional clients. Additionally, the company provides clearing of foreign exchange transactions, as well as clearing of a wide range of over-the-counter ('OTC') products. OTC / Market-Making The company offers clients access to the OTC markets for a broad range of traded commodities, global securities, foreign currencies, contracts for difference ('CFD') and interest rate products. For clients with commodity price and financial risk, the company's customized and tailored OTC structures help mitigate those risks by integrating the processes of product design, execution of the underlying components of the structured risk product, transaction reporting and valuation. The company provides market-making and execution in a variety of financial products, including commodity derivatives, unlisted American Depository Receipts ('ADRs') and Global Depository Receipts ('GDRs'), foreign ordinary shares, and foreign currencies. In addition, the company is an institutional dealer in fixed income securities, including the U.S. Treasury, the U.S. government agency, agency mortgage-backed, asset-backed, corporate, emerging market, convertible and high-yield securities. Global Payments The company has built a scalable platform to provide end-to-end global payment solutions to banks and commercial businesses, as well as charities, NGOs and government organizations. The company offers payments services in more than 140 currencies. In this business, the company primarily acts as a principal in buying and selling foreign currencies on a spot basis deriving revenue from the difference between the purchase and sale prices. Through the company's comprehensive platform and its commitment to client service, the company provides simple and fast execution, delivering funds in any of these countries quickly through the company's global network of approximately 375 correspondent banking relationships. Advisory Services The company provides value-added advisory services and high-touch trade execution across a variety of financial markets, including commodities, foreign currencies, interest rates, institutional asset management and independent wealth management. For commercial clients with exposure to commodities, foreign currencies and interest rates, the company works through its proprietary Integrated Risk Management Program ('IRMP') to systematically identify and quantify their risks and then develop strategic plans to effectively manage these risks with a view to protecting their margins and ultimately improving their bottom lines. The company also participates in the underwriting and trading of agency mortgage-backed, commercial mortgage-backed, asset-backed and municipal securities, as well as structured credit in domestic and international markets. Through the company's asset management activities, the company leverages its specialist expertise in niche markets to provide institutional investors with tailored investment products. Through the company's independent wealth management business, the company provides advisory services to the growing retail investor market. Market Intelligence The company's Market Intelligence platform provides its clients with access to deep data and incisive commentary from the company's expert traders and analysts from across the company's global network. This platform focuses on providing local, actionable insights and detailed intelligence from every market the company trades, through the lens of its professionals, who leverage first-hand knowledge and personal connections to deliver a unique advantage for the company's clients. Physical Trading The company acts as a principal to support the needs of the company's clients in a variety of physical commodities, primarily precious metals, as well as across the commodity complex, including energy and renewable fuels, grains, oil seeds, cotton, coffee, cocoa, edible oils and feed products. Through these activities, the company has the ability to offer a simplified risk management approach to the company's commercial clients by embedding more complex hedging structures as part of each physical contract to provide clients with enhanced price risk mitigation. The company also offers clients efficient off-take or supply services, as well as logistics management. Operating Segments The company's business activities are managed through four operating segments, including Commercial, Institutional, Retail, and Global Payments, as follows: Commercial The Commercial segment comprises the activities associated with the identification, management, hedging and monitoring of various commodity and financial risks faced by commercial entities in their business cycles, including risks related to interest rates, foreign exchange, agricultural commodities, energy and renewable fuels, industrial metals, precious metals, and other physical commodities. The company offers its commercial clients a comprehensive array of products and services, including risk management and hedging services, execution and clearing of exchange-traded and OTC products, voice brokerage, market intelligence and physical trading, as well as commodity financing and logistics services. The company's risk management consulting services are designed to quantify and monitor commercial entities' exposure to commodity and financial risk. Upon assessing this exposure, the company develops a plan to control and hedge these risks with post-trade reporting against specific client objectives. The company's clients are assisted in the execution of their hedging strategies through a wide range of products from listed exchange-traded futures and options to basic OTC instruments that offer greater flexibility, to structured OTC products designed for customized solutions and physical