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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."