This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

FCStone LLC Reaches Settlement With CFTC

NEW YORK, May 29, 2013 (GLOBE NEWSWIRE) -- INTL FCStone Inc. announced today that its wholly-owned subsidiary, FCStone LLC ("FCStone" or "the Company"), has reached a settlement with the Commodity Futures Trading Commission ("CFTC") in connection with transactions by former FCStone customers that took place between January 1, 2008 and March 1, 2009 and that resulted in the losses of approximately $127 million previously reported by FCStone in 2008 and 2009. The settlement follows an investigation begun by the CFTC in November 2011 and a September 2012 Wells notice, previously disclosed in the public filings of INTL FCStone Inc.

The CFTC's findings, neither admitted nor denied by FCStone, are that the Company violated Regulation 166.3, 17 C.F.R. §166.3 in that it failed to diligently supervise its officers' and employees' activities relating to risks associated with its customers' accounts, and in particular one account controlled by two of FCStone's customers who traded in natural gas futures, swaps and option contracts.

The settlement, with appropriate waivers and consents, requires FCStone to:
  • cease and desist from violating Regulation 166.3, 17 C.F.R. §166.3;
  • pay $1.5 million to the CFTC; and
  • appoint an independent third party reviewer to review and evaluate FCStone's existing policies and procedures relating to certain risks, to ensure that the Company has made sufficient modifications to its risk controls since 2008.

The Company and its parent, INTL FCStone Inc., provided for the possibility of a $1.5 million fine in their financial statements for the quarter ended December 31, 2012.

Sean O'Connor, INTL FCStone Inc.'s Chief Executive Officer, said "We are fully committed to working within a risk and compliance framework that protects our customers' and our firm's assets."

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs