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Delaware
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59-2921318
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Title of Each Class
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Trading Symbol
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Name of each exchange on which registered
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Common Stock, $0.01 par value
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INTL
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The Nasdaq Stock Market LLC
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Large accelerated filer
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o
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Accelerated filer
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x
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Non-accelerated filer
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o
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(Do not check if a smaller reporting company)
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Smaller reporting company
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o
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Emerging growth company
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o
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Page
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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•
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Financial Agricultural (“Ag”) & Energy
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◦
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Agricultural -
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▪
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Grain elevator operators, grain merchandisers, traders, processors, manufacturers and end-users.
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▪
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Livestock production, feeding and processing, dairy and users of agricultural commodities in the food industry.
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▪
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Coffee, sugar and cocoa producers, processors and end-users.
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▪
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Global fiber, textile and apparel industry.
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◦
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Energy and renewable fuels -
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▪
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Producers, refiners, wholesalers, transportation companies, convenience store chains, automobile and truck fleet operators, industrial companies, railroads, and municipalities.
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▪
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Consumers of natural gas including some of the largest natural gas consumers in North America, including municipalities and large manufacturing firms, as well as major utilities.
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▪
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Ethanol and biodiesel producers and end-users.
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◦
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Other -
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▪
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Lumber mills, wholesalers, distributors and end-users.
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▪
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Commercial entities seeking to hedge their interest rate and foreign exchange exposures.
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•
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LME Metals
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◦
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Commercial -
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▪
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Producers, consumers and merchants of copper, aluminum, zinc, lead, nickel, tin and other ferrous products.
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◦
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Institutional -
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▪
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Commodity trading advisors and hedge funds seeking clearing and execution of LME and NYMEX/COMEX base metal products.
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•
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market conditions, such as price levels and volatility in the commodities, securities and foreign exchange markets in which we operate;
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•
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changes in the volume of our market-making and trading activities;
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•
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changes in the value of our financial instruments, currency and commodities positions and our ability to manage related risks;
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•
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the level and volatility of interest rates;
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•
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the availability and cost of funding and capital;
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•
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our ability to manage personnel, overhead and other expenses;
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•
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changes in execution and clearing fees;
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•
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the addition or loss of sales or trading professionals;
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•
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reduction in fee revenues from client trading and wealth management services;
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•
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changes in legal and regulatory requirements; and
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•
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general economic and political conditions.
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•
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increasing our vulnerability to general adverse economic and industry conditions;
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•
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requiring that a portion of our cash flow from operations be used for the payment of interest on our indebtedness, thereby reducing our ability to use our cash flow to fund working capital, capital expenditures, acquisitions, investments and general corporate requirements;
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•
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making it difficult for us to optimally manage the cash flow for our businesses;
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•
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limiting our ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions, investments and general corporate requirements;
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•
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limiting our flexibility in planning for, or reacting to, changes in our business and the markets in which we operate; and
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•
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subjecting us to a number of restrictive covenants that, among other things, limit our ability to pay dividends and make distributions, make acquisitions and dispositions, borrow additional funds and make capital expenditures and other investments.
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•
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a $386.4 million facility available to the Company, for general working capital requirements, committed until February 22, 2022.
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•
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a $75.0 million facility available to INTL FCStone Financial, for short-term funding of margin to commodity exchanges, committed until April 3, 2020.
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•
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a $232.5 million committed facility available to our wholly owned subsidiary, FCStone Merchant Services, LLC, for financing traditional commodity financing arrangements and commodity repurchase agreements, committed until February 1, 2020.
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•
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a $50.0 million facility available to our wholly owned subsidiary, INTL FCStone Ltd, for short-term funding of margin to commodity exchanges, committed until January 31, 2020.
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•
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integrating the management teams, strategies, cultures, technologies and operations of the acquired companies;
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•
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retaining and assimilating the key personnel of acquired companies;
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•
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retaining existing clients of the acquired companies;
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•
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creating uniform standards, controls, procedures, policies and information systems; and
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•
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achieving revenue growth because of risks involving (1) the ability to retain clients, (2) the ability to sell the services and products of the acquired companies to the existing clients of our other business segments, and (3) the ability to sell the services and products of our other business segments to the existing clients of the acquired companies.
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•
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the potential disruption of each company’s ongoing business and distraction of their respective management teams;
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•
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unanticipated expenses related to technology integration; and
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•
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potential unknown liabilities associated with the acquisitions.
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•
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the price volatility of specific financial instruments, currencies and commodities,
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•
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our ability to attract order flow;
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•
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the skill of our personnel;
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•
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the availability of capital; and
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•
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general market conditions.
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•
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providing enhanced liquidity to our clients;
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•
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the efficiency of our order execution;
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•
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the sophistication of our trading technology; and
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•
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the quality of our client service.
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•
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match the quotes other market makers display; and
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•
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hold varying amounts of financial instruments, currencies and commodities in inventory.
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•
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illiquid markets;
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•
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fair value losses arising from positions held by us;
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•
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the failure of buyers and sellers of securities, commodities and other assets to fulfill their settlement obligations;
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•
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redemptions from funds managed in our asset management business segment and consequent reductions in management fees;
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•
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reductions in accrued performance fees in our asset management business segment; and
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•
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increases in claims and litigation.
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•
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supply and demand of commodities;
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•
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weather conditions affecting certain commodities;
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•
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national and international economic and political conditions;
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•
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perceived stability of commodities and financial markets;
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•
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the level and volatility of interest rates and inflation; and
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•
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financial strength of market participants.
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•
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economic, political and market conditions;
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•
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the availability of short-term and long-term funding and capital;
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•
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the level and volatility of interest rates;
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•
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legislative and regulatory changes; and
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•
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currency values and inflation.
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•
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unanticipated disruptions in service to our clients;
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•
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slower response times;
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•
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delays in our clients’ trade execution;
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•
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failed settlement of trades;
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•
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decreased client satisfaction with our services;
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•
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incomplete, untimely or inaccurate accounting, recording, reporting or processing of trades;
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•
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financial losses;
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•
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litigation or other client claims; and
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•
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regulatory sanctions.
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•
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risk management;
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•
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trade practices;
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•
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the way we communicate with, market our products and services to, and disclose risks to, clients;
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•
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financial, transaction and other reporting requirements and practices;
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•
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client identification and anti-money laundering requirements;
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•
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capital structure;
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•
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record creation and retention;
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•
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safeguarding and management of client assets and personal information;
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•
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conflicts of interest; and
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•
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the conduct of our directors, officers and employees.
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•
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offer alternative forms of financial intermediation as a result of superior technology and greater availability of information;
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•
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offer a wider range of services and products than we offer;
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•
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be larger and better capitalized;
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•
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have greater name recognition; and
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•
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have more extensive client bases.
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•
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actual or anticipated variations in our results of operations;
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•
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announcements of new products by us or our competitors;
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•
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technological innovations by us or our competitors;
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•
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changes in earnings estimates or buy/sell recommendations by financial analysts;
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•
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the operating and stock price performance of other companies;
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•
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general market conditions or conditions specific in specific markets;
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•
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conditions or trends affecting our industry or the economy generally;
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•
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announcements relating to strategic relationships or acquisitions; and
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•
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risk factors and uncertainties set forth elsewhere in this Form 10-K.
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•
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the inability to manage and coordinate the various regulatory requirements of multiple jurisdictions that are constantly evolving and subject to unexpected change;
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•
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tariffs and other trade barriers;
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•
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difficulties in recruiting and retaining personnel, and managing international operations;
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•
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difficulties of debt collection in foreign jurisdictions;
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•
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potentially adverse tax consequences; and
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•
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reduced protection for intellectual property rights.
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Price Range
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||||||
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High
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Low
|
||||
2019:
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||||
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Fourth Quarter
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$
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45.02
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$
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35.02
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Third Quarter
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$
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42.39
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$
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34.10
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Second Quarter
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$
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44.57
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$
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35.73
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First Quarter
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$
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49.74
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$
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35.07
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2018:
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||||
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Fourth Quarter
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$
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57.00
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$
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48.06
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Third Quarter
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$
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53.57
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$
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41.14
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Second Quarter
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$
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46.96
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$
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38.58
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First Quarter
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$
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44.91
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$
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38.14
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Period
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Total Number of Shares Purchased
|
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Average Price Paid per Share
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Total Number of Shares Purchased as Part of Publicly Announced Program
|
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Maximum Number of Shares Remaining to be Purchased Under the Program
|
|||||
July 1, 2019 to July 31, 2019
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—
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$
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—
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—
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1,500,000
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August 1, 2019 to August 31, 2019
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76,052
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37.55
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76,052
|
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1,423,948
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September 1, 2019 to September 30, 2019
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23,948
|
|
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38.68
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|
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23,948
|
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1,400,000
|
|
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Total
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100,000
|
|
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$
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37.82
|
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100,000
|
|
|
|
|
Year Ended September 30,
|
||||||||||||||||||
(in millions, except share and per share amounts)
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2019
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2018
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2017
|
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2016
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2015
|
||||||||||
Revenues:
|
|
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|
|
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||||||||||
Sales of physical commodities
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$
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31,830.3
|
|
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$
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26,682.4
|
|
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$
|
28,673.3
|
|
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$
|
14,112.0
|
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$
|
34,089.9
|
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Principal gains, net
|
415.8
|
|
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354.1
|
|
|
297.0
|
|
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312.2
|
|
|
317.7
|
|
|||||
Commissions and clearing fees
|
372.4
|
|
|
391.8
|
|
|
318.6
|
|
|
233.3
|
|
|
203.4
|
|
|||||
Consulting, management and account fees
|
79.6
|
|
|
71.1
|
|
|
65.0
|
|
|
42.2
|
|
|
42.8
|
|
|||||
Interest income
|
198.9
|
|
|
123.3
|
|
|
69.7
|
|
|
55.2
|
|
|
39.4
|
|
|||||
Total revenues
|
32,897.0
|
|
|
27,622.7
|
|
|
29,423.6
|
|
|
14,754.9
|
|
|
34,693.2
|
|
|||||
Cost of sales of physical commodities
|
31,790.9
|
|
|
26,646.9
|
|
|
28,639.6
|
|
|
14,083.9
|
|
|
34,068.9
|
|
|||||
Operating revenues
|
1,106.1
|
|
|
975.8
|
|
|
784.0
|
|
|
671.0
|
|
|
624.3
|
|
|||||
Transaction-based clearing expenses
|
183.5
|
|
|
179.7
|
|
|
136.3
|
|
|
129.9
|
|
|
122.7
|
|
|||||
Introducing broker commissions
|
114.7
|
|
|
133.8
|
|
|
113.0
|
|
|
68.9
|
|
|
52.7
|
|
|||||
Interest expense
|
154.7
|
|
|
80.7
|
|
|
42.1
|
|
|
28.3
|
|
|
17.1
|
|
|||||
Net operating revenues
|
653.2
|
|
|
581.6
|
|
|
492.6
|
|
|
443.9
|
|
|
431.8
|
|
|||||
Compensation and other expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits
|
393.1
|
|
|
337.7
|
|
|
295.7
|
|
|
263.9
|
|
|
251.1
|
|
|||||
Trading systems and market information
|
38.8
|
|
|
34.7
|
|
|
34.4
|
|
|
28.0
|
|
|
23.5
|
|
|||||
Occupancy and equipment rental
|
19.4
|
|
|
16.5
|
|
|
15.2
|
|
|
13.3
|
|
|
13.5
|
|
|||||
Professional fees
|
21.0
|
|
|
18.1
|
|
|
15.2
|
|
|
14.0
|
|
|
12.5
|
|
|||||
Travel and business development
|
16.2
|
|
|
13.8
|
|
|
13.3
|
|
|
11.5
|
|
|
10.5
|
|
|||||
Non-trading technology and support
|
20.1
|
|
|
13.9
|
|
|
11.6
|
|
|
7.1
|
|
|
4.7
|
|
|||||
Depreciation and amortization
|
14.0
|
|
|
11.6
|
|
|
9.8
|
|
|
8.2
|
|
|
7.2
|
|
|||||
Communications
|
6.6
|
|
|
5.4
|
|
|
5.0
|
|
|
4.7
|
|
|
4.6
|
|
|||||
Bad debts
|
2.5
|
|
|
3.1
|
|
|
4.3
|
|
|
4.4
|
|
|
7.3
|
|
|||||
(Recovery) bad debt on physical coal
|
(12.4
|
)
|
|
1.0
|
|
|
47.0
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
28.4
|
|
|
26.3
|
|
|
25.9
|
|
|
22.3
|
|
|
18.8
|
|
|||||
Total compensation and other expenses
|
547.7
|
|
|
482.1
|
|
|
477.4
|
|
|
377.4
|
|
|
353.7
|
|
|||||
Other gains
|
5.5
|
|
|
2.0
|
|
|
—
|
|
|
6.2
|
|
|
—
|
|
|||||
Income from continuing operations, before tax
|
111.0
|
|
|
101.5
|
|
|
15.2
|
|
|
72.7
|
|
|
78.1
|
|
|||||
Income tax expense
|
25.9
|
|
|
46.0
|
|
|
8.8
|
|
|
18.0
|
|
|
22.4
|
|
|||||
Net income
|
$
|
85.1
|
|
|
$
|
55.5
|
|
|
$
|
6.4
|
|
|
$
|
54.7
|
|
|
$
|
55.7
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
4.46
|
|
|
$
|
2.93
|
|
|
$
|
0.32
|
|
|
$
|
2.94
|
|
|
$
|
2.94
|
|
Diluted
|
$
|
4.39
|
|
|
$
|
2.87
|
|
|
$
|
0.31
|
|
|
$
|
2.90
|
|
|
$
|
2.87
|
|
Number of shares:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
18,738,905
|
|
|
18,549,011
|
|
|
18,395,987
|
|
|
18,410,561
|
|
|
18,525,374
|
|
|||||
Diluted
|
19,014,395
|
|
|
18,934,830
|
|
|
18,687,354
|
|
|
18,625,372
|
|
|
18,932,235
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average stockholders’ equity
|
15.5
|
%
|
|
11.6
|
%
|
|
1.5
|
%
|
|
13.2
|
%
|
|
15.0
|
%
|
|||||
Employees, end of period
|
2,012
|
|
|
1,701
|
|
|
1,607
|
|
|
1,464
|
|
|
1,231
|
|
|||||
Compensation and benefits as a percentage of operating revenues
|
35.5
|
%
|
|
34.6
|
%
|
|
37.7
|
%
|
|
39.3
|
%
|
|
40.2
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Balance Sheet Information:
|
September 30,
2019 |
|
September 30,
2018 |
|
September 30,
2017 |
|
September 30,
2016 |
|
September 30,
2015 |
||||||||||
Total assets
|
$
|
9,936.1
|
|
|
$
|
7,824.7
|
|
|
$
|
6,243.4
|
|
|
$
|
5,950.3
|
|
|
$
|
5,070.0
|
|
Lenders under loans
|
$
|
202.3
|
|
|
$
|
355.2
|
|
|
$
|
230.2
|
|
|
$
|
182.8
|
|
|
$
|
41.6
|
|
Senior secured term loan, net
|
$
|
167.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Senior unsecured notes, net
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44.5
|
|
|
$
|
45.5
|
|
Stockholders’ equity
|
$
|
594.2
|
|
|
$
|
505.3
|
|
|
$
|
449.9
|
|
|
$
|
433.8
|
|
|
$
|
397.1
|
|
•
|
Realized records in both operating revenues of $1,106.1 million and net income of $85.1 million.
|
•
|
Achieved a return on average stockholders’ equity of 15.5%, exceeding our internal target of 15%.
|
•
|
Executed an asset purchase agreement to acquire the futures and options brokerage and clearing business of UOB Bullion and Futures Limited.
|
•
|
Acquired GMP Securities, LLC, expanding our institutional fixed-income trading offerings into high yield, convertible and emerging market debt securities, as well as adding new institutional clients to benefit from our full suite of financial services.
|
•
|
Acquired Carl Kliem S.A., an independent inter-dealer broker based in Luxembourg, providing us with a strong European client base, and an E.U. based footprint for us, post Brexit.
|
•
|
Acquired CoinInvest GmbH and European Precious Metal Trading GmbH, expanding our precious metals offering.
|
•
|
Launched a securities prime brokerage division, offering multi-asset prime brokerage, execution, outsourced trading, custody, and self-clearing and introduced clearing services for hedge funds, mutual funds and family offices. Subsequently, expanding this initiative with the acquisition of Fillmore Advisors, LLC, a leading provider of outsourced trading solutions and operational consulting to institutional asset managers.
|
•
|
Our wholly-owned subsidiary, INTL FCStone Financial (Canada) Inc., became a member of the Investment Industry Regulatory Organization of Canada (“IIROC”), allowing us to offer exchange-traded financial products throughout Canada.
|
•
|
Amended our senior secured credit facility, extending the maturity through February 2022 and increasing the size of the facility to its current commitment of $393.0 million.
|
|
Year Ended September 30,
|
||||||||||||||||
(in millions)
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||
Sales of physical commodities
|
$
|
31,830.3
|
|
|
19
|
%
|
|
$
|
26,682.4
|
|
|
(7
|
)%
|
|
$
|
28,673.3
|
|
Principal gains, net
|
415.8
|
|
|
17
|
%
|
|
354.1
|
|
|
19
|
%
|
|
297.0
|
|
|||
Commission and clearing fees
|
372.4
|
|
|
(5
|
)%
|
|
391.8
|
|
|
23
|
%
|
|
318.6
|
|
|||
Consulting, management, and account fees
|
79.6
|
|
|
12
|
%
|
|
71.1
|
|
|
9
|
%
|
|
65.0
|
|
|||
Interest income
|
198.9
|
|
|
61
|
%
|
|
123.3
|
|
|
77
|
%
|
|
69.7
|
|
|||
Total revenues
|
32,897.0
|
|
|
19
|
%
|
|
27,622.7
|
|
|
(6
|
)%
|
|
29,423.6
|
|
|||
Cost of sales of physical commodities
|
31,790.9
|
|
|
19
|
%
|
|
26,646.9
|
|
|
(7
|
)%
|
|
28,639.6
|
|
|||
Operating revenues
|
1,106.1
|
|
|
13
|
%
|
|
975.8
|
|
|
24
|
%
|
|
784.0
|
|
|||
Transaction-based clearing expenses
|
183.5
|
|
|
2
|
%
|
|
179.7
|
|
|
32
|
%
|
|
136.3
|
|
|||
Introducing broker commissions
|
114.7
|
|
|
(14
|
)%
|
|
133.8
|
|
|
18
|
%
|
|
113.0
|
|
|||
Interest expense
|
154.7
|
|
|
92
|
%
|
|
80.7
|
|
|
92
|
%
|
|
42.1
|
|
|||
Net operating revenues
|
653.2
|
|
|
12
|
%
|
|
581.6
|
|
|
18
|
%
|
|
492.6
|
|
|||
Compensation and benefits
|
393.1
|
|
|
16
|
%
|
|
337.7
|
|
|
14
|
%
|
|
295.7
|
|
|||
Bad debts
|
2.5
|
|
|
(19
|
)%
|
|
3.1
|
|
|
(28
|
)%
|
|
4.3
|
|
|||
(Recovery) bad debt on physical coal
|
(12.4
|
)
|
|
n/m
|
|
|
1.0
|
|
|
(98
|
)%
|
|
47.0
|
|
|||
Other expenses
|
164.5
|
|
|
17
|
%
|
|
140.3
|
|
|
8
|
%
|
|
130.4
|
|
|||
Total compensation and other expenses
|
547.7
|
|
|
14
|
%
|
|
482.1
|
|
|
1
|
%
|
|
477.4
|
|
|||
Other gains
|
5.5
|
|
|
175
|
%
|
|
2.0
|
|
|
n/m
|
|
|
—
|
|
|||
Income before tax
|
111.0
|
|
|
9
|
%
|
|
101.5
|
|
|
568
|
%
|
|
15.2
|
|
|||
Income tax expense
|
25.9
|
|
|
(44
|
)%
|
|
46.0
|
|
|
423
|
%
|
|
8.8
|
|
|||
Net income
|
$
|
85.1
|
|
|
53
|
%
|
|
$
|
55.5
|
|
|
767
|
%
|
|
$
|
6.4
|
|
|
Year Ended September 30,
|
||||||||||||||||
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||||
Volumes and Other Data:
|
|
|
|
|
|
|
|
|
|
||||||||
Exchange-traded - futures and options (contracts, 000’s)
|
128,897.5
|
|
|
—
|
%
|
|
129,486.5
|
|
|
31
|
%
|
|
99,148.4
|
|
|||
OTC (contracts, 000’s)
|
1,772.0
|
|
|
12
|
%
|
|
1,582.9
|
|
|
12
|
%
|
|
1,410.0
|
|
|||
Global Payments (# of payments, 000’s)
|
690.4
|
|
|
8
|
%
|
|
639.5
|
|
|
(1
|
)%
|
|
648.9
|
|
|||
Gold equivalent ounces traded (000’s)
|
370,400.3
|
|
|
47
|
%
|
|
251,530.2
|
|
|
83
|
%
|
|
137,235.3
|
|
|||
Equity Capital Markets (gross dollar volume, millions)
|
$
|
150,454.1
|
|
|
28
|
%
|
|
$
|
117,771.7
|
|
|
34
|
%
|
|
$
|
87,789.8
|
|
Debt Capital Markets (gross dollar volume, millions)
|
$
|
212,537.3
|
|
|
59
|
%
|
|
$
|
134,032.0
|
|
|
1
|
%
|
|
$
|
133,352.3
|
|
FX Prime Brokerage volume (U.S. notional, millions)
|
$
|
352,624.7
|
|
|
(12
|
)%
|
|
$
|
401,116.9
|
|
|
(35
|
)%
|
|
$
|
620,917.8
|
|
Average assets under management in Argentina (U.S. dollar, millions)
|
$
|
326.6
|
|
|
(23
|
)%
|
|
$
|
424.9
|
|
|
(25
|
)%
|
|
$
|
564.9
|
|
Average client equity - futures and options (millions)
|
$
|
2,072.5
|
|
|
(5
|
)%
|
|
$
|
2,180.4
|
|
|
8
|
%
|
|
$
|
2,015.9
|
|
Average money market / FDIC sweep client balances (millions)
|
$
|
790.9
|
|
|
(1
|
)%
|
|
$
|
802.3
|
|
|
(18
|
)%
|
|
$
|
974.1
|
|
|
Year Ended September 30,
|
||||||||||||||||
(in millions)
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||||
Compensation and benefits:
|
|
|
|
|
|
|
|
|
|
||||||||
Variable compensation and benefits
|
$
|
211.6
|
|
|
22
|
%
|
|
$
|
174.1
|
|
|
26
|
%
|
|
$
|
138.7
|
|
Fixed compensation and benefits
|
181.5
|
|
|
11
|
%
|
|
163.6
|
|
|
4
|
%
|
|
157.0
|
|
|||
|
393.1
|
|
|
16
|
%
|
|
337.7
|
|
|
14
|
%
|
|
295.7
|
|
|||
Other expenses:
|
|
|
|
|
|
|
|
|
|
||||||||
Trading systems and market information
|
38.8
|
|
|
12
|
%
|
|
34.7
|
|
|
1
|
%
|
|
34.4
|
|
|||
Occupancy and equipment rental
|
19.4
|
|
|
18
|
%
|
|
16.5
|
|
|
9
|
%
|
|
15.2
|
|
|||
Professional fees
|
21.0
|
|
|
16
|
%
|
|
18.1
|
|
|
19
|
%
|
|
15.2
|
|
|||
Travel and business development
|
16.2
|
|
|
17
|
%
|
|
13.8
|
|
|
4
|
%
|
|
13.3
|
|
|||
Non-trading technology and support
|
20.1
|
|
|
45
|
%
|
|
13.9
|
|
|
20
|
%
|
|
11.6
|
|
|||
Depreciation and amortization
|
14.0
|
|
|
21
|
%
|
|
11.6
|
|
|
18
|
%
|
|
9.8
|
|
|||
Communications
|
6.6
|
|
|
22
|
%
|
|
5.4
|
|
|
8
|
%
|
|
5.0
|
|
|||
Bad debts
|
2.5
|
|
|
(19
|
)%
|
|
3.1
|
|
|
(28
|
)%
|
|
4.3
|
|
|||
(Recovery) bad debt on physical coal
|
(12.4
|
)
|
|
n/m
|
|
|
1.0
|
|
|
(98
|
)%
|
|
47.0
|
|
|||
Other
|
28.4
|
|
|
8
|
%
|
|
26.3
|
|
|
2
|
%
|
|
25.9
|
|
|||
|
154.6
|
|
|
7
|
%
|
|
144.4
|
|
|
(21
|
)%
|
|
181.7
|
|
|||
Total compensation and other expenses
|
$
|
547.7
|
|
|
14
|
%
|
|
$
|
482.1
|
|
|
1
|
%
|
|
$
|
477.4
|
|
|
Year Ended September 30,
|
||||||||||||||||
(in millions)
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||||
Compensation and benefits:
|
|
|
|
|
|
|
|
|
|
||||||||
Variable compensation and benefits
|
$
|
27.7
|
|
|
24
|
%
|
|
$
|
22.4
|
|
|
51
|
%
|
|
$
|
14.8
|
|
Fixed compensation and benefits
|
72.8
|
|
|
14
|
%
|
|
63.9
|
|
|
7
|
%
|
|
59.7
|
|
|||
|
100.5
|
|
|
16
|
%
|
|
86.3
|
|
|
16
|
%
|
|
74.5
|
|
|||
Other expenses:
|
|
|
|
|
|
|
|
|
|
||||||||
Trading systems and market information
|
2.7
|
|
|
(10
|
)%
|
|
3.0
|
|
|
15
|
%
|
|
2.6
|
|
|||
Occupancy and equipment rental
|
19.3
|
|
|
17
|
%
|
|
16.5
|
|
|
9
|
%
|
|
15.1
|
|
|||
Professional fees
|
13.3
|
|
|
27
|
%
|
|
10.5
|
|
|
25
|
%
|
|
8.4
|
|
|||
Travel and business development
|
3.8
|
|
|
15
|
%
|
|
3.3
|
|
|
3
|
%
|
|
3.2
|
|
|||
Non-trading technology and support
|
15.1
|
|
|
39
|
%
|
|
10.9
|
|
|
27
|
%
|
|
8.6
|
|
|||
Depreciation and amortization
|
10.8
|
|
|
16
|
%
|
|
9.3
|
|
|
13
|
%
|
|
8.2
|
|
|||
Communications
|
6.2
|
|
|
24
|
%
|
|
5.0
|
|
|
11
|
%
|
|
4.5
|
|
|||
Other
|
17.7
|
|
|
2
|
%
|
|
17.4
|
|
|
43
|
%
|
|
12.2
|
|
|||
|
88.9
|
|
|
17
|
%
|
|
75.9
|
|
|
21
|
%
|
|
62.8
|
|
|||
Total compensation and other expenses
|
$
|
189.4
|
|
|
17
|
%
|
|
$
|
162.2
|
|
|
18
|
%
|
|
$
|
137.3
|
|
|
Year Ended September 30,
|
|||||||||||||||||||
(in millions)
|
2019
|
|
% of
Total
|
|
2018
|
|
% of
Total
|
|
2017
|
|
% of
Total
|
|||||||||
Variable compensation and benefits
|
$
|
211.6
|
|
|
25
|
%
|
|
$
|
174.1
|
|
|
22
|
%
|
|
$
|
138.7
|
|
|
19
|
%
|
Transaction-based clearing expenses
|
183.5
|
|
|
22
|
%
|
|
179.7
|
|
|
23
|
%
|
|
136.3
|
|
|
19
|
%
|
|||
Introducing broker commissions
|
114.7
|
|
|
14
|
%
|
|
133.8
|
|
|
16
|
%
|
|
113.0
|
|
|
15
|
%
|
|||
Total variable expenses
|
509.8
|
|
|
61
|
%
|
|
487.6
|
|
|
61
|
%
|
|
388.0
|
|
|
53
|
%
|
|||
Fixed compensation and benefits
|
181.5
|
|
|
21
|
%
|
|
163.6
|
|
|
21
|
%
|
|
157.0
|
|
|
22
|
%
|
|||
Other fixed expenses
|
164.5
|
|
|
19
|
%
|
|
140.3
|
|
|
18
|
%
|
|
130.4
|
|
|
18
|
%
|
|||
Bad debts
|
2.5
|
|
|
—
|
%
|
|
3.1
|
|
|
—
|
%
|
|
4.3
|
|
|
1
|
%
|
|||
(Recovery) bad debt on physical coal
|
(12.4
|
)
|
|
(1
|
)%
|
|
1.0
|
|
|
—
|
%
|
|
47.0
|
|
|
6
|
%
|
|||
Total non-variable expenses
|
336.1
|
|
|
39
|
%
|
|
308.0
|
|
|
39
|
%
|
|
338.7
|
|
|
47
|
%
|
|||
Total non-interest expenses
|
$
|
845.9
|
|
|
100
|
%
|
|
$
|
795.6
|
|
|
100
|
%
|
|
$
|
726.7
|
|
|
100
|
%
|
INTL FCStone Inc.
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Hedging
|
|
Global Payments
|
|
Securities
|
|
Physical Commodities
|
|
Clearing and Execution Services (“CES”)
|
|||||
Components:
|
|
Component:
|
|
Components:
|
|
Components:
|
|
Components:
|
|||||
- Financial Ag
& Energy
|
|
- Global Payments
|
|
- Equity Capital
Markets
|
|
- Precious Metals
|
|
- Exchange-Traded
Futures & Options |
|||||
- LME Metals
|
|
|
|
- Debt Capital
Markets |
|
- Physical Ag
& Energy
|
|
- FX Prime Brokerage
|
|||||
|
|
|
|
- Asset Management
|
|
|
|
- Correspondent
Clearing |
|||||
|
|
|
|
|
|
|
|
- Independent
Wealth Management |
|||||
|
|
|
|
|
|
|
|
- Derivative
Voice Brokerage |
|
Year Ended September 30,
|
||||||||||||||||
(in millions)
|
2019
|
|
% of Operating Revenues
|
|
2018
|
|
% of Operating Revenues
|
|
2017
|
|
% of Operating Revenues
|
||||||
Sales of physical commodities
|
$
|
31,830.3
|
|
|
|
|
$
|
26,682.4
|
|
|
|
|
$
|
28,673.3
|
|
|
|
Principal gains, net
|
412.8
|
|
|
|
|
342.8
|
|
|
|
|
300.2
|
|
|
|
|||
Commission and clearing fees
|
373.0
|
|
|
|
|
392.5
|
|
|
|
|
312.1
|
|
|
|
|||
Consulting, management, and account fees
|
77.2
|
|
|
|
|
69.1
|
|
|
|
|
63.8
|
|
|
|
|||
Interest income
|
208.0
|
|
|
|
|
131.5
|
|
|
|
|
80.3
|
|
|
|
|||
Total revenues
|
32,901.3
|
|
|
|
|
27,618.3
|
|
|
|
|
29,429.7
|
|
|
|
|||
Cost of sales of physical commodities
|
31,790.9
|
|
|
|
|
26,646.9
|
|
|
|
|
28,639.6
|
|
|
|
|||
Operating revenues
|
1,110.4
|
|
|
100%
|
|
971.4
|
|
|
100%
|
|
790.1
|
|
|
100%
|
|||
Transaction-based clearing expenses
|
182.6
|
|
|
16%
|
|
178.7
|
|
|
18%
|
|
133.9
|
|
|
17%
|
|||
Introducing broker commissions
|
114.6
|
|
|
10%
|
|
133.7
|
|
|
14%
|
|
112.9
|
|
|
14%
|
|||
Interest expense
|
149.2
|
|
|
13%
|
|
77.1
|
|
|
8%
|
|
34.3
|
|
|
4%
|
|||
Net operating revenues
|
664.0
|
|
|
|
|
581.9
|
|
|
|
|
509.0
|
|
|
|
|||
Variable direct compensation and benefits
|
181.2
|
|
|
16%
|
|
149.5
|
|
|
15%
|
|
122.0
|
|
|
15%
|
|||
Net contribution
|
482.8
|
|
|
|
|
432.4
|
|
|
|
|
387.0
|
|
|
|
|||
Fixed compensation and benefits
|
93.5
|
|
|
|
|
84.2
|
|
|
|
|
83.5
|
|
|
|
|||
Other fixed expenses
|
93.5
|
|
|
|
|
82.2
|
|
|
|
|
83.2
|
|
|
|
|||
Bad debts
|
2.5
|
|
|
|
|
3.1
|
|
|
|
|
4.3
|
|
|
|
|||
(Recovery) bad debt on physical coal
|
(12.4
|
)
|
|
|
|
1.0
|
|
|
|
|
47.0
|
|
|
|
|||
Total non-variable direct expenses
|
177.1
|
|
|
16%
|
|
170.5
|
|
|
18%
|
|
218.0
|
|
|
28%
|
|||
Segment income
|
$
|
305.7
|
|
|
|
|
$
|
261.9
|
|
|
|
|
$
|
169.0
|
|
|
|
|
Year Ended September 30,
|
||||||||||||||||
(in millions)
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||||
Sales of physical commodities
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Principal gains, net
|
135.5
|
|
|
5
|
%
|
|
129.0
|
|
|
16
|
%
|
|
111.1
|
|
|||
Commission and clearing fees
|
121.9
|
|
|
2
|
%
|
|
119.5
|
|
|
13
|
%
|
|
105.5
|
|
|||
Consulting, management and account fees
|
15.9
|
|
|
3
|
%
|
|
15.4
|
|
|
5
|
%
|
|
14.7
|
|
|||
Interest income
|
29.1
|
|
|
28
|
%
|
|
22.8
|
|
|
71
|
%
|
|
13.3
|
|
|||
Total revenues
|
302.4
|
|
|
5
|
%
|
|
286.7
|
|
|
17
|
%
|
|
244.6
|
|
|||
Cost of sales of physical commodities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Operating revenues
|
302.4
|
|
|
5
|
%
|
|
286.7
|
|
|
17
|
%
|
|
244.6
|
|
|||
Transaction-based clearing expenses
|
37.9
|
|
|
3
|
%
|
|
36.9
|
|
|
24
|
%
|
|
29.8
|
|
|||
Introducing broker commissions
|
26.1
|
|
|
21
|
%
|
|
21.5
|
|
|
8
|
%
|
|
19.9
|
|
|||
Interest expense
|
1.9
|
|
|
—
|
%
|
|
1.9
|
|
|
217
|
%
|
|
0.6
|
|
|||
Net operating revenues
|
236.5
|
|
|
4
|
%
|
|
226.4
|
|
|
17
|
%
|
|
194.3
|
|
|||
Variable direct compensation and benefits
|
66.1
|
|
|
7
|
%
|
|
61.7
|
|
|
18
|
%
|
|
52.5
|
|
|||
Net contribution
|
170.4
|
|
|
3
|
%
|
|
164.7
|
|
|
16
|
%
|
|
141.8
|
|
|||
Fixed compensation and benefits
|
33.1
|
|
|
6
|
%
|
|
31.1
|
|
|
4
|
%
|
|
29.8
|
|
|||
Other fixed expenses
|
35.9
|
|
|
4
|
%
|
|
34.4
|
|
|
(3
|
)%
|
|
35.4
|
|
|||
Bad debts
|
1.3
|
|
|
(54
|
)%
|
|
2.8
|
|
|
(26
|
)%
|
|
3.8
|
|
|||
Non-variable direct expenses
|
70.3
|
|
|
3
|
%
|
|
68.3
|
|
|
(1
|
)%
|
|
69.0
|
|
|||
Segment income
|
$
|
100.1
|
|
|
4
|
%
|
|
$
|
96.4
|
|
|
32
|
%
|
|
$
|
72.8
|
|
|
Exchange-traded
|
||||||||||||||
|
Year Ended September 30,
|
||||||||||||||
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||
Transactional revenues (in millions):
|
|
|
|
|
|
|
|||||||||
Agricultural
|
$
|
84.2
|
|
|
8%
|
|
$
|
78.1
|
|
|
9%
|
|
$
|
71.8
|
|
Energy and renewable fuels
|
8.4
|
|
|
(2)%
|
|
8.6
|
|
|
28%
|
|
6.7
|
|
|||
LME metals
|
52.6
|
|
|
7%
|
|
49.0
|
|
|
(2)%
|
|
50.1
|
|
|||
Other
|
11.2
|
|
|
(23)%
|
|
14.6
|
|
|
100%
|
|
7.3
|
|
|||
|
$
|
156.4
|
|
|
4%
|
|
$
|
150.3
|
|
|
11%
|
|
$
|
135.9
|
|
Selected data:
|
|
|
|
|
|
|
|||||||||
Futures and options (contracts, 000’s)
|
27,985.0
|
|
|
1%
|
|
27,586.8
|
|
|
16%
|
|
23,785.7
|
|
|||
Average rate per contract
|
$
|
5.49
|
|
|
2%
|
|
$
|
5.36
|
|
|
(4)%
|
|
$
|
5.61
|
|
Average client equity - futures and options (millions)
|
$
|
947.7
|
|
|
1%
|
|
$
|
938.0
|
|
|
—%
|
|
$
|
938.1
|
|
|
OTC
|
||||||||||||||
|
Year Ended September 30,
|
||||||||||||||
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||
Transactional revenues (in millions):
|
|
|
|
|
|
|
|
|
|
||||||
Agricultural
|
$
|
76.7
|
|
|
1%
|
|
$
|
76.0
|
|
|
42%
|
|
$
|
53.4
|
|
Energy and renewable fuels
|
18.0
|
|
|
23%
|
|
14.6
|
|
|
(21)%
|
|
18.4
|
|
|||
Other
|
6.3
|
|
|
(18)%
|
|
7.7
|
|
|
(13)%
|
|
8.9
|
|
|||
|
$
|
101.0
|
|
|
3%
|
|
$
|
98.3
|
|
|
22%
|
|
$
|
80.7
|
|
Selected data:
|
|
|
|
|
|
|
|
|
|
||||||
Volume (contracts, 000’s)
|
1,772.0
|
|
|
12%
|
|
1,582.9
|
|
|
12%
|
|
1,410.0
|
|
|||
Average rate per contract
|
$
|
55.19
|
|
|
(8)%
|
|
$
|
60.08
|
|
|
10%
|
|
$
|
54.61
|
|
|
Year Ended September 30,
|
||||||||||||||
(in millions)
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||
Sales of physical commodities
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
Principal gains, net
|
107.1
|
|
|
13%
|
|
95.0
|
|
|
10%
|
|
86.7
|
|
|||
Commission and clearing fees
|
3.8
|
|
|
(3)%
|
|
3.9
|
|
|
56%
|
|
2.5
|
|
|||
Consulting, management, account fees
|
1.8
|
|
|
800%
|
|
0.2
|
|
|
n/m
|
|
—
|
|
|||
Interest income
|
0.1
|
|
|
—
|
|
0.1
|
|
|
n/m
|
|
—
|
|
|||
Total revenues
|
112.8
|
|
|
14%
|
|
99.2
|
|
|
11%
|
|
89.2
|
|
|||
Cost of sales of physical commodities
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||
Operating revenues
|
112.8
|
|
|
14%
|
|
99.2
|
|
|
11%
|
|
89.2
|
|
|||
Transaction-based clearing expenses
|
4.9
|
|
|
14%
|
|
4.3
|
|
|
(7)%
|
|
4.6
|
|
|||
Introducing broker commissions
|
0.8
|
|
|
(33)%
|
|
1.2
|
|
|
(68)%
|
|
3.8
|
|
|||
Interest expense
|
0.1
|
|
|
(50)%
|
|
0.2
|
|
|
—%
|
|
0.2
|
|
|||
Net operating revenues
|
107.0
|
|
|
14%
|
|
93.5
|
|
|
16%
|
|
80.6
|
|
|||
Variable compensation and benefits
|
20.4
|
|
|
10%
|
|
18.5
|
|
|
14%
|
|
16.2
|
|
|||
Net contribution
|
86.6
|
|
|
15%
|
|
75.0
|
|
|
16%
|
|
64.4
|
|
|||
Fixed compensation and benefits
|
9.8
|
|
|
46%
|
|
6.7
|
|
|
29%
|
|
5.2
|
|
|||
Other fixed expenses
|
10.7
|
|
|
26%
|
|
8.5
|
|
|
(1)%
|
|
8.6
|
|
|||
Bad debts
|
—
|
|
|
—%
|
|
—
|
|
|
—%
|
|
—
|
|
|||
Total non-variable direct expenses
|
20.5
|
|
|
35%
|
|
15.2
|
|
|
10%
|
|
13.8
|
|
|||
Segment income
|
$
|
66.1
|
|
|
11%
|
|
$
|
59.8
|
|
|
18%
|
|
$
|
50.6
|
|
Selected data:
|
|
|
|
|
|
|
|
|
|
||||||
Global Payments (# of payments, 000’s)
|
690.4
|
|
|
8%
|
|
639.5
|
|
|
(1)%
|
|
648.9
|
|
|||
Average revenue per payment
|
$
|
160.63
|
|
|
4%
|
|
$
|
155.12
|
|
|
13%
|
|
$
|
137.46
|
|
|
Year Ended September 30,
|
||||||||||||||
(in millions)
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||
Sales of physical commodities
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
Principal gains, net
|
128.7
|
|
|
45%
|
|
88.9
|
|
|
9%
|
|
81.7
|
|
|||
Commission and clearing fees
|
30.6
|
|
|
23%
|
|
24.9
|
|
|
139%
|
|
10.4
|
|
|||
Consulting, management, and account fees
|
7.2
|
|
|
(26)%
|
|
9.7
|
|
|
(29)%
|
|
13.6
|
|
|||
Interest income
|
128.8
|
|
|
77%
|
|
72.7
|
|
|
58%
|
|
46.0
|
|
|||
Total revenues
|
295.3
|
|
|
51%
|
|
196.2
|
|
|
29%
|
|
151.7
|
|
|||
Cost of sales of physical commodities
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||
Operating revenues
|
295.3
|
|
|
51%
|
|
196.2
|
|
|
29%
|
|
151.7
|
|
|||
Transaction-based clearing expenses
|
45.3
|
|
|
12%
|
|
40.6
|
|
|
66%
|
|
24.5
|
|
|||
Introducing broker commissions
|
2.3
|
|
|
(56)%
|
|
5.2
|
|
|
(35)%
|
|
8.0
|
|
|||
Interest expense
|
116.7
|
|
|
109%
|
|
55.8
|
|
|
127%
|
|
24.6
|
|
|||
Net operating revenues
|
131.0
|
|
|
38%
|
|
94.6
|
|
|
—%
|
|
94.6
|
|
|||
Variable compensation and benefits
|
49.1
|
|
|
93%
|
|
25.5
|
|
|
34%
|
|
19.0
|
|
|||
Net contribution
|
81.9
|
|
|
19%
|
|
69.1
|
|
|
(9)%
|
|
75.6
|
|
|||
Fixed compensation and benefits
|
20.0
|
|
|
11%
|
|
18.0
|
|
|
(4)%
|
|
18.7
|
|
|||
Other fixed expenses
|
14.5
|
|
|
41%
|
|
10.3
|
|
|
—%
|
|
10.3
|
|
|||
Bad debts
|
—
|
|
|
—%
|
|
—
|
|
|
—%
|
|
—
|
|
|||
Total non-variable direct expenses
|
34.5
|
|
|
22%
|
|
28.3
|
|
|
(2)%
|
|
29.0
|
|
|||
Segment income
|
$
|
47.4
|
|
|
16%
|
|
$
|
40.8
|
|
|
(12)%
|
|
$
|
46.6
|
|
|
Year Ended September 30,
|
||||||||||||||
(in millions)
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||||
Sales of physical commodities
|
$
|
31,830.3
|
|
|
19%
|
|
$
|
26,682.4
|
|
|
(7)%
|
|
$
|
28,673.3
|
|
Principal gains, net
|
20.6
|
|
|
84%
|
|
11.2
|
|
|
460%
|
|
2.0
|
|
|||
Commission and clearing fees
|
(0.1
|
)
|
|
(106)%
|
|
1.8
|
|
|
80%
|
|
1.0
|
|
|||
Consulting, management, and account fees
|
2.7
|
|
|
108%
|
|
1.3
|
|
|
8%
|
|
1.2
|
|
|||
Interest income
|
11.2
|
|
|
58%
|
|
7.1
|
|
|
3%
|
|
6.9
|
|
|||
Total revenues
|
31,864.7
|
|
|
19%
|
|
26,703.8
|
|
|
(7)%
|
|
28,684.4
|
|
|||
Cost of sales of physical commodities
|
31,790.9
|
|
|
19%
|
|
26,646.9
|
|
|
(7)%
|
|
28,639.6
|
|
|||
Operating revenues
|
73.8
|
|
|
30%
|
|
56.9
|
|
|
27%
|
|
44.8
|
|
|||
Transaction-based clearing expenses
|
1.0
|
|
|
—%
|
|
1.0
|
|
|
25%
|
|
0.8
|
|
|||
Introducing broker commissions
|
0.8
|
|
|
300%
|
|
0.2
|
|
|
(50)%
|
|
0.4
|
|
|||
Interest expense
|
15.7
|
|
|
44%
|
|
10.9
|
|
|
73%
|
|
6.3
|
|
|||
Net operating revenues
|
56.3
|
|
|
26%
|
|
44.8
|
|
|
20%
|
|
37.3
|
|
|||
Variable compensation and benefits
|
15.8
|
|
|
22%
|
|
13.0
|
|
|
29%
|
|
10.1
|
|
|||
Net contribution
|
40.5
|
|
|
27%
|
|
31.8
|
|
|
17%
|
|
27.2
|
|
|||
Fixed compensation and benefits
|
9.0
|
|
|
13%
|
|
8.0
|
|
|
16%
|
|
6.9
|
|
|||
Other fixed expenses
|
6.0
|
|
|
(5)%
|
|
6.3
|
|
|
58%
|
|
4.0
|
|
|||
Bad debts (recovery)
|
(0.1
|
)
|
|
—%
|
|
(0.1
|
)
|
|
(114)%
|
|
0.7
|
|
|||
(Recovery) bad debt on physical coal
|
(12.4
|
)
|
|
(1,340)%
|
|
1.0
|
|
|
(98)%
|
|
47.0
|
|
|||
Total non-variable direct expenses
|
2.5
|
|
|
(84)%
|
|
15.2
|
|
|
(74)%
|
|
58.6
|
|
|||
Segment income (loss)
|
$
|
38.0
|
|
|
129%
|
|
$
|
16.6
|
|
|
(153)%
|
|
$
|
(31.4
|
)
|
|
Precious Metals
|
||||||||||||||
|
Year Ended September 30,
|
||||||||||||||
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||
Total revenues
|
$
|
30,685.9
|
|
|
19%
|
|
$
|
25,779.2
|
|
|
(8)%
|
|
$
|
27,958.9
|
|
Cost of sales of physical commodities
|
30,642.2
|
|
|
19%
|
|
25,749.4
|
|
|
(8)%
|
|
27,932.8
|
|
|||
Operating revenues
|
$
|
43.7
|
|
|
47%
|
|
$
|
29.8
|
|
|
14%
|
|
$
|
26.1
|
|
Selected data:
|
|
|
|
|
|
|
|
|
|
||||||
Gold equivalent ounces traded (000’s)
|
370,400.3
|
|
|
47%
|
|
251,530.2
|
|
|
83%
|
|
137,235.3
|
|
|||
Average revenue per ounce traded
|
$
|
0.12
|
|
|
—%
|
|
$
|
0.12
|
|
|
(37)%
|
|
$
|
0.19
|
|
|
Physical Ag & Energy
|
||||||||||||||
|
Year Ended September 30,
|
||||||||||||||
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||
Total revenues
|
$
|
1,178.8
|
|
|
27%
|
|
$
|
924.6
|
|
|
27%
|
|
$
|
725.6
|
|
Cost of sales of physical commodities
|
1,148.7
|
|
|
28%
|
|
897.5
|
|
|
27%
|
|
706.9
|
|
|||
Operating revenues
|
$
|
30.1
|
|
|
11%
|
|
$
|
27.1
|
|
|
45%
|
|
$
|
18.7
|
|
|
Year Ended September 30,
|
||||||||||||||
(in millions)
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||
Sales of physical commodities
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
Principal gains, net
|
20.9
|
|
|
12%
|
|
18.7
|
|
|
—%
|
|
18.7
|
|
|||
Commission and clearing fees
|
216.8
|
|
|
(11)%
|
|
242.4
|
|
|
26%
|
|
192.7
|
|
|||
Consulting, management, and account fees
|
49.6
|
|
|
17%
|
|
42.5
|
|
|
24%
|
|
34.3
|
|
|||
Interest income
|
38.8
|
|
|
35%
|
|
28.8
|
|
|
104%
|
|
14.1
|
|
|||
Total revenues
|
326.1
|
|
|
(2)%
|
|
332.4
|
|
|
28%
|
|
259.8
|
|
|||
Cost of physical commodities sold
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||
Operating revenues
|
326.1
|
|
|
(2)%
|
|
332.4
|
|
|
28%
|
|
259.8
|
|
|||
Transaction-based clearing expenses
|
93.5
|
|
|
(3)%
|
|
95.9
|
|
|
29%
|
|
74.2
|
|
|||
Introducing broker commissions
|
84.6
|
|
|
(20)%
|
|
105.6
|
|
|
31%
|
|
80.8
|
|
|||
Interest expense
|
14.8
|
|
|
78%
|
|
8.3
|
|
|
219%
|
|
2.6
|
|
|||
Net operating revenues
|
133.2
|
|
|
9%
|
|
122.6
|
|
|
20%
|
|
102.2
|
|
|||
Variable compensation and benefits
|
29.8
|
|
|
(3)%
|
|
30.8
|
|
|
27%
|
|
24.2
|
|
|||
Net contribution
|
103.4
|
|
|
13%
|
|
91.8
|
|
|
18%
|
|
78.0
|
|
|||
Fixed compensation and benefits
|
21.6
|
|
|
6%
|
|
20.4
|
|
|
(11)%
|
|
22.9
|
|
|||
Other fixed expenses
|
26.4
|
|
|
16%
|
|
22.7
|
|
|
(7)%
|
|
24.4
|
|
|||
Bad debts
|
1.3
|
|
|
225%
|
|
0.4
|
|
|
33%
|
|
0.3
|
|
|||
Total non-variable direct expenses
|
49.3
|
|
|
13%
|
|
43.5
|
|
|
(9)%
|
|
47.6
|
|
|||
Segment income
|
$
|
54.1
|
|
|
12%
|
|
$
|
48.3
|
|
|
59%
|
|
$
|
30.4
|
|
|
Year Ended September 30,
|
||||||||||||||
(in millions)
|
2019
|
|
% Change
|
|
2018
|
|
% Change
|
|
2017
|
||||||
Operating revenues by product line (in millions):
|
|
|
|
|
|
|
|
|
|
||||||
Exchange-Traded Futures & Options
|
$
|
162.4
|
|
|
(11)%
|
|
$
|
183.4
|
|
|
60%
|
|
$
|
114.9
|
|
FX Prime Brokerage
|
22.9
|
|
|
26%
|
|
18.2
|
|
|
(3)%
|
|
18.7
|
|
|||
Correspondent Clearing
|
34.4
|
|
|
17%
|
|
29.3
|
|
|
8%
|
|
27.2
|
|
|||
Independent Wealth Management
|
77.7
|
|
|
6%
|
|
73.3
|
|
|
1%
|
|
72.3
|
|
|||
Derivative Voice Brokerage
|
28.7
|
|
|
2%
|
|
28.2
|
|
|
6%
|
|
26.7
|
|
|||
Operating revenues
|
$
|
326.1
|
|
|
(2)%
|
|
$
|
332.4
|
|
|
28%
|
|
$
|
259.8
|
|
Selected data:
|
|
|
|
|
|
|
|
|
|
||||||
Exchange-traded - futures and options (contracts, 000’s)
|
100,912.5
|
|
|
(1)%
|
|
101,899.7
|
|
|
35%
|
|
75,362.7
|
|
|||
Exchange-traded - futures and options average rate per contract
|
$
|
1.25
|
|
|
(18)%
|
|
$
|
1.52
|
|
|
16%
|
|
$
|
1.31
|
|
Average client equity - futures and options (millions)
|
$
|
1,124.8
|
|
|
(9)%
|
|
$
|
1,242.4
|
|
|
15%
|
|
$
|
1,077.8
|
|
FX Prime Brokerage volume (U.S. notional, millions)
|
$
|
352,624.7
|
|
|
(12)%
|
|
$
|
401,116.9
|
|
|
(35)%
|
|
$
|
620,917.8
|
|
Average money market / FDIC sweep client balances (millions)
|
$
|
790.9
|
|
|
(1)%
|
|
$
|
802.3
|
|
|
(18)%
|
|
$
|
974.1
|
|
•
|
A three-year syndicated loan facility, which includes a $196.5 million revolving credit facility and a $196.5 million Term Loan, committed until February 22, 2022, under which we are entitled to borrow up to $386.4 million, subject to certain terms and conditions of the credit agreement. This credit facility will continue to be used to finance the Company’s working capital requirements and capital expenditures. The credit facility is secured by a first priority lien on substantially all of the assets of the Company and those of our subsidiaries that guarantee the credit facility. The Company is required to make quarterly principal payments against the Term Loan equal to 1.25% of the original balance with the remaining balance due on the maturity date. Amounts repaid on the Term Loan may not be reborrowed.