contracts. The company's execution and clearing services span virtually all traded commodity markets, with the largest concentrations in agricultural and energy commodities (consisting primarily of grains, energy and renewable fuels, coffee, sugar, cotton, and food service), as well as precious and base metals products. The company also provides execution of foreign currency forwards and options and interest rate swaps, as well as a wide range of structured product solutions to the company's commercial clients who are seeking cost-effective hedging strategies. Generally, the company's clients direct their own trading activity, and the company's risk management consultants do not have discretionary authority to transact trades on behalf of the company's clients. The company provides a full range of physical trading capabilities in precious metals markets providing the company's clients the ability to purchase physical gold and other precious metals, in multiple forms, and in denominations of their choice. In the company's precious metals activities, the company acts as a principal, committing its own capital to buy and sell precious metals on a spot and forward basis. In addition, the company acts as a principal to facilitate financing, structured pricing and logistics services to clients across the commodity complex, including energy and renewable fuels, grains, oil seeds, cotton, coffee, cocoa, edible oils and feed products. The company provides financing to commercial commodity-related companies against physical inventories. Within this segment the company organizes its marketing efforts into client industry product lines, including agricultural, energy and renewable fuels, metals and various other commodities, servicing commercial producers, end users and intermediaries around the world. Institutional The company provides institutional clients with a complete suite of equity trading services to help them find liquidity with best execution, consistent liquidity across a robust array of fixed income products, competitive and efficient clearing and execution in all major futures and securities exchanges globally, as well as prime brokerage in equities and major foreign currency pairs and swap transactions. In addition, the company originates, structures and places debt instruments in the domestic and international capital markets. These instruments include agency mortgage-backed, commercial mortgage-backed, asset-backed and municipal securities, as well as structured credit. Securities The company provides value-added solutions that facilitate cross-border trading in equity securities and the company's clients value its ability to manage complex transactions, including foreign exchange, utilizing the company's local understanding of market convention, liquidity and settlement protocols around the world. The company's clients include the U.S.-based regional and national broker-dealers and institutions investing or executing client transactions in international markets and foreign institutions seeking access to the U.S. securities markets. The company makes markets in more than 16,000 equities on the NYSE, NASDAQ, and various OTC markets, including ETFs and over 7,000 ADRs, GDRs and foreign securities making the company one of the leading market makers in foreign securities. In addition, the company makes prices in more than 10,000 foreign equities listed on foreign exchanges. The company is also a broker-dealer in Argentina, Brazil and in the U.K., where the company is active in providing institutional executions in the local capital markets. The company acts as an institutional dealer in fixed income securities, including the U.S. Treasury, the U.S. government agency, agency mortgage-backed and asset-backed securities, as well as investment grade, high yield, convertible and emerging market debt to a client base, including asset managers, commercial bank trust and investment departments, broker-dealers and insurance companies. The company is an independent full-service provider to introducing broker-dealers ('IBD's') of clearing, custody, research, syndicated and security-based lending products and services, including a proprietary technology platform which offers efficient connectivity to ensure a positive client experience through the clearing and settlement process. The company is one of the leading mid-market clearers in the securities industry, with approximately 100 correspondent clearing relationships. The company operates an asset management business in which the company earns fees, commissions and other revenues for management of third party assets and investment gains or losses on the company's investments in funds and proprietary accounts managed either by the company's investment managers or by independent investment managers. Listed Derivatives The company provides competitive and efficient clearing and execution in all major futures exchanges globally. Through the company's platforms, client orders are accepted and directed to the appropriate exchange for execution. The company then facilitates the clearing of clients' transactions. Clearing involves the matching of clients' trades with the exchange, the collection and management of client margin deposits to support the transactions, and the accounting and reporting of the transactions to clients. The company seeks to leverage its capabilities and capacity in clearing to financial institutions, institutional trading firms, professional traders and introducing brokers, as well as offering facilities management or outsourcing solutions to other FCMs. Foreign Exchange The company provides prime brokerage foreign exchange ('FX') services to financial institutions and professional traders. The company