|
•
|
An unsecured syndicated loan facility, committed until April 3, 2020, under which our subsidiary, INTL FCStone Financial is entitled to borrow up to $75.0 million, subject to certain terms and conditions of the credit agreement. This facility is intended to provide short-term funding of margin to commodity exchanges as necessary.
|
•
|
A syndicated loan facility, committed until February 1, 2020, under which our subsidiary, FCStone Merchant Services, LLC is entitled to borrow up to $232.5 million, subject to certain terms and conditions of the credit agreement. The loan proceeds are used to finance commodity financing arrangements and commodity repurchase agreements.
|
•
|
An unsecured syndicated loan facility, committed until January 31, 2020, under which our subsidiary, INTL FCStone Ltd is entitled to borrow up to $50.0 million, subject to certain terms and conditions of the credit agreement. This facility is intended to provide short-term funding of margin to commodity exchanges as necessary.
|
•
|
A secured uncommitted loan facility under which INTL FCStone Financial may borrow up to $75.0 million, collateralized by commodity warehouse receipts, to facilitate U.S. commodity exchange deliveries of its clients, subject to certain terms and conditions of the credit agreement.
|
•
|
A secured uncommitted loan facility under which INTL FCStone Financial may borrow up to $100.0 million for short term funding of firm and client margin requirements, subject to certain terms and conditions of the agreement. The borrowings are secured by first liens on firm owned marketable securities or client owned securities which have been pledged to us under a clearing arrangement.
|
•
|
A secured uncommitted loan facility under which INTL FCStone Financial may borrow requested amounts for short term funding of firm and client margin requirements. The uncommitted maximum amount available to be borrowed is not specified, and all requests for borrowing are subject to the sole discretion of the lender. The borrowings are secured by first liens on firm owned marketable securities or client owned securities which have been pledged to us under a clearing arrangement.
|
•
|
A secured uncommitted loan facility under which FCStone Merchant Services, LLC may borrow up to $20.0 million, collateralized by a first priority security interest in the goods and inventory of FCStone Merchant Services, LLC that is either located outside of the U.S. and Canada or in transit to a destination outside the U.S. or Canada, to facilitate the financing of inventory of commodities and other products or goods approved by the lender in its sole discretion, subject to certain terms and conditions of the loan facility agreement.
|
|
|
|
Payments Due by Period
|
||||||||||||||||
(in millions)
|
Total
|
|
Less than 1 year
|
|
1 - 3 Years
|
|
3 - 5 Years
|
|
After 5 Years
|
||||||||||
Operating lease obligations
|
$
|
43.2
|
|
|
$
|
11.2
|
|
|
$
|
17.4
|
|
|
$
|
12.0
|
|
|
$
|
2.6
|
|
Purchase obligations(1)
|
2,889.7
|
|
|
2,889.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Payable to lenders under loans
|
202.3
|
|
|
128.9
|
|
|
73.4
|
|
|
—
|
|
|
—
|
|
|||||
Senior secured term loan
|
168.5
|
|
|
8.8
|
|
|
159.7
|
|
|
—
|
|
|
—
|
|
|||||
Contingent acquisition consideration
|
2.2
|
|
|
0.7
|
|
|
1.5
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
39.9
|
|
|
3.4
|
|
|
16.3
|
|
|
18
|
|
|
2.2
|
|
|||||
|
$
|
3,345.8
|
|
|
$
|
3,042.7
|
|
|
$
|
268.3
|
|
|
$
|
30.0
|
|
|
$
|
4.8
|
|
•
|
Diversification of business activities and instruments;
|
•
|
Limitations on positions;
|
•
|
Allocation of capital and limits based on estimated weighted risks; and
|
•
|
Daily monitoring of positions and mark-to-market profitability.
|
(in millions, except par value and share amounts)
|
September 30,
2019 |
|
September 30,
2018 |
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
471.3
|
|
|
$
|
342.3
|
|
Cash, securities and other assets segregated under federal and other regulations (including $306 and $643.3 at fair value at September 30, 2019 and September 30, 2018, respectively)
|
1,049.9
|
|
|
1,408.7
|
|
||
Collateralized transactions:
|
|
|
|
||||
Securities purchased under agreements to resell
|
1,424.5
|
|
|
870.8
|
|
||
Securities borrowed
|
1,423.2
|
|
|
225.5
|
|
||
Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net (including $626.9 and $517.4 at fair value at September 30, 2019 and September 30, 2018, respectively)
|
2,540.5
|
|
|
2,234.5
|
|
||
Receivable from clients, net
|
422.3
|
|
|
288.0
|
|
||
Notes receivable, net
|
2.9
|
|
|
3.8
|
|
||
Income taxes receivable
|
5.2
|
|
|
0.3
|
|
||
Financial instruments owned, at fair value (includes securities pledged as collateral that can be sold or repledged of $478.8 and $123 at September 30, 2019 and September 30, 2018, respectively)
|
2,175.2
|
|
|
2,054.8
|
|
||
Physical commodities inventory, net (including $151.9 and $156.9 at fair value at September 30, 2019 and September 30, 2018, respectively)
|
229.3
|
|
|
222.5
|
|
||
Deferred income taxes, net
|
18.0
|
|
|
19.8
|
|
||
Property and equipment, net
|
43.9
|
|
|
42.4
|
|
||
Goodwill and intangible assets, net
|
67.9
|
|
|
59.8
|
|
||
Other assets
|
62.0
|
|
|
51.5
|
|
||
Total assets
|
$
|
9,936.1
|
|
|
$
|
7,824.7
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Accounts payable and other accrued liabilities (including $1.8 and $0 at fair value at September 30, 2019 and September 30, 2018, respectively)
|
$
|
157.5
|
|
|
$
|
145.4
|
|
Payables to:
|
|
|
|
||||
Clients
|
3,589.5
|
|
|
3,639.6
|
|
||
Broker-dealers, clearing organizations and counterparties (including $5.6 and $0 at fair value at September 30, 2019 and September 30, 2018, respectively)
|
266.2
|
|
|
89.5
|
|
||
Lenders under loans
|
202.3
|
|
|
355.2
|
|
||
Senior secured term loan, net
|
167.6
|
|
|
—
|
|
||
Income taxes payable
|
10.4
|
|
|
8.6
|
|
||
Collateralized transactions:
|
|
|
|
||||
Securities sold under agreements to repurchase
|
2,773.7
|
|
|
1,936.7
|
|
||
Securities loaned
|
1,459.9
|
|
|
277.9
|
|
||
Financial instruments sold, not yet purchased, at fair value
|
714.8
|
|
|
866.5
|
|
||
Total liabilities
|
9,341.9
|
|
|
7,319.4
|
|
||
Commitments and contingencies (Note 12)
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
||||
Preferred stock, $0.01 par value. Authorized 1,000,000 shares; no shares issued or outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value. Authorized 30,000,000 shares; 21,297,317 issued and 19,075,360 outstanding at September 30, 2019 and 21,030,497 issued and 18,908,540 outstanding at September 30, 2018
|
0.2
|
|
|
0.2
|
|
||
Common stock in treasury, at cost - 2,221,957 shares at September 30, 2019 and 2,121,957 shares at September 30, 2018
|
(50.1
|
)
|
|
(46.3
|
)
|
||
Additional paid-in-capital
|
276.8
|
|
|
267.5
|
|
||
Total retained earnings
|
402.1
|
|
|
317.0
|
|
||
Accumulated other comprehensive loss
|
(34.8
|
)
|
|
(33.1
|
)
|
||
Total equity
|
594.2
|
|
|
505.3
|
|
||
Total liabilities and stockholders' equity
|
$
|
9,936.1
|
|
|
$
|
7,824.7
|
|
|
Year Ended September 30,
|
||||||||||
(in millions, except share and per share amounts)
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Sales of physical commodities
|
$
|
31,830.3
|
|
|
$
|
26,682.4
|
|
|
$
|
28,673.3
|
|
Principal gains, net
|
415.8
|
|
|
354.1
|
|
|
297.0
|
|
|||
Commission and clearing fees
|
372.4
|
|
|
391.8
|
|
|
318.6
|
|
|||
Consulting, management, and account fees
|
79.6
|
|
|
71.1
|
|
|
65.0
|
|
|||
Interest income
|
198.9
|
|
|
123.3
|
|
|
69.7
|
|
|||
Total revenues
|
32,897.0
|
|
|
27,622.7
|
|
|
29,423.6
|
|
|||
Cost of sales of physical commodities
|
31,790.9
|
|
|
26,646.9
|
|
|
28,639.6
|
|
|||
Operating revenues
|
1,106.1
|
|
|
975.8
|
|
|
784.0
|
|
|||
Transaction-based clearing expenses
|
183.5
|
|
|
179.7
|
|
|
136.3
|
|
|||
Introducing broker commissions
|
114.7
|
|
|
133.8
|
|
|
113.0
|
|
|||
Interest expense
|
154.7
|
|
|
80.7
|
|
|
42.1
|
|
|||
Net operating revenues
|
653.2
|
|
|
581.6
|
|
|
492.6
|
|
|||
Compensation and other expenses:
|
|
|
|
|
|
||||||
Compensation and benefits
|
393.1
|
|
|
337.7
|
|
|
295.7
|
|
|||
Trading systems and market information
|
38.8
|
|
|
34.7
|
|
|
34.4
|
|
|||
Occupancy and equipment rental
|
19.4
|
|
|
16.5
|
|
|
15.2
|
|
|||
Professional fees
|
21.0
|
|
|
18.1
|
|
|
15.2
|
|
|||
Travel and business development
|
16.2
|
|
|
13.8
|
|
|
13.3
|
|
|||
Non-trading technology and support
|
20.1
|
|
|
13.9
|
|
|
11.6
|
|
|||
Depreciation and amortization
|
14.0
|
|
|
11.6
|
|
|
9.8
|
|
|||
Communications
|
6.6
|
|
|
5.4
|
|
|
5.0
|
|
|||
Bad debts
|
2.5
|
|
|
3.1
|
|
|
4.3
|
|
|||
(Recovery) bad debt on physical coal
|
(12.4
|
)
|
|
1.0
|
|
|
47.0
|
|
|||
Other
|
28.4
|
|
|
26.3
|
|
|
25.9
|
|
|||
Total compensation and other expenses
|
547.7
|
|
|
482.1
|
|
|
477.4
|
|
|||
Other gains
|
5.5
|
|
|
2.0
|
|
|
—
|
|
|||
Income before tax
|
111.0
|
|
|
101.5
|
|
|
15.2
|
|
|||
Income tax expense
|
25.9
|
|
|
46.0
|
|
|
8.8
|
|
|||
Net income
|
$
|
85.1
|
|
|
$
|
55.5
|
|
|
$
|
6.4
|
|
|
|
|
|
|
|
||||||
Earnings per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
4.46
|
|
|
$
|
2.93
|
|
|
$
|
0.32
|
|
Diluted
|
$
|
4.39
|
|
|
$
|
2.87
|
|
|
$
|
0.31
|
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
18,738,905
|
|
|
18,549,011
|
|
|
18,395,987
|
|
|||
Diluted
|
19,014,395
|
|
|
18,934,830
|
|
|
18,687,354
|
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
$
|
85.1
|
|
|
$
|
55.5
|
|
|
$
|
6.4
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustment
|
(0.8
|
)
|
|
(9.0
|
)
|
|
(1.4
|
)
|
|||
Pension liabilities adjustment
|
(0.8
|
)
|
|
0.3
|
|
|
1.2
|
|
|||
Reclassification of adjustment for losses (gains) included in net income:
|
|
|
|
|
|
||||||
Periodic pension costs (included in compensation and benefits)
|
0.1
|
|
|
0.1
|
|
|
0.4
|
|
|||
Foreign currency gains realized upon dissolution of subsidiaries (included in principal gains, net)
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|||
Income tax expense from reclassification adjustments (included in income tax expense)
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||
Reclassification adjustment for losses (gains) included in net income
|
(0.1
|
)
|
|
0.1
|
|
|
0.3
|
|
|||
Other comprehensive (loss) income
|
(1.7
|
)
|
|
(8.6
|
)
|
|
0.1
|
|
|||
Comprehensive income
|
$
|
83.4
|
|
|
$
|
46.9
|
|
|
$
|
6.5
|
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
85.1
|
|
|
$
|
55.5
|
|
|
$
|
6.4
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||||||
(Recovery) bad debt on physical coal
|
(2.4
|
)
|
|
1.0
|
|
|
47.0
|
|
|||
Depreciation and amortization
|
14.0
|
|
|
11.6
|
|
|
9.8
|
|
|||
Provision for bad debts
|
2.5
|
|
|
3.1
|
|
|
4.3
|
|
|||
Deferred income taxes
|
3.7
|
|
|
22.3
|
|
|
(9.8
|
)
|
|||
Amortization and extinguishment of debt issuance costs
|
1.5
|
|
|
1.0
|
|
|
1.9
|
|
|||
Actuarial gain on pension and postretirement benefits
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|||
Amortization of share-based compensation expense
|
8.1
|
|
|
6.6
|
|
|
6.3
|
|
|||
Gain on sale of property and equipment
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|||
Gain on acquisition
|
(5.5
|
)
|
|
—
|
|
|
—
|
|
|||
Changes in operating assets and liabilities, net:
|
|
|
|
|
|
||||||
Cash, securities and other assets segregated under federal and other regulations
|
337.2
|
|
|
(626.7
|
)
|
|
570.8
|
|
|||
Securities purchased under agreements to resell
|
(553.7
|
)
|
|
(464.9
|
)
|
|
203.0
|
|
|||
Securities borrowed
|
(1,197.7
|
)
|
|
(138.8
|
)
|
|
(79.7
|
)
|
|||
Deposits with and receivables from broker-dealers, clearing organizations, and counterparties
|
(241.7
|
)
|
|
(292.9
|
)
|
|
186.3
|
|
|||
Receivable from clients, net
|
(134.3
|
)
|
|
(24.3
|
)
|
|
(116.4
|
)
|
|||
Notes receivable, net
|
0.9
|
|
|
6.8
|
|
|
8.3
|
|
|||
Income taxes receivable
|
(4.2
|
)
|
|
(1.3
|
)
|
|
0.5
|
|
|||
Financial instruments owned, at fair value
|
(113.3
|
)
|
|
(308.7
|
)
|
|
(125.6
|
)
|
|||
Physical commodities inventory
|
3.0
|
|
|
(98.7
|
)
|
|
(1.7
|
)
|
|||
Other assets
|
(8.3
|
)
|
|
(3.3
|
)
|
|
(16.0
|
)
|
|||
Accounts payable and other accrued liabilities
|
6.7
|
|
|
18.6
|
|
|
(19.6
|
)
|
|||
Payable to clients
|
(46.8
|
)
|
|
520.0
|
|
|
290.9
|
|
|||
Payable to broker-dealers, clearing organizations and counterparties
|
176.4
|
|
|
(27.8
|
)
|
|
(124.1
|
)
|
|||
Income taxes payable
|
1.8
|
|
|
3.2
|
|
|
0.2
|
|
|||
Securities sold under agreements to repurchase
|
837.0
|
|
|
543.7
|
|
|
226.0
|
|
|||
Securities loaned
|
1,182.0
|
|
|
166.8
|
|
|
93.6
|
|
|||
Financial instruments sold, not yet purchased, at fair value
|
(156.1
|
)
|
|
153.9
|
|
|
(124.4
|
)
|
|||
Net cash provided by (used in) operating activities
|
195.6
|
|
|
(473.6
|
)
|
|
1,037.4
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Cash paid for acquisitions, net
|
(28.9
|
)
|
|
(3.7
|
)
|
|
(6.0
|
)
|
|||
Purchase of exchange memberships and common stock
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|||
Sale of clearing organization common stock
|
—
|
|
|
0.8
|
|
|
—
|
|
|||
Purchase of property and equipment
|
(11.9
|
)
|
|
(12.5
|
)
|
|
(16.1
|
)
|
|||
Net cash used in investing activities
|
(40.8
|
)
|
|
(15.4
|
)
|
|
(22.3
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Net change in lenders under loans with maturities 90 days or less
|
(162.6
|
)
|
|
125.8
|
|
|
48.2
|
|
|||
Proceeds from lenders under loans with maturities greater than 90 days
|
357.2
|
|
|
—
|
|
|
—
|
|
|||
Repayments of lenders under loans with maturities greater than 90 days
|
(346.7
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from issuance of senior secured term loan
|
175.0
|
|
|
—
|
|
|
—
|
|
|||
Repayments of senior secured term loan
|
(6.6
|
)
|
|
—
|
|
|
—
|
|
|||
Repayment of senior notes
|
—
|
|
|
—
|
|
|
(45.5
|
)
|
|||
Repayments of note payable
|
(0.8
|
)
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|||
Deferred payments on acquisitions
|
—
|
|
|
(5.5
|
)
|
|
—
|
|
|||
Share repurchase
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|||
Debt issuance costs
|
(3.3
|
)
|
|
(0.4
|
)
|
|
(0.3
|
)
|
|||
Exercise of stock options
|
1.2
|
|
|
2.6
|
|
|
3.4
|
|
|||
Withholding taxes on stock option exercises
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|||
Income tax benefit on stock options and awards
|
—
|
|
|
—
|
|
|
0.7
|
|
|||
Net cash provided by financing activities
|
9.6
|
|
|
120.9
|
|
|
5.7
|
|
|||
Effect of exchange rates on cash, segregated cash, cash equivalents, and segregated cash equivalents
|
(0.7
|
)
|
|
(4.1
|
)
|
|
1.4
|
|
|||
Net increase (decrease) in cash, segregated cash, cash equivalents, and segregated cash equivalents
|
163.7
|
|
|
(372.2
|
)
|
|
1,022.2
|
|
|||
Cash, segregated cash, cash equivalents, and segregated cash equivalents at beginning of period
|
2,287.6
|
|
|
2,659.8
|
|
|
1,637.6
|
|
|||
Cash, segregated cash, cash equivalents, and segregated cash equivalents at end of period
|
$
|
2,451.3
|
|
|
$
|
2,287.6
|
|
|
$
|
2,659.8
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
(continued)
|
|
|
|
|
|
||||||
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
153.2
|
|
|
$
|
78.9
|
|
|
$
|
38.0
|
|
Income taxes paid, net of cash refunds
|
$
|
24.6
|
|
|
$
|
22.2
|
|
|
$
|
17.1
|
|
Supplemental disclosure of non-cash investing and financing activities:
|
|
|
|
|
|
|
|||||
Identified intangible assets and goodwill on acquisitions
|
$
|
10.8
|
|
|
$
|
3.9
|
|
|
$
|
—
|
|
Additional consideration payable related to acquisitions
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
(0.2
|
)
|
Acquisition of business:
|
|
|
|
|
|
||||||
Assets acquired
|
$
|
47.1
|
|
|
$
|
1.7
|
|
|
$
|
—
|
|
Liabilities acquired
|
(8.9
|
)
|
|
(1.9
|
)
|
|
—
|
|
|||
Total net assets acquired
|
$
|
38.2
|
|
|
$
|
(0.2
|
)
|
|
$
|
—
|
|
Escrow releases and deposits related to acquisitions
|
$
|
4.2
|
|
|
$
|
—
|
|
|
$
|
(5.0
|
)
|
|
September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash and cash equivalents
|
$
|
471.3
|
|
|
$
|
342.3
|
|
|
$
|
314.9
|
|
Cash segregated under federal and other regulations(1)
|
743.9
|
|
|
765.5
|
|
|
463.4
|
|
|||
Cash segregated and deposited with or pledged to exchange-clearing organizations and other futures commission merchants (“FCMs”)(2)
|
947.4
|
|
|
711.9
|
|
|
1,870.9
|
|
|||
Securities segregated and pledged to exchange-clearing organizations(2)
|
288.7
|
|
|
467.9
|
|
|
10.6
|
|
|||
Total cash, segregated cash, cash equivalents, and segregated cash equivalents shown in the consolidated statements of cash flows
|
$
|
2,451.3
|
|
|
$
|
2,287.6
|
|
|
$
|
2,659.8
|
|
(in millions)
|
Common
Stock
|
|
Treasury
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
|
||||||||||||
Balances as of September 30, 2016
|
$
|
0.2
|
|
|
$
|
(46.3
|
)
|
|
$
|
249.4
|
|
|
$
|
255.1
|
|
|
$
|
(24.6
|
)
|
|
$
|
433.8
|
|
Net income
|
|
|
|
|
|
|
6.4
|
|
|
|
|
6.4
|
|
||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
0.1
|
|
|
0.1
|
|
||||||||||
Exercise of stock options
|
|
|
|
|
3.3
|
|
|
|
|
|
|
3.3
|
|
||||||||||
Share-based compensation
|
|
|
|
|
6.3
|
|
|
|
|
|
|
6.3
|
|
||||||||||
Balances as of September 30, 2017
|
0.2
|
|
|
(46.3
|
)
|
|
259.0
|
|
|
261.5
|
|
|
(24.5
|
)
|
|
449.9
|
|
||||||
Net income
|
|
|
|
|
|
|
55.5
|
|
|
|
|
55.5
|
|
||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
(8.6
|
)
|
|
(8.6
|
)
|
||||||||||
Exercise of stock options
|
|
|
|
|
1.9
|
|
|
|
|
|
|
1.9
|
|
||||||||||
Share-based compensation
|
|
|
|
|
6.6
|
|
|
|
|
|
|
6.6
|
|
||||||||||
Balances as of September 30, 2018
|
0.2
|
|
|
(46.3
|
)
|
|
267.5
|
|
|
317.0
|
|
|
(33.1
|
)
|
|
505.3
|
|
||||||
Net income
|
|
|
|
|
|
|
85.1
|
|
|
|
|
85.1
|
|
||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
(1.7
|
)
|
|
(1.7
|
)
|
||||||||||
Exercise of stock options
|
|
|
|
|
1.2
|
|
|
|
|
|
|
1.2
|
|
||||||||||
Share-based compensation
|
|
|
|
|
8.1
|
|
|
|
|
|
|
8.1
|
|
||||||||||
Repurchase of stock
|
|
|
(3.8
|
)
|
|
|
|
|
|
|
|
|
(3.8
|
)
|
|||||||||
Balances as of September 30, 2019
|
$
|
0.2
|
|
|
$
|
(50.1
|
)
|
|
$
|
276.8
|
|
|
$
|
402.1
|
|
|
$
|
(34.8
|
)
|
|
$
|
594.2
|
|
|
Year Ended September 30,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues from contracts with clients:
|
|
|
|
|
|
||||||
Commission and clearing fees:
|
|
|
|
|
|
||||||
Sales-based:
|
|
|
|
|
|
||||||
Exchange-traded futures and options
|
$
|
144.9
|
|
|
$
|
163.4
|
|
|
$
|
129.7
|
|
OTC derivative brokerage
|
32.1
|
|
30.3
|
|
|
28.3
|
|
||||
Equities and fixed income
|
16.1
|
|
11.2
|
|
|
16.0
|
|
||||
Mutual funds
|
7.5
|
|
7.2
|
|
|
7.9
|
|
||||
Insurance and annuity products
|
7.3
|
|
5.8
|
|
|
6.0
|
|
||||
Other
|
1.3
|
|
0.9
|
|
|
2.0
|
|
||||
Total sales-based commission
|
209.2
|
|
|
218.8
|
|
|
189.9
|
|
|||
Trailing:
|
|
|
|
|
|
||||||
Mutual funds
|
12.4
|
|
|
13.2
|
|
|
13.1
|
|
|||
Insurance and annuity products
|
14.4
|
|
|
14.6
|
|
|
14.2
|
|
|||
Total trailing commission
|
26.8
|
|
|
27.8
|
|
|
27.3
|
|
|||
|
|
|
|
|
|
||||||
Clearing fees
|
118.8
|
|
|
123.3
|
|
|
88.5
|
|
|||
Trade conversion fees
|
7.5
|
|
|
6.8
|
|
|
—
|
|
|||
Other
|
10.1
|
|
|
15.1
|
|
|
12.9
|
|
|||
Total commission and clearing fees:
|
372.4
|
|
|
391.8
|
|
|
318.6
|
|
|||
|
|
|
|
|
|
||||||
Consulting, management, and account fees:
|
|
|
|
|
|
||||||
Underwriting fees
|
0.7
|
|
|
1.7
|
|
|
2.3
|
|
|||
Asset management fees
|
26.2
|
|
|
24.8
|
|
|
25.7
|
|
|||
Advisory and consulting fees
|
20.0
|
|
|
19.0
|
|
|
17.7
|
|
|||
Sweep program fees
|
16.3
|
|
|
11.6
|
|
|
6.0
|
|
|||
Client account fees
|
10.6
|
|
|
11.1
|
|
|
10.8
|
|
|||
Other
|
5.8
|
|
|
2.9
|
|
|
2.5
|
|
|||
Total consulting, management, and account fees
|
79.6
|
|
|
71.1
|
|
|
65.0
|
|
|||
Total revenues from contracts with clients
|
$
|
452.0
|
|
|
$
|
462.9
|
|
|
$
|
383.6
|
|
|
|
|
|
|
|
||||||
Method of revenue recognition:
|
|
|
|
|
|
||||||
Point-in-time
|
$
|
362.7
|
|
|
$
|
379.7
|
|
|
$
|
306.9
|
|
Time elapsed
|
89.3
|
|
|
83.2
|
|
|
76.7
|
|
|||
Total revenues from contracts with clients
|
452.0
|
|
|
462.9
|
|
|
383.6
|
|
|||
Other sources of revenues
|
|
|
|
|
|
||||||
Physical precious metals trading
|
30,694.5
|
|
|
25,762.9
|
|
|
28,018.4
|
|
|||
Physical agricultural and energy product trading
|
1,135.8
|
|
|
919.5
|
|
|
654.9
|
|
|||
Principal gains, net
|
415.8
|
|
|
354.1
|
|
|
297.0
|
|
|||
Interest income
|
198.9
|
|
|
123.3
|
|
|
69.7
|
|
|||
Total revenues
|
$
|
32,897.0
|
|
|
$
|
27,622.7
|
|
|
$
|
29,423.6
|
|
|
|
|
|
|
|
|
Year Ended September 30,
|
||||||||||
(in millions, except share amounts)
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income
|
$
|
85.1
|
|
|
$
|
55.5
|
|
|
$
|
6.4
|
|
Less: Allocation to participating securities
|
(1.5
|
)
|
|
(0.9
|
)
|
|
(0.1
|
)
|
|||
Net income allocated to common stockholders
|
$
|
83.6
|
|
|
$
|
54.6
|
|
|
$
|
6.3
|
|
Denominator:
|
|
|
|
|
|
||||||
Weighted average number of:
|
|
|
|
|
|
||||||
Common shares outstanding
|
18,738,905
|
|
|
18,549,011
|
|
|
18,395,987
|
|
|||
Dilutive potential common shares outstanding:
|
|
|
|
|
|
||||||
Share-based awards
|
275,490
|
|
|
385,819
|
|
|
291,367
|
|
|||
Diluted shares outstanding
|
19,014,395
|
|
|
18,934,830
|
|
|
18,687,354
|
|
|
September 30, 2019
|
||||||||||||||||||
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting (1)
|
|
Total
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Certificates of deposit
|
$
|
4.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4.9
|
|
Money market mutual funds
|
8.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.9
|
|
|||||
Cash and cash equivalents
|
13.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.8
|
|
|||||
Commodities warehouse receipts
|
6.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.2
|
|
|||||
U.S. Treasury obligations
|
299.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
299.8
|
|
|||||
Securities and other assets segregated under federal and other regulations
|
306.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
306.0
|
|
|||||
U.S. Treasury obligations
|
593.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
593.9
|
|
|||||
"To be announced" (TBA) and forward settling securities
|
—
|
|
|
9.8
|
|
|
—
|
|
|
(1.5
|
)
|
|
8.3
|
|
|||||
Foreign government obligations
|
9.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.9
|
|
|||||
Derivatives
|
3,131.2
|
|
|
43.2
|
|
|
—
|
|
|
(3,159.6
|
)
|
|
14.8
|
|
|||||
Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net
|
3,735.0
|
|
|
53.0
|
|
|
—
|
|
|
(3,161.1
|
)
|
|
626.9
|
|
|||||
Equity securities
|
159.5
|
|
|
9.0
|
|
|
—
|
|
|
—
|
|
|
168.5
|
|
|||||
Corporate and municipal bonds
|
—
|
|
|
80.0
|
|
|
—
|
|
|
—
|
|
|
80.0
|
|
|||||
U.S. Treasury obligations
|
248.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
248.7
|
|
|||||
U.S. government agency obligations
|
—
|
|
|
447.1
|
|
|
—
|
|
|
—
|
|
|
447.1
|
|
|||||
Foreign government obligations
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|||||
Agency mortgage-backed obligations
|
—
|
|
|
1,045.0
|
|
|
—
|
|
|
—
|
|
|
1,045.0
|
|
|||||
Asset-backed obligations
|
—
|
|
|
29.1
|
|
|
—
|
|
|
—
|
|
|
29.1
|
|
|||||
Derivatives
|
1.0
|
|
|
486.3
|
|
|
—
|
|
|
(420.8
|
)
|
|
66.5
|
|
|||||
Commodities leases
|
—
|
|
|
28.6
|
|
|
—
|
|
|
—
|
|
|
28.6
|
|
|||||
Commodities warehouse receipts
|
48.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48.4
|
|
|||||
Exchange firm common stock
|
12.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.7
|
|
|||||
Mutual funds and other
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||||
Financial instruments owned
|
470.9
|
|
|
2,125.1
|
|
|
—
|
|
|
(420.8
|
)
|
|
2,175.2
|
|
|||||
Physical commodities inventory
|
7.1
|
|
|
144.8
|
|
|
—
|
|
|
—
|
|
|
151.9
|
|
|||||
Total assets at fair value
|
$
|
4,532.8
|
|
|
$
|
2,322.9
|
|
|
$
|
—
|
|
|
$
|
(3,581.9
|
)
|
|
$
|
3,273.8
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and other accrued liabilities - contingent liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
TBA and forward settling securities
|
—
|
|
|
6.8
|
|
|
—
|
|
|
(1.5
|
)
|
|
5.3
|
|
|||||
Derivatives
|
3,079.1
|
|
|
38.3
|
|
|
—
|
|
|
(3,117.1
|
)
|
|
0.3
|
|
|||||
Payable to broker-dealers, clearing organizations and counterparties
|
3,079.1
|
|
|
45.1
|
|
|
—
|
|
|
(3,118.6
|
)
|
|
5.6
|
|
|||||
Equity securities
|
147.3
|
|
|
10.8
|
|
|
—
|
|
|
—
|
|
|
158.1
|
|
|||||
Foreign government obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Corporate and municipal bonds
|
—
|
|
|
39.2
|
|
|
—
|
|
|
—
|
|
|
39.2
|
|
|||||
U.S. Treasury obligations
|
272.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
272.3
|
|
|||||
U.S. government agency obligations
|
—
|
|
|
43.8
|
|
|
—
|
|
|
—
|
|
|
43.8
|
|
|||||
Agency mortgage-backed obligations
|
—
|
|
|
29.6
|
|
|
—
|
|
|
—
|
|
|
29.6
|
|
|||||
Derivatives
|
|
|
480.3
|
|
|
—
|
|
|
(422.2
|
)
|
|
58.1
|
|
||||||
Commodities leases
|
$
|
—
|
|
|
$
|
113.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
113.7
|
|
Financial instruments sold, not yet purchased
|
419.6
|
|
|
717.4
|
|
|
—
|
|
|
(422.2
|
)
|
|
714.8
|
|
|||||
Total liabilities at fair value
|
$
|
3,498.7
|
|
|
$
|
762.5
|
|
|
$
|
1.8
|
|
|
$
|
(3,540.8
|
)
|
|
$
|
722.2
|
|
(1)
|
Represents cash collateral and the impact of netting across the levels of the fair value hierarchy. Netting among positions classified within the same level are included in that level.