provides its clients with the full range of OTC products, including 24-hour a day execution of spot, forwards and options, as well as non-deliverable forwards in both liquid and exotic currencies. Retail The company provides its retail clients around the world access to over 18,000 global financial markets, including spot foreign exchange and CFDs, which are investment products with returns linked to the performance of underlying assets, and both financial trading and physical investment in precious metals. In addition, the company's independent wealth management business offers a comprehensive product suite to retail investors in the United States. Retail Forex and CFDs The company is a provider of trading services and solutions in the global financial markets, including spot foreign exchange ('forex') and CFDs. The company offers CFDs on currencies, commodities, indices, individual equities, cryptocurrencies, bonds, options and interest rate products. The company seeks to attract and support its clients through direct and indirect channels. The company's primary direct channels for its retail forex and CFD business are the company's mobile platforms and internet websites, FOREX.com and Cityindex.com, which are available in multiple languages, including English, Chinese, Japanese, Spanish and Arabic. The company's indirect channels include its relationships with introducing brokers, who solicit clients on the company's behalf, and white label partners, who offer the company's trading services to their clients under their own brand. The company's proprietary trading technology provides the company's clients with an enhanced client experience and multiple ways to trade and manage their accounts, tailored to their level of experience and preferred mode of access. In addition, the company selectively offers third party trading tools that complement the company's proprietary offerings. The company has longstanding relationships with a large number of institutional liquidity providers, as well as access to multiple liquidity venues. The company has proprietary technology to handle numerous aspects of account onboarding and client service, including the account opening and client verification process, fast online account funding and withdrawals with a wide variety of automated payment methods, and on-demand delivery of client information, such as account statements and other account-related reporting. The company also offers account opening and funding functions on the company's mobile trading applications in order to provide a superior experience to the large number of clients who trade primarily through their mobile devices. Given the highly regulated and global nature of the company's business, these processes are customized to each regulatory jurisdiction in which the company operates, and are further tailored to client needs and preferences in specific countries in order to make it easier for clients in these countries to open accounts with the company and then to fund and trade in those accounts. The company also works with introducing brokers in order to expand the company's client base. The company works with a variety of different types of introducing brokers, ranging from small, specialized firms that specifically identify and solicit clients interested in forex and CFD trading, to larger, more established financial services firms. Independent Wealth Management The company's independent broker/dealer, SA Stone Wealth Management Inc. ('SA Stone'), member FINRA/SIPC, together with its affiliated SEC-registered investment advisor, SA Stone Investment Advisors Inc., provides an integrated platform of technology, comprehensive wealth management and investment services to registered representatives, investment advisor representatives and registered investment advisors nationwide. The firm supports more than 400 independent professionals with best-in-class service and products. Retail Precious Metals The company's physical retail precious metals business is principally conducted within Coininvest GmbH. Through the company's website Stonexbullion.com, the company offers clients the ability to purchase physical gold and other precious metals, in multiple forms, including coins and bars, in denominations of their choice, to add to their investment portfolios. Global Payments The company provides customized payment, technology and treasury services to banks and commercial businesses as well as charities, NGOs and government organizations. The company provides transparent pricing and offer local currency payments services in more than 180 countries and 140 currencies, which is more than any other payments solutions provider. The company's proprietary platforms allow its clients to connect to the company digitally and seamlessly with customized solutions for each of the company's client groups that fit their specific needs. The company utilizes the Society for Worldwide Interbank Financial Telecommunication ('SWIFT') network, as well as direct application programming interfaces ('APIs') to service almost 100 financial institutions globally and connect them to the company's approximately 375 correspondent banks around the world enabling them to make local currency payments in a cost effective and secure manner. Through the company's platforms and the company's commitment to client service, the company is able to provide simple and fast execution, ensuring delivery of funds in local currency to any of the countries the company service quickly through the company's global network of correspondent banks. The company primarily acts as a principal in buying and selling foreign currencies on a spot basis and derive revenue from the difference between the purchase and sale