|
|
September 30, 2018
|
||||||||||||||||||
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting (1)
|
|
Total
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents - certificaes of deposit
|
$
|
3.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.8
|
|
Commodities warehouse receipts
|
42.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42.9
|
|
|||||
U.S. Treasury obligations
|
600.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
600.4
|
|
|||||
Securities and other assets segregated under federal and other regulations
|
643.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
643.3
|
|
|||||
U.S. Treasury obligations
|
778.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
778.4
|
|
|||||
TBA and forward settling securities
|
—
|
|
|
5.0
|
|
|
—
|
|
|
(2.1
|
)
|
|
2.9
|
|
|||||
Foreign government obligations
|
7.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.7
|
|
|||||
Derivatives
|
7,495.9
|
|
|
19.6
|
|
|
—
|
|
|
(7,787.1
|
)
|
|
(271.6
|
)
|
|||||
Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net
|
8,282.0
|
|
|
24.6
|
|
|
—
|
|
|
(7,789.2
|
)
|
|
517.4
|
|
|||||
Equity securities
|
71.2
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
74.2
|
|
|||||
Corporate and municipal bonds
|
—
|
|
|
79.1
|
|
|
—
|
|
|
—
|
|
|
79.1
|
|
|||||
U.S. Treasury obligations
|
120.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120.1
|
|
|||||
U.S. government agency obligations
|
—
|
|
|
472.9
|
|
|
—
|
|
|
—
|
|
|
472.9
|
|
|||||
Foreign government obligations
|
6.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.4
|
|
|||||
Agency mortgage-backed obligations
|
—
|
|
|
1,022.5
|
|
|
—
|
|
|
—
|
|
|
1,022.5
|
|
|||||
Asset-backed obligations
|
—
|
|
|
42.9
|
|
|
—
|
|
|
—
|
|
|
42.9
|
|
|||||
Derivatives
|
0.8
|
|
|
514.6
|
|
|
—
|
|
|
(329.3
|
)
|
|
186.1
|
|
|||||
Commodities leases
|
—
|
|
|
29.5
|
|
|
—
|
|
|
(11.8
|
)
|
|
17.7
|
|
|||||
Commodities warehouse receipts
|
16.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16.4
|
|
|||||
Exchange firm common stock
|
10.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.2
|
|
|||||
Mutual funds and other
|
6.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
|||||
Financial instruments owned
|
231.4
|
|
|
2,164.5
|
|
|
—
|
|
|
(341.1
|
)
|
|
2,054.8
|
|
|||||
Physical commodities inventory
|
42.1
|
|
|
114.8
|
|
|
—
|
|
|
—
|
|
|
156.9
|
|
|||||
Total assets at fair value
|
$
|
9,202.6
|
|
|
$
|
2,303.9
|
|
|
$
|
—
|
|
|
$
|
(8,130.3
|
)
|
|
$
|
3,376.2
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
TBA and forward settling securities
|
$
|
—
|
|
|
$
|
2.1
|
|
|
$
|
—
|
|
|
$
|
(2.1
|
)
|
|
$
|
—
|
|
Derivatives
|
7,809.3
|
|
|
11.6
|
|
|
—
|
|
|
(7,820.9
|
)
|
|
—
|
|
|||||
Payable to broker-dealers, clearing organizations and counterparties
|
7,809.3
|
|
|
13.7
|
|
|
—
|
|
|
(7,823.0
|
)
|
|
—
|
|
|||||
Equity securities
|
51.1
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
51.5
|
|
|||||
Corporate and municipal bonds
|
—
|
|
|
20.1
|
|
|
—
|
|
|
—
|
|
|
20.1
|
|
|||||
U.S. Treasury obligations
|
484.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
484.8
|
|
|||||
U.S. government agency obligations
|
—
|
|
|
57.2
|
|
|
—
|
|
|
—
|
|
|
57.2
|
|
|||||
Agency mortgage-backed obligations
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||
Derivatives
|
|
|
688.0
|
|
|
—
|
|
|
(494.6
|
)
|
|
193.4
|
|
||||||
Commodities leases
|
—
|
|
|
75.5
|
|
|
—
|
|
|
(16.2
|
)
|
|
59.3
|
|
|||||
Financial instruments sold, not yet purchased
|
535.9
|
|
|
841.4
|
|
|
—
|
|
|
(510.8
|
)
|
|
866.5
|
|
|||||
Total liabilities at fair value
|
$
|
8,345.2
|
|
|
$
|
855.1
|
|
|
$
|
—
|
|
|
$
|
(8,333.8
|
)
|
|
$
|
866.5
|
|
(1)
|
Represents cash collateral and the impact of netting across the levels of the fair value hierarchy. Netting among positions classified within the same level are included in that level.
|
|
Level 3 Financial Liabilities
For the Year Ended September 30, 2019 |
||||||||||||||||||||||||||
(in millions)
|
Balances at
beginning of period |
|
Realized (gains)
losses during period |
|
Remeasurement
(gains) losses during period |
|
Acquisitions
|
|
Settlements
|
|
Transfers in
or (out) of Level 3 |
|
Balances at
end of period |
||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Contingent liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
|
Level 3 Financial Assets and Financial Liabilities
For the Year Ended September 30, 2018 |
||||||||||||||||||||||||||
(in millions)
|
Balances at
beginning of period |
|
Realized gains
(losses) during period |
|
Unrealized
gains (losses) during period |
|
Purchases/
issuances |
|
Settlements
|
|
Transfers in
or (out) of Level 3 |
|
Balances at
end of period |
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Equity securities
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(in millions)
|
Balances at
beginning of period |
|
Realized (gains)
losses during period |
|
Remeasurement
(gains) losses during period |
|
Acquisitions
|
|
Settlements
|
|
Transfers in
or (out) of Level 3 |
|
Balances at
end of period |
||||||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Contingent liabilities
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(1.0
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
September 30, 2019
|
|
September 30, 2018
|
||||||||||||
(in millions)
|
Assets (1)
|
|
Liabilities (1)
|
|
Assets (1)
|
|
Liabilities (1)
|
||||||||
Derivative contracts not accounted for as hedges:
|
|
|
|
|
|
|
|
||||||||
Exchange-traded commodity derivatives
|
$
|
1,437.1
|
|
|
$
|
1,463.4
|
|
|
$
|
2,455.7
|
|
|
$
|
2,499.3
|
|
OTC commodity derivatives
|
84.2
|
|
|
106.2
|
|
|
207.0
|
|
|
369.9
|
|
||||
Exchange-traded foreign exchange derivatives
|
36.9
|
|
|
33.5
|
|
|
49.8
|
|
|
37.2
|
|
||||
OTC foreign exchange derivatives
|
403.2
|
|
|
368.8
|
|
|
302.5
|
|
|
303.9
|
|
||||
Exchange-traded interest rate derivatives
|
900.1
|
|
|
882.0
|
|
|
449.3
|
|
|
478.7
|
|
||||
OTC interest rate derivatives
|
42.1
|
|
|
43.6
|
|
|
24.8
|
|
|
25.9
|
|
||||
Exchange-traded equity index derivatives
|
758.1
|
|
|
700.2
|
|
|
4,541.8
|
|
|
4,794.0
|
|
||||
TBA and forward settling securities
|
9.8
|
|
|
6.8
|
|
|
5.0
|
|
|
2.1
|
|
||||
Gross fair value of derivative contracts
|
3,671.5
|
|
|
3,604.5
|
|
|
8,035.9
|
|
|
8,511.0
|
|
||||
Impact of netting and collateral
|
(3,581.9
|
)
|
|
(3,540.8
|
)
|
|
(8,118.5
|
)
|
|
(8,317.6
|
)
|
||||
Total fair value included in 'Deposits with and receivables from broker-dealers, clearing organizations, and counterparties'
|
$
|
23.1
|
|
|
|
|
$
|
(268.7
|
)
|
|
|
||||
Total fair value included in 'Financial instruments owned, at fair value
|
$
|
66.5
|
|
|
|
|
$
|
186.1
|
|
|
|
||||
Total fair value included in 'Payables to broker-dealers, clearing organizations and counterparties
|
|
|
$
|
5.6
|
|
|
|
|
$
|
—
|
|
||||
Fair value included in 'Financial instruments sold, not yet purchased, at fair value'
|
|
|
$
|
58.1
|
|
|
|
|
$
|
193.4
|
|
(1)
|
As of September 30, 2019 and 2018, the Company’s derivative contract volume for open positions was approximately 10.6 million contracts.
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Commodities
|
$
|
100.8
|
|
|
$
|
94.0
|
|
|
$
|
47.3
|
|
Foreign exchange
|
8.1
|
|
|
9.2
|
|
|
8.7
|
|
|||
Interest rate and equity
|
(2.6
|
)
|
|
1.0
|
|
|
(0.1
|
)
|
|||
TBA and forward settling securities
|
(35.3
|
)
|
|
14.5
|
|
|
(2.5
|
)
|
|||
Net gains from derivative contracts
|
$
|
71.0
|
|
|
$
|
118.7
|
|
|
$
|
53.4
|
|
(in millions)
|
September 30,
2019 |
|
September 30,
2018 |
||||
Physical Ag & Energy(1)
|
$
|
144.8
|
|
|
$
|
114.7
|
|
Precious metals - held by broker-dealer subsidiary(2)
|
7.1
|
|
|
42.1
|
|
||
Precious metals - held by non-broker-dealer subsidiaries(3)
|
77.4
|
|
|
65.7
|
|
||
Physical commodities inventory
|
$
|
229.3
|
|
|
$
|
222.5
|
|
(in millions)
|
September 30, 2019
|
|
September 30, 2018
|
||||
Property and equipment:
|
|
|
|
||||
Furniture and fixtures
|
$
|
10.6
|
|
|
$
|
8.7
|
|
Software
|
33.9
|
|
|
30.5
|
|
||
Equipment
|
28.1
|
|
|
24.7
|
|
||
Leasehold improvements
|
20.3
|
|
|
17.0
|
|
||
Total property and equipment
|
92.9
|
|
|
80.9
|
|
||
Less accumulated depreciation
|
(49.0
|
)
|
|
(38.5
|
)
|
||
Property and equipment, net
|
$
|
43.9
|
|
|
$
|
42.4
|
|
(in millions)
|
September 30,
2019 |
|
September 30,
2018 |
||||
Commerical Hedging
|
$
|
30.3
|
|
|
$
|
30.3
|
|
Global Payments
|
7.6
|
|
|
8.9
|
|
||
Physical Commodities
|
4.6
|
|
|
2.4
|
|
||
Securities
|
8.7
|
|
|
6.8
|
|
||
Goodwill
|
$
|
51.2
|
|
|
$
|
48.4
|
|
|
September 30, 2019
|
|
September 30, 2018
|
||||||||||||||||||||
|
Gross Amount
|
|
Accumulated
Amortization
|
|
Net Amount
|
|
Gross Amount
|
|
Accumulated
Amortization
|
|
Net Amount
|
||||||||||||
Intangible assets subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software programs/platforms
|
$
|
5.3
|
|
|
$
|
(3.0
|
)
|
|
$
|
2.3
|
|
|
$
|
2.7
|
|
|
$
|
(2.6
|
)
|
|
$
|
0.1
|
|
Client base
|
22.1
|
|
|
(12.5
|
)
|
|
9.6
|
|
|
21.4
|
|
|
(10.1
|
)
|
|
11.3
|
|
||||||
Total intangible assets subject to amortization
|
27.4
|
|
|
(15.5
|
)
|
|
11.9
|
|
|
24.1
|
|
|
(12.7
|
)
|
|
11.4
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Intangible assets not subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Website domains
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Business licenses
|
2.7
|
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total intangible assets not subject to amortization
|
4.8
|
|
|
—
|
|
|
4.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total intangible assets
|
$
|
32.2
|
|
|
$
|
(15.5
|
)
|
|
$
|
16.7
|
|
|
$
|
24.1
|
|
|
$
|
(12.7
|
)
|
|
$
|
11.4
|
|
•
|
A three-year first-lien senior secured syndicated loan facility under which $386.4 million is available to the Company for general working capital requirements and capital expenditures. On February 22, 2019, the Company amended its existing $262.0 million senior secured syndicated credit facility, to extend the maturity date through February 2022 and to increase the size of the facility to $350.0 million. Subsequent to September 30, 2019, additional members were added to the syndication further increasing the committed amount to $393.0 million. The amended facility is comprised of a $196.5 million revolving credit facility and a $196.5 million Term Loan facility.
|
•
|
An unsecured syndicated committed line of credit under which $75.0 million is available to the Company’s wholly owned subsidiary, INTL FCStone Financial to provide short term funding of margin to commodity exchanges as necessary. This line of credit is subject to annual review, and the continued availability of this line of credit is subject to INTL FCStone Financial’s financial condition and operating results continuing to be satisfactory as set forth in the agreement. Unused portions of the margin line require a commitment fee of 0.50% on the unused commitment. Borrowings under the margin line are on a demand basis and bear interest at the Base Rate, as defined, plus 2.00%, which was 7.25% as of September 30, 2019. The agreement contains financial covenants related to INTL FCStone Financial’s tangible net worth, excess net capital and maximum net loss over a trailing twelve month period, as defined. INTL FCStone Financial was in compliance with these covenants as of September 30, 2019. The facility is guaranteed by the Company.
|
•
|
A syndicated committed borrowing facility under which $232.5 million is available to the Company’s wholly owned subsidiary, FCStone Merchant Services, LLC (“FCStone Merchants”) to finance commodity financing arrangements and commodity repurchase agreements. The facility is secured by the assets of FCStone Merchants, and guaranteed by the Company. Unused portions of the borrowing facility require a commitment fee of 0.38% on the unused commitment. The borrowings outstanding under the facility bear interest at a rate per annum equal to the Eurodollar Rate plus Applicable Margin, as defined, or the Base Rate plus Applicable Margin, as defined. Borrowings under the Base Rate and Eurodollar options were subject to interest rates of 5.0% and 4.5%, respectively, as of September 30, 2019. The agreement contains financial covenants related to tangible net worth, as defined. FCStone Merchants was in compliance with this covenant as of September 30, 2019.
|
•
|
An unsecured syndicated committed borrowing facility under which $50.0 million is available to the Company’s wholly owned subsidiary, INTL FCStone Ltd for short term funding of margin to commodity exchanges. The borrowings outstanding under the facility bear interest at a rate per annum equal to 2.50% plus the Federal Funds Rate, as defined. The agreement contains financial covenants related to consolidated tangible net worth, as defined. INTL FCStone Ltd was in compliance with this covenant as of September 30, 2019. The facility is guaranteed by the Company.
|
Subsidiary
|
Regulatory Authority
|
Actual
|
|
Minimum
Requirement
|
||||
INTL FCStone Financial Inc.
|
SEC and CFTC
|
$
|
170.1
|
|
|
$
|
97.5
|
|
INTL FCStone Ltd
|
FCA
|
$
|
231.7
|
|
|
$
|
123.3
|
|
|
September 30, 2019
|
|||||||||||
|
Overnight and Open
|
Less than 30 Days
|
30-90 Days
|
Total
|
||||||||
Securities sold under agreements to repurchase
|
$
|
1,553.9
|
|
$
|
565.8
|
|
$
|
654.0
|
|
$
|
2,773.7
|
|
Securities loaned
|
1459.9
|
|
—
|
|
—
|
|
1,459.9
|
|
||||
Gross amount of secured financing
|
$
|
3,013.8
|
|
$
|
565.8
|
|
$
|
654.0
|
|
$
|
4,233.6
|
|
|
September 30, 2018
|
|||||||||||
|
Overnight and Open
|
Less than 30 Days
|
30-90 Days
|
Total
|
||||||||
Securities sold under agreements to repurchase
|
$
|
934.9
|
|
$
|
661.3
|
|
$
|
340.5
|
|
$
|
1,936.7
|
|
Securities loaned
|
277.9
|
|
—
|
|
—
|
|
277.9
|
|
||||
Gross amount of secured financing
|
$
|
1,212.8
|
|
$
|
661.3
|
|
$
|
340.5
|
|
$
|
2,214.6
|
|
Securities sold under agreements to repurchase
|
September 30, 2019
|
|
September 30, 2018
|
||||
U.S. Treasury obligations
|
$
|
108.8
|
|
|
$
|
39.6
|
|
U.S. government agency obligations
|
359.5
|
|
|
461.7
|
|
||
Asset-backed obligations
|
96.7
|
|
|
50.0
|
|
||
Agency mortgage-backed obligations
|
2,208.7
|
|
|
1,385.4
|
|
||
Total securities sold under agreement to repurchase
|
$
|
2,773.7
|
|
|
$
|
1,936.7
|
|
|
|
|
|
||||
Securities loaned
|
|
|
|
||||
Equity securities
|
1,459.9
|
|
|
277.9
|
|
||
Total securities loaned
|
1,459.9
|
|
|
277.9
|
|
||
Gross amount of secured financing
|
$
|
4,233.6
|
|
|
$
|
2,214.6
|
|
|
September 30, 2019
|
||||||||
Offsetting of collateralized transactions:
|
Gross Amounts Recognized
|
Amounts Offset in the Consolidated Balance Sheet
|
Net Amounts Presented in the Consolidated Balance Sheet
|
||||||
Securities purchased under agreements to resell
|
$
|
1,474.4
|
|
$
|
(49.9
|
)
|
$
|
1,424.5
|
|
Securities borrowed
|
$
|
1,423.2
|
|
$
|
—
|
|
$
|
1,423.2
|
|
Securities sold under agreements to repurchase
|
$
|
2,823.6
|
|
$
|
(49.9
|
)
|
$
|
2,773.7
|
|
Securities loaned
|
$
|
1,459.9
|
|
$
|
—
|
|
$
|
1,459.9
|
|
|
September 30, 2018
|
||||||||
Offsetting of collateralized transactions:
|
Gross Amounts Recognized
|
Amounts Offset in the Consolidated Balance Sheet
|
Net Amounts Presented in the Consolidated Balance Sheet
|
||||||
Securities purchased under agreements to resell
|
$
|
870.8
|
|
$
|
—
|
|
$
|
870.8
|
|
Securities borrowed
|
$
|
225.5
|
|
$
|
—
|
|
$
|
225.5
|
|
Securities sold under agreements to repurchase
|
$
|
1,936.7
|
|
$
|
—
|
|
$
|
1,936.7
|
|
Securities loaned
|
$
|
277.9
|
|
$
|
—
|
|
$
|
277.9
|
|
|
Year ended September 30, 2019
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Expected stock price volatility
|
27
|
%
|
|
30
|
%
|
|
31
|
%
|
Expected dividend yield
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Risk free interest rate
|
1.86
|
%
|
|
1.23
|
%
|
|
0.99
|
%
|
Average expected life (in years)
|
6.05
|
|
|
3.06
|
|
|
3.08
|
|
|
Shares
Available for
Grant
|
|
Number of
Options
Outstanding
|
|
Weighted
Average
Exercise Price
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Weighted
Average
Remaining
Term
(in years)
|
|
Aggregate
Intrinsic
Value
($ millions)
|
||||||||
Balances at September 30, 2018
|
588,020
|
|
|
835,454
|
|
|
$
|
29.27
|
|
|
$
|
11.93
|
|
|
3.01
|
|
$
|
15.9
|
|
Additional shares authorized by shareholders
|
1,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Granted
|
(922,000
|
)
|
|
922,000
|
|
|
$
|
44.31
|
|
|
$
|
10.47
|
|
|
|
|
|
||
Exercised
|
|
|
(46,444
|
)
|
|
$
|
25.04
|
|
|
$
|
5.21
|
|
|
|
|
|
|||
Forfeited
|
25,048
|
|
|
(25,048
|
)
|
|
$
|
31.31
|
|
|
$
|
11.91
|
|
|
|
|
|
||
Expired
|
1,584
|
|
|
(1,584
|
)
|
|
$
|
33.83
|
|
|
$
|
7.46
|
|
|
|
|
|
||
Balances at September 30, 2019
|
692,652
|
|
|
1,684,378
|
|
|
$
|
37.59
|
|
|
$
|
11.32
|
|
|
4.62
|
|
$
|
9.2
|
|
Exercisable at September 30, 2019
|
|
|
472,424
|
|
|
$
|
28.96
|
|
|
$
|
12.27
|
|
|
2.08
|
|
$
|
5.8
|
|
Exercise Price
|
|
Number of Options Outstanding
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Term
(in Years) |
|||||||||
$
|
—
|
|
-
|
$
|
5.00
|
|
|
—
|
|
|
n/a
|
|
|
n/a
|
|
$
|
5.00
|
|
-
|
$
|
10.00
|
|
|
—
|
|
|
n/a
|
|
|
n/a
|
|
$
|
10.00
|
|
-
|
$
|
15.00
|
|
|
—
|
|
|
n/a
|
|
|
n/a
|
|
$
|
15.00
|
|
-
|
$
|
20.00
|
|
|
—
|
|
|
n/a
|
|
|
n/a
|
|
$
|
20.00
|
|
-
|
$
|
25.00
|
|
|
—
|
|
|
n/a
|
|
|
n/a
|
|
$
|
25.00
|
|
-
|
$
|
30.00
|
|
|
564,000
|
|
|
$
|
25.91
|
|
|
2.37
|
$
|
30.00
|
|
-
|
$
|
35.00
|
|
|
32,881
|
|
|
$
|
31.37
|
|
|
0.28
|
$
|
35.00
|
|
-
|
$
|
40.00
|
|
|
213,830
|
|
|
$
|
39.33
|
|
|
2.43
|
$
|
40.00
|
|
-
|
$
|
45.00
|
|
|
871,667
|
|
|
$
|
44.91
|
|
|
6.78
|
$
|
45.00
|
|
-
|
$
|
50.00
|
|
|
—
|
|
|
n/a
|
|
|
n/a
|
|
$
|
50.00
|
|
-
|
$
|
55.00
|
|
|
—
|
|
|
|
n/a
|
|
|
n/a
|
$
|
55.00
|
|
-
|
$
|
60.00
|
|
|
2,000
|
|
|
$
|
55.28
|
|
|
2.89
|
|
|
|
|
1,684,378
|
|
|
$
|
37.59
|
|
|
4.62
|
|
Shares
Available for
Grant
|
|
Number of
Shares
Outstanding
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Weighted
Average
Remaining
Term
(in years)
|
|
Aggregate
Intrinsic Value
($ millions)
|
||||||
Balances at September 30, 2018
|
1,377,278
|
|
|
274,628
|
|
|
$
|
38.20
|
|
|
1.15
|
|
$
|
13.3
|
|
Granted
|
(223,481
|
)
|
|
223,481
|
|
|
$
|
39.57
|
|
|
|
|
|
||
Vested
|
—
|
|
|
(144,226
|
)
|
|
$
|
35.85
|
|
|
|
|
|
||
Forfeited
|
3,105
|
|
|
(3,105
|
)
|
|
$
|
35.62
|
|
|
|
|
|
||
Balances at September 30, 2019
|
1,156,902
|
|
|
350,778
|
|
|
$
|
40.06
|
|
|
1.36
|
|
$
|
14.4
|
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Insurance
|
$
|
3.4
|
|
|
$
|
2.6
|
|
|
$
|
2.7
|
|
Advertising, meetings and conferences
|
5.2
|
|
|
6.2
|
|
|
4.0
|
|
|||
Office supplies and printing
|
1.9
|
|
|
1.7
|
|
|
2.1
|
|
|||
Other clearing related expenses
|
2.5
|
|
|
2.5
|
|
|
2.6
|
|
|||
Other non-income taxes
|
4.6
|
|
|
4.9
|
|
|
4.6
|
|
|||
Contingent consideration, net
|
—
|
|
|
—
|
|
|
0.1
|
|
|||
Other
|
10.8
|
|
|
8.4
|
|
|
9.8
|
|
|||
Total other expenses
|
$
|
28.4
|
|
|
$
|
26.3
|
|
|
$
|
25.9
|
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Income tax expense attributable to income from operations
|
$
|
25.9
|
|
|
$
|
46.0
|
|
|
$
|
8.8
|
|
Taxes allocated to stockholders’ equity, related to pension liabilities
|
(0.2
|
)
|
|
0.1
|
|
|
1.0
|
|
|||
Taxes allocated to additional paid-in capital, related to share-based compensation
|
—
|
|
|
—
|
|
|
0.1
|
|
|||
Total income tax expense
|
$
|
25.7
|
|
|
$
|
46.1
|
|
|
$
|
9.9
|
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Current taxes:
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
(1.9
|
)
|
|
$
|
0.8
|
|
|
$
|
0.7
|
|
U.S. State and local
|
(0.8
|
)
|
|
0.5
|
|
|
1.2
|
|
|||
International
|
24.9
|
|
|
22.4
|
|
|
16.7
|
|
|||
Total current taxes
|
22.2
|
|
|
23.7
|
|
|
18.6
|
|
|||
Deferred taxes
|
3.7
|
|
|
22.3
|
|
|
(9.8
|
)
|
|||
Income tax expense
|
$
|
25.9
|
|
|
$
|
46.0
|
|
|
$
|
8.8
|
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
U.S.
|
$
|
(2.6
|
)
|
|
$
|
9.9
|
|
|
$
|
(13.9
|
)
|
International
|
113.6
|
|
|
91.6
|
|
|
29.1
|
|
|||
Income from operations, before tax
|
$
|
111.0
|
|
|
$
|
101.5
|
|
|
$
|
15.2
|
|
|
Year Ended September 30,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Federal statutory rate effect of:
|
21.0
|
%
|
|
24.5
|
%
|
|
35.0
|
%
|
U.S. State and local income taxes
|
(1.5
|
)%
|
|
0.8
|
%
|
|
(2.6
|
)%
|
Foreign earnings and losses taxed at different rates
|
0.7
|
%
|
|
(0.8
|
)%
|
|
11.5
|
%
|
Change in foreign valuation allowance
|
1.0
|
%
|
|
(0.8
|
)%
|
|
(1.4
|
)%
|
Change in state valuation allowance
|
0.5
|
%
|
|
—
|
%
|
|
4.1
|
%
|
U.S. permanent items
|
0.1
|
%
|
|
(0.2
|
)%
|
|
3.6
|
%
|
Foreign permanent items
|
0.7
|
%
|
|
2.1
|
%
|
|
8.1
|
%
|
U.S. bargain purchase gain
|
(1.0
|
)%
|
|
—
|
%
|
|
—
|
%
|
Remeasurement of deferred tax
|
—
|
%
|
|
8.5
|
%
|
|
—
|
%
|
Repatriation Transition tax
|
—
|
%
|
|
11.0
|
%
|
|
—
|
%
|
GILTI
|
2.2
|
%
|
|
—
|
%
|
|
—
|
%
|
Other reconciling items
|
(0.4
|
)%
|
|
0.2
|
%
|
|
(0.6
|
)%
|
Effective rate
|
23.3
|
%
|
|
45.3
|
%
|
|
57.7
|
%
|
(in millions)
|
September 30, 2019
|
|
September 30, 2018
|
||||
Deferred tax assets:
|
|
|
|
|
|
||
Share-based compensation
|
$
|
3.3
|
|
|
$
|
2.8
|
|
Deferred compensation
|
3.6
|
|
|
1.4
|
|
||
Foreign net operating loss carryforwards
|
2.6
|
|
|
4.2
|
|
||
U.S. State and local net operating loss carryforwards
|
9.2
|
|
|
8.7
|
|
||
U.S. federal net operating loss carryforwards
|
1.1
|
|
|
—
|
|
||
Intangible assets
|
4.8
|
|
|
1.8
|
|
||
Bad debt reserve
|
1.3
|
|
|
1.5
|
|
||
Tax credit carryforwards
|
0.5
|
|
|
—
|
|
||
Foreign tax credit carryforwards
|
5.0
|
|
|
6.5
|
|
||
Other compensation
|
2.2
|
|
|
3.4
|
|
||
Other
|
1.1
|
|
|
0.9
|
|
||
Total gross deferred tax assets
|
34.7
|
|
|
31.2
|
|
||
Less valuation allowance
|
(8.5
|
)
|
|
(3.5
|
)
|
||
Deferred tax assets
|
26.2
|
|
|
27.7
|
|
||
Deferred income tax liabilities:
|
|
|
|
||||
Unrealized gain on securities
|
3.2
|
|
|
2.6
|
|
||
Prepaid expenses
|
2.2
|
|
|
1.8
|
|
||
Property and equipment
|
2.6
|
|
|
3.1
|
|
||
Pension liability
|
0.2
|
|
|
0.4
|
|
||
Deferred income tax liabilities
|
8.2
|
|
|
7.9
|
|
||
Deferred income taxes, net
|
$
|
18.0
|
|
|
$
|
19.8
|
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance, beginning of year
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
Gross decreases for tax positions of prior years
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|||
Balance, end of year
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
(in millions)
|
Fair Value
|
||
Cash and cash equivalents
|
$
|
1.1
|
|
Deposits with and receivables from broker-dealers, clearing organizations, and counterparties (1)
|
7.7
|
|
|
Financial instruments owned, at fair value (2)
|
7.1
|
|
|
Deferred income taxes
|
2.7
|
|
|
Property and equipment
|
0.7
|
|
|
Other assets
|
0.7
|
|
|
Total fair value of assets acquired
|
20.0
|
|
|
|
|
||
Accounts payable and other accrued liabilities
|
1.9
|
|
|
Payable to broker-dealers, clearing organizations, and counterparties
|
0.1
|
|
|
Financial instruments sold, not yet purchased, at fair value (2)
|
4.4
|
|
|
Total fair value of liabilities assumed
|
6.4
|
|
|
Fair value of net assets acquired
|
13.6
|
|
|
Purchase price
|
8.2
|
|
|
Bargain purchase gain
|
$
|
5.4
|
|
(in millions)
|
Fair Value
|
||
Cash and cash equivalents
|
$
|
2.0
|
|
Receivables from clients (1)
|
1.2
|
|
|
Receivable from affiliate
|
1.1
|
|
|
Income tax receivable
|
0.1
|
|
|
Physical commodities inventory
|
9.8
|
|
|
Deferred tax assets, net
|
0.2
|
|
|
Other assets
|
1.2
|
|
|
Total fair value of tangible assets acquired
|
15.6
|
|
|
|
|
||
Accounts payable and other accrued liabilities
|
0.2
|
|
|
Payables to clients
|
0.2
|
|
|
Total fair value of tangible liabilities assumed
|
0.4
|
|
|
Fair value of net tangible assets acquired
|
15.2
|
|
|
Purchase price
|
22.0
|
|
|
Excess purchase price over fair value of tangible net assets acquired
|
$
|
6.8
|
|
|
|
||
Excess purchase price over fair value of tangible net assets acquired allocated to identifiable intangible assets:
|
|
||
Domain names
|
$
|
2.1
|
|
Internally developed software
|
2.5
|
|
|
Total excess purchase price allocated to identifiable intangible assets
|
4.6
|
|
|
|
|
||
Remaining excess allocated to goodwill
|
$
|
2.2
|
|
(in millions)
|
Fair Value
|
||
Cash and cash equivalents
|
$
|
0.2
|
|
Deposits with and receivables from broker-dealers, clearing organizations, and counterparties
|
0.3
|
|
|
Receivables from clients, net (1)
|
0.2
|
|
|
Other assets
|
0.4
|
|
|
Total fair value of tangible assets acquired
|
1.1
|
|
|
|
|
||
Accounts payable and other accrued liabilities
|
0.5
|
|
|
Total fair value of tangible liabilities assumed
|
0.5
|
|
|
Fair value of net tangible assets acquired
|
0.6
|
|
|
Purchase price (2)
|
3.2
|
|
|
Excess purchase price over fair value of tangible net assets acquired
|
$
|
2.6
|
|
|
|
||
Excess purchase price over fair value of tangible net assets acquired allocated to identifiable intangible assets:
|
|
||
Client relationships
|
$
|
0.7
|
|
Total excess purchase price allocated to identifiable intangible assets
|
0.7
|
|
|
|
|
||
Remaining excess allocated to goodwill
|
$
|
1.9
|
|
(in millions)
|
|
Foreign Currency Translation Adjustment
|
|
Pension Benefits Adjustment
|
|
Accumulated Other Comprehensive Loss
|
||||||
Balances as of September 30, 2018