prices. Acquisitions Incomm S.A.S. In February 2023, one of the company's subsidiaries, StoneX Commodity Solutions LLC acquired all of the outstanding shares of Incomm S.A.S. ('Incomm'), which is based in Colombia. Incomm specializes in supporting the import of grain and feed products for Colombian clients and is a proven resource in management of customs clearing, inventory management at destination ports and providing non-recourse trade finance for destination buyers via local Colombian banks. Cotton Distributors Inc. In October 2022, the company's wholly owned subsidiary, StoneX (Netherlands) B.V., acquired CDI-Societe Cotonniere De Distribution S.A ('CDI'), based in Switzerland. CDI operates a global cotton merchant business with a strong network of producers in Brazil and West Africa, as well as buyers throughout Asia. Regulation The company is required to comply with a wide range of requirements imposed by the Commodity Futures Trading Commission (the 'CFTC') and the National Futures Association (the 'NFA'). The company must comply with a wide range of requirements imposed by the SEC, state securities commissions, the Municipal Securities Rulemaking Board ('MSRB') and the Financial Industry Regulatory Authority ('FINRA'). These regulatory bodies safeguard the integrity of the financial markets and protect the interests of investors in these markets. In connection with the company's wealth management business, one of the company's subsidiaries, SA Stone Investment Advisors Inc., is registered with, and subject to oversight by, the SEC as an investment adviser. As such, in its relations with its advisory clients, SA Stone Investment Advisers Inc. is subject to the fiduciary and other obligations imposed on investment advisers under the Investment Advisers Act of 1940 and the rules and regulations promulgated thereunder, as well as various state securities laws. These laws and regulations include obligations relating to, among other things, custody and management of client assets, marketing activities, self-dealing and full disclosure of material conflicts of interest, and generally grant the SEC and other supervisory bodies administrative powers to address non-compliance. The CFTC and NFA also regulate the company's forex, futures and swaps trading activities. The company maintains client segregated deposits from the company's clients relating to their trading of futures and options on futures on the U.S. commodities exchanges, making the company subject to CFTC regulation 1.20, which specifies that such funds must be held in segregation and not commingled with the firm's own assets. In addition, the company is subject to CFTC regulation 1.25, which governs the acceptable investment of client segregated assets. This regulation allows for the investment of client segregated assets in readily marketable instruments, including the U.S. Treasury securities, municipal securities, government sponsored enterprise securities, certificates of deposit, commercial paper and corporate notes or bonds which are guaranteed by the U.S. under the Temporary Liquidity Guarantee Program, interest in money market mutual funds, and repurchase transactions with unaffiliated entities in otherwise allowable securities. The company predominately invests its client segregated assets in the U.S. Treasury securities and interest-bearing bank deposits. In addition, in the company's capacity as a securities clearing broker-dealer, the company clears transactions for clients and certain proprietary accounts of broker-dealers ('PABs'). In accordance with Rule 15c3-3 of the Securities Exchange Act of 1934 ('Rule 15c3-3'), the company maintains special reserve bank accounts ('SRBAs') for the exclusive benefit of securities clients and PABs. The company maintains client secured deposits from its clients relating to their trading of futures and options on futures traded on, or subject to the rules of, a foreign board of trade, making the company subject to CFTC Regulation 30.7, which requires that such funds must be carried in separate accounts in an amount sufficient to satisfy all of the company's obligations to clients trading foreign futures and foreign options on foreign commodity exchanges or boards of trade, which are designated as secured clients' accounts. As a Retail Foreign Exchange dealer ('RFED') registered with the CFTC and member of NFA, the company maintains deposits from clients relating to their trading of OTC foreign exchange contracts whereby the company acts as counterparty to client trading activity making the company subject to CFTC regulation 5.8, which specifies that such funds must be held in designated accounts at qualifying institutions in the United States or money center countries as defined by CFTC regulation 1.49. Like other companies in the financial services industry, the Dodd-Frank Act provides for a number of significant provisions affecting the company's business. The company is a CFTC registered swap dealer, whose business is overseen by the NFA. The company has implemented, and that the company maintain, appropriate internal practices, procedures and controls to enable the company to comply with applicable OFAC (the U.S. Treasury Department's Office of Foreign Assets Control) requirements. Specifically, the company is subject to the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the 'USA PATRIOT Act'), which requires that the company maintains a comprehensive anti-money laundering ('AML') program, a customer identification program ('CIP'), designate an AML compliance officer, provide specified employee training and conduct an annual independent audit of the company's AML program. Additionally, the company's U.S. legal entities qualifying as covered financial institutions are subject to the Customer Due Diligence Rule ('the CDD Rule'), which clarifies and strengthens customer due diligence requirements. The Financial Conduct Authority ('FCA'), the regulator of investment firms in the U.K., regulates the company's U.K. subsidiary as a Markets in Financial Instruments Directive ('MiFID') investment firm under U.K. law. In Europe, the company's regulated subsidiaries are subject to E.U. regulation. Across the U.K. and E.U., the respective transpositions of the Market Abuse Regulation, and the General Data Protection Regulation, also apply. The FCA and the financial supervisory authorities in the E.U. require the company's entities to have systems and controls in place to enable them to identify, assess, monitor and manage financial crime risk. The E.U. European Market Infrastructure Regulation (Regulation (EU) 648/2012) ('EMIR') imposes requirements on entities that enter into any form of derivative contract and applies directly to firms in the E.U. that trade derivatives and indirectly to non-E.U. firms that trade derivatives with E.U. firms. Accordingly, under these rules, the company is required to: report all derivative contracts and their lifecycle events (concluded, modified and terminated) to which the company is a party to a trade repository either by itself or through a third party; keep all records relating to concluding of derivative contracts and any subsequent modification for 5 years; comply with the risk management requirements for OTC bilateral derivatives, including portfolio reconciliation, portfolio compression, record keeping, dispute resolution and margining; and clear through central counterparties all OTC derivatives which will be subject to the mandatory clearing obligation. The company's U.K. entities are required to comply with the PRIIPs Regulation in relation to packaged retail and insurance-based investment products ('PRIIPs') that they manufacture, advise on or sell to retail clients. In Singapore, StoneX Financial Pte. Ltd. is regulated by the Monetary Authority of Singapore for dealing in capital market products and as a major payments institution. In addition, also in Singapore, StoneX APAC Pte. Ltd. is licensed as an Approved International Commodity Trading Company and is regulated as a Dealer under the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 for purposes of AML/CFT. In Hong Kong, StoneX Financial (HK) Limited is regulated by the Hong Kong Securities and Futures Commission for Dealing in Futures Contracts and Securities. In Australia, StoneX Financial Pty Ltd is regulated by the Australian Securities and Investments Commission for dealing in Derivatives, Leveraged FX and Securities. In Japan, StoneX Securities Co. Ltd. is regulated by the Financial Services Agency for dealing in FX. The company's business is subject to rules and regulations adopted by state, federal and foreign governments, and regulatory organizations governing data privacy, including for example the California Consumer Privacy Act ('CCPA') and the European General Data Protection Regulation ('GDPR'). Through the company's various operating subsidiaries, the company is member of a number of exchanges, including the Chicago Mercantile Exchange, the Chicago Board of Trade, the New York Mercantile Exchange, COMEX, InterContinental Exchange, Inc., the Minneapolis Grain Exchange, the London Metal Exchange, ICE Europe Ltd, Eurex Exchange, Dubai Mercantile Exchange, Euronext Amsterdam, Euronext Paris, European Energy Exchange, B3 S.A., Bitnomial Exchange LLC, Norexco ASA, the Rosario Futures Exchange, ICE Futures Abu Dhabi, Small Exchange, Inc., Nodal Exchange and the Singapore Exchange. These exchanges impose their own requirements on a variety of matters, in some cases addressing capital adequacy, protection of client assets, record-keeping and reporting. Foreign Operations The company operates in a number of foreign jurisdictions, including Canada, Ireland, the U.K., Cyprus, Luxembourg, Germany, Argentina, Brazil, Colombia, Uruguay, Paraguay, Mexico, Nigeria, Dubai, China, India, Hong Kong, Australia, Singapore, Japan, Cayman Islands, Bermuda and Poland. The company established wholly owned subsidiaries in the Netherlands, Cayman Islands and Bermuda but do not have offices or employees in those countries. Intellectual Property The company relies on a combination of trademark, copyright, trade secret and unfair competition laws in the United States and other jurisdictions to protect the company's proprietary technology, intellectual property rights and the company's brands (e.g., StoneX, IRMP, FOREX.com, GAIN Capital, and City Index). The company uses a variety of service marks that have been registered with the U.S. Patent and Trademark Office ('USPTO'), including: StoneX, IRMP, FCStone, FC Stone, CommodityNetwork, CoffeeNetwork, GAIN Capital, FOREX.com, It's Your World. Trade It., GAIN Capital Futures, and GAIN Futures. The company has applications pending with the USPTO for StoneX One, StoneHedge and Global Payments Connect. The company also has registered trademarks covering the company's City Index brand name and logo in a variety of jurisdictions, including Australia, the U.K., the E.U., Singapore and China. The company also has pursued trademark protection through the Madrid Protocol covering the company's StoneX brand name in a variety of jurisdictions. The company has received grants of registration in Australia, Brazil, Benelux, Columbia, the U.K., Japan, South Korea, Mexico, and Singapore; and is awaiting examination resolutions in other jurisdictions. History The company was founded as a Delaware corporation in 1924. It was incorporated in 1987. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in 2020.