|
|
$
|
(30.5
|
)
|
|
$
|
(2.6
|
)
|
|
$
|
(33.1
|
)
|
Other comprehensive (loss) income, net of tax before reclassifications
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|
(1.6
|
)
|
|||
Amounts reclassified from AOCI, net of tax
|
|
(0.2
|
)
|
|
0.1
|
|
|
(0.1
|
)
|
|||
Other comprehensive (loss) income, net of tax
|
|
(1.0
|
)
|
|
(0.7
|
)
|
|
(1.7
|
)
|
|||
Balances as of September 30, 2019
|
|
$
|
(31.5
|
)
|
|
$
|
(3.3
|
)
|
|
$
|
(34.8
|
)
|
•
|
Commercial Hedging (includes components Financial Agricultural (“Ag”) & Energy and LME Metals)
|
•
|
Global Payments
|
•
|
Securities (includes components Equity Capital Markets, Debt Capital Markets and Asset Management)
|
•
|
Physical Commodities (includes components Precious Metals and Physical Ag & Energy)
|
•
|
Clearing and Execution Services (includes components Exchange-Traded Futures & Options, FX Prime Brokerage, Correspondent Clearing, Independent Wealth Management, and Derivative Voice Brokerage)
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Total revenues:
|
|
|
|
|
|
||||||
Commercial Hedging
|
$
|
302.4
|
|
|
$
|
286.7
|
|
|
$
|
244.6
|
|
Global Payments
|
112.8
|
|
|
99.2
|
|
|
89.2
|
|
|||
Securities
|
295.3
|
|
|
196.2
|
|
|
151.7
|
|
|||
Physical Commodities
|
31,864.7
|
|
|
26,703.8
|
|
|
28,684.4
|
|
|||
Clearing and Execution Services
|
326.1
|
|
|
332.4
|
|
|
259.8
|
|
|||
Corporate Unallocated
|
20.8
|
|
|
23.9
|
|
|
4.7
|
|
|||
Eliminations
|
(25.1
|
)
|
|
(19.5
|
)
|
|
(10.8
|
)
|
|||
Total
|
$
|
32,897.0
|
|
|
$
|
27,622.7
|
|
|
$
|
29,423.6
|
|
Operating revenues:
|
|
|
|
|
|
||||||
Commercial Hedging
|
$
|
302.4
|
|
|
$
|
286.7
|
|
|
$
|
244.6
|
|
Global Payments
|
112.8
|
|
|
99.2
|
|
|
89.2
|
|
|||
Securities
|
295.3
|
|
|
196.2
|
|
|
151.7
|
|
|||
Physical Commodities
|
73.8
|
|
|
56.9
|
|
|
44.8
|
|
|||
Clearing and Execution Services
|
326.1
|
|
|
332.4
|
|
|
259.8
|
|
|||
Corporate Unallocated
|
20.8
|
|
|
23.9
|
|
|
4.7
|
|
|||
Eliminations
|
(25.1
|
)
|
|
(19.5
|
)
|
|
(10.8
|
)
|
|||
Total
|
$
|
1,106.1
|
|
|
$
|
975.8
|
|
|
$
|
784.0
|
|
Net operating revenues (loss):
|
|
|
|
|
|
||||||
Commercial Hedging
|
$
|
236.5
|
|
|
$
|
226.4
|
|
|
$
|
194.3
|
|
Global Payments
|
107.0
|
|
|
93.5
|
|
|
80.6
|
|
|||
Securities
|
131.0
|
|
|
94.6
|
|
|
94.6
|
|
|||
Physical Commodities
|
56.3
|
|
|
44.8
|
|
|
37.3
|
|
|||
Clearing and Execution Services
|
133.2
|
|
|
122.6
|
|
|
102.2
|
|
|||
Corporate Unallocated
|
(10.8
|
)
|
|
(0.3
|
)
|
|
(16.4
|
)
|
|||
Total
|
$
|
653.2
|
|
|
$
|
581.6
|
|
|
$
|
492.6
|
|
Net contribution:
|
|
|
|
|
|
||||||
(Revenues less cost of sales of physical commodities, transaction-based clearing expenses, variable compensation, introducing broker commissions and interest expense)
|
|
|
|
|
|
||||||
Commercial Hedging
|
$
|
170.4
|
|
|
$
|
164.7
|
|
|
$
|
141.8
|
|
Global Payments
|
86.6
|
|
|
75.0
|
|
|
64.4
|
|
|||
Securities
|
81.9
|
|
|
69.1
|
|
|
75.6
|
|
|||
Physical Commodities
|
40.5
|
|
|
31.8
|
|
|
27.2
|
|
|||
Clearing and Execution Services
|
103.4
|
|
|
91.8
|
|
|
78.0
|
|
|||
Total
|
$
|
482.8
|
|
|
$
|
432.4
|
|
|
$
|
387.0
|
|
Segment income (loss):
|
|
|
|
|
|
||||||
(Net contribution less non-variable direct segment costs)
|
|
|
|
|
|
||||||
Commercial Hedging
|
$
|
100.1
|
|
|
$
|
96.4
|
|
|
$
|
72.8
|
|
Global Payments
|
66.1
|
|
|
59.8
|
|
|
50.6
|
|
|||
Securities
|
47.4
|
|
|
40.8
|
|
|
46.6
|
|
|||
Physical Commodities
|
38.0
|
|
|
16.6
|
|
|
(31.4
|
)
|
|||
Clearing and Execution Services
|
54.1
|
|
|
48.3
|
|
|
30.4
|
|
|||
Total
|
$
|
305.7
|
|
|
$
|
261.9
|
|
|
$
|
169.0
|
|
Reconciliation of segment income to income before tax:
|
|
|
|
|
|
||||||
Segment income
|
$
|
305.7
|
|
|
$
|
261.9
|
|
|
$
|
169.0
|
|
Net costs not allocated to operating segments
|
200.2
|
|
|
162.4
|
|
|
153.8
|
|
|||
Other gains
|
5.5
|
|
|
2.0
|
|
|
—
|
|
|||
Income before tax
|
$
|
111.0
|
|
|
$
|
101.5
|
|
|
$
|
15.2
|
|
(in millions)
|
As of September 30, 2019
|
|
As of September 30, 2018
|
|
As of September 30, 2017
|
||||||
Total assets:
|
|
|
|
|
|
||||||
Commercial Hedging
|
$
|
2,041.0
|
|
|
$
|
1,935.7
|
|
|
$
|
1,650.3
|
|
Global Payments
|
278.3
|
|
|
206.6
|
|
|
199.5
|
|
|||
Securities
|
5,219.1
|
|
|
3,058.2
|
|
|
2,101.7
|
|
|||
Physical Commodities
|
357.8
|
|
|
413.7
|
|
|
339.5
|
|
|||
Clearing and Execution Services
|
1,892.1
|
|
|
2,109.9
|
|
|
1,818.9
|
|
|||
Corporate unallocated
|
147.8
|
|
|
100.6
|
|
|
133.5
|
|
|||
Total
|
$
|
9,936.1
|
|
|
$
|
7,824.7
|
|
|
$
|
6,243.4
|
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Total revenues:
|
|
|
|
|
|
||||||
United States
|
$
|
1,947.6
|
|
|
$
|
1,587.6
|
|
|
$
|
1,168.0
|
|
Europe
|
280.2
|
|
|
189.6
|
|
|
166.9
|
|
|||
South America
|
56.5
|
|
|
59.5
|
|
|
53.9
|
|
|||
Middle East and Asia
|
30,606.9
|
|
|
25,781.4
|
|
|
28,030.3
|
|
|||
Other
|
5.8
|
|
|
4.6
|
|
|
4.5
|
|
|||
Total
|
$
|
32,897.0
|
|
|
$
|
27,622.7
|
|
|
$
|
29,423.6
|
|
Operating revenues:
|
|
|
|
|
|
||||||
United States
|
$
|
799.4
|
|
|
$
|
695.3
|
|
|
$
|
529.4
|
|
Europe
|
209.6
|
|
|
189.0
|
|
|
166.9
|
|
|||
South America
|
56.5
|
|
|
58.0
|
|
|
54.0
|
|
|||
Middle East and Asia
|
34.8
|
|
|
28.9
|
|
|
29.2
|
|
|||
Other
|
5.8
|
|
|
4.6
|
|
|
4.5
|
|
|||
Total
|
$
|
1,106.1
|
|
|
$
|
975.8
|
|
|
$
|
784.0
|
|
|
|
|
|
|
|
||||||
(in millions)
|
As of September 30, 2019
|
|
As of September 30, 2018
|
|
As of September 30, 2017
|
||||||
Long-lived assets, as defined:
|
|
|
|
|
|
||||||
United States
|
$
|
33.9
|
|
|
$
|
33.0
|
|
|
$
|
29.7
|
|
Europe
|
6.6
|
|
|
6.8
|
|
|
7.3
|
|
|||
South America
|
2.1
|
|
|
1.4
|
|
|
1.5
|
|
|||
Middle East and Asia
|
1.0
|
|
|
1.2
|
|
|
0.2
|
|
|||
Other
|
0.3
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
43.9
|
|
|
$
|
42.4
|
|
|
$
|
38.7
|
|
|
For the 2019 Fiscal Quarter Ended
|
||||||||||||||
(in millions, except per share amounts)
|
September 30(1)
|
|
June 30
|
|
March 31
|
|
December 31
|
||||||||
Total revenues
|
$
|
11,279.6
|
|
|
$
|
7,873.0
|
|
|
$
|
7,192.2
|
|
|
$
|
6,552.2
|
|
Cost of sales of physical commodities
|
10,992.7
|
|
|
7,589.6
|
|
|
6,921.1
|
|
|
6,287.5
|
|
||||
Operating revenues
|
286.9
|
|
|
283.4
|
|
|
271.1
|
|
|
264.7
|
|
||||
Transaction-based clearing expenses
|
45.0
|
|
|
45.7
|
|
|
42.7
|
|
|
50.1
|
|
||||
Introducing broker commissions
|
27.7
|
|
|
29.6
|
|
|
24.8
|
|
|
32.6
|
|
||||
Interest expense
|
40.8
|
|
|
42.5
|
|
|
38.4
|
|
|
33.0
|
|
||||
Net operating revenues
|
173.4
|
|
|
165.6
|
|
|
165.2
|
|
|
149.0
|
|
||||
Compensation and benefits
|
105.2
|
|
|
100.9
|
|
|
97.9
|
|
|
89.1
|
|
||||
Bad debts
|
1.0
|
|
|
0.5
|
|
|
0.7
|
|
|
0.3
|
|
||||
Bad debt on physical coal (1)
|
(10.0
|
)
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
||||
Other expenses
|
43.2
|
|
|
42.6
|
|
|
41.1
|
|
|
37.6
|
|
||||
Total compensation and other expenses
|
139.4
|
|
|
144.0
|
|
|
139.7
|
|
|
124.6
|
|
||||
Other gains(2)
|
0.1
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
||||
Income before tax
|
34.1
|
|
|
21.6
|
|
|
30.9
|
|
|
24.4
|
|
||||
Income tax expense
|
6.9
|
|
|
5.3
|
|
|
7.5
|
|
|
6.2
|
|
||||
Net income
|
$
|
27.2
|
|
|
$
|
16.3
|
|
|
$
|
23.4
|
|
|
$
|
18.2
|
|
Net basic earnings per share
|
$
|
1.42
|
|
|
$
|
0.85
|
|
|
$
|
1.23
|
|
|
$
|
0.96
|
|
Net diluted earnings per share
|
$
|
1.40
|
|
|
$
|
0.84
|
|
|
$
|
1.21
|
|
|
$
|
0.94
|
|
|
For the 2018 Fiscal Quarter Ended
|
||||||||||||||
(in millions, except per share amounts)
|
September 30,
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
||||||||
Total revenues
|
$
|
6,078.8
|
|
|
$
|
7,118.3
|
|
|
$
|
6,507.0
|
|
|
$
|
7,918.6
|
|
Cost of sales of physical commodities
|
5,835.6
|
|
|
6,858.5
|
|
|
6,246.8
|
|
|
7,706.0
|
|
||||
Operating revenues
|
243.2
|
|
|
259.8
|
|
|
260.2
|
|
|
212.6
|
|
||||
Transaction-based clearing expenses
|
43.1
|
|
|
49.0
|
|
|
50.7
|
|
|
36.9
|
|
||||
Introducing broker commissions
|
32.4
|
|
|
34.1
|
|
|
36.2
|
|
|
31.1
|
|
||||
Interest expense
|
25.3
|
|
|
22.1
|
|
|
19.0
|
|
|
14.3
|
|
||||
Net operating revenues
|
142.4
|
|
|
154.6
|
|
|
154.3
|
|
|
130.3
|
|
||||
Compensation and benefits
|
85.4
|
|
|
86.9
|
|
|
88.2
|
|
|
77.2
|
|
||||
Bad debts
|
1.2
|
|
|
1.6
|
|
|
0.2
|
|
|
0.1
|
|
||||
Bad debt on physical coal (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||
Other expenses
|
35.3
|
|
|
35.2
|
|
|
36.4
|
|
|
33.4
|
|
||||
Total compensation and other expenses
|
121.9
|
|
|
123.7
|
|
|
124.8
|
|
|
111.7
|
|
||||
Other gains(2)
|
—
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
||||
Income before tax
|
20.5
|
|
|
32.9
|
|
|
29.5
|
|
|
18.6
|
|
||||
Income tax expense
|
4.8
|
|
|
8.9
|
|
|
6.8
|
|
|
25.5
|
|
||||
Net income (loss)
|
$
|
15.7
|
|
|
$
|
24.0
|
|
|
$
|
22.7
|
|
|
$
|
(6.9
|
)
|
Net basic (loss) earnings per share
|
$
|
0.83
|
|
|
$
|
1.27
|
|
|
$
|
1.20
|
|
|
$
|
(0.37
|
)
|
Net diluted (loss) earnings per share
|
$
|
0.81
|
|
|
$
|
1.25
|
|
|
$
|
1.18
|
|
|
$
|
(0.37
|
)
|
(in millions)
|
September 30,
2019 |
|
September 30,
2018 |
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2.0
|
|
|
$
|
1.8
|
|
Receivable from subsidiaries, net
|
17.6
|
|
|
23.3
|
|
||
Receivable from clients
|
0.5
|
|
|
—
|
|
||
Notes receivable, net
|
2.8
|
|
|
1.8
|
|
||
Income taxes receivable
|
15.7
|
|
|
14.9
|
|
||
Investment in subsidiaries(1)
|
399.4
|
|
|
318.0
|
|
||
Financial instruments owned, at fair value
|
0.0
|
|
4.4
|
|
|||
Deferred income taxes, net
|
8.2
|
|
8.8
|
|
|||
Property and equipment, net
|
26.9
|
|
25.9
|
|
|||
Other assets
|
13.0
|
|
|
7.6
|
|
||
Total assets
|
$
|
486.1
|
|
|
$
|
406.5
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Accounts payable and other accrued liabilities
|
$
|
29.4
|
|
|
$
|
23.0
|
|
Payable to clients
|
0.3
|
|
|
1.7
|
|
||
Payable to lenders under loans
|
70.4
|
|
|
209.4
|
|
||
Senior term loan
|
167.6
|
|
|
—
|
|
||
Financial instruments sold, not yet purchased, at fair value
|
84.5
|
|
|
59.3
|
|
||
Total liabilities
|
352.2
|
|
|
293.4
|
|
||
|
|
|
|
||||
Equity:
|
|
|
|
||||
INTL FCStone Inc. (Parent Company Only) stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.01 par value. Authorized 1,000,000 shares; no shares issued or outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value. Authorized 30,000,000 shares; 21,297,317 issued and 19,075,360 outstanding at September 30, 2019 and 21,030,497 issued and 18,908,540 outstanding at September 30, 2018
|
0.2
|
|
|
0.2
|
|
||
Common stock in treasury, at cost - 2,221,957 shares at September 30, 2019 and 2,121,957 shares at September 30, 2018
|
(50.1
|
)
|
|
(46.3
|
)
|
||
Additional paid-in capital
|
276.8
|
|
|
267.5
|
|
||
Retained earnings(1)
|
(93.0
|
)
|
|
(108.3
|
)
|
||
Total INTL FCStone Inc. (Parent Company Only) stockholders’ equity
|
133.9
|
|
|
113.1
|
|
||
Total liabilities and equity
|
$
|
486.1
|
|
|
$
|
406.5
|
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Management fees from affiliates
|
$
|
43.2
|
|
|
$
|
40.4
|
|
|
$
|
39.1
|
|
Trading losses, net
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|||
Consulting fees
|
0.1
|
|
|
—
|
|
|
—
|
|
|||
Interest income
|
1.5
|
|
|
2.3
|
|
|
1.2
|
|
|||
Dividend income from subsidiaries(2)
|
85.7
|
|
|
41.9
|
|
|
52.7
|
|
|||
Total revenues
|
130.5
|
|
|
84.6
|
|
|
92.0
|
|
|||
Interest expense
|
19.7
|
|
|
15.7
|
|
|
14.4
|
|
|||
Net revenues
|
110.8
|
|
|
68.9
|
|
|
77.6
|
|
|||
Non-interest expenses:
|
|
|
|
|
|
||||||
Compensation and benefits
|
79.7
|
|
|
73.0
|
|
|
60.3
|
|
|||
Clearing and related expenses
|
0.9
|
|
|
1.1
|
|
|
1.2
|
|
|||
Trade systems and market information(3)
|
6.4
|
|
|
5.8
|
|
|
6.4
|
|
|||
Occupancy and equipment rental
|
3.4
|
|
|
2.6
|
|
|
2.5
|
|
|||
Professional fees
|
7.3
|
|
|
6.7
|
|
|
3.7
|
|
|||
Travel and business development
|
2.9
|
|
|
2.6
|
|
|
2.7
|
|
|||
Non-trading technology and support(3)
|
12.5
|
|
|
9.1
|
|
|
7.4
|
|
|||
Depreciation and amortization
|
5.2
|
|
|
4.8
|
|
|
3.3
|
|
|||
Communications(3)
|
0.8
|
|
|
0.9
|
|
|
0.9
|
|
|||
Management services fees to affiliates
|
0.5
|
|
|
—
|
|
|
—
|
|
|||
Other(3)
|
5.8
|
|
|
6.9
|
|
|
5.6
|
|
|||
Total non-interest expenses
|
125.4
|
|
|
113.5
|
|
|
94.0
|
|
|||
Other gains
|
5.3
|
|
|
—
|
|
|
—
|
|
|||
Loss from operations, before tax
|
(9.3
|
)
|
|
(44.6
|
)
|
|
(16.4
|
)
|
|||
Income tax benefit
|
24.6
|
|
|
7.4
|
|
|
26.8
|
|
|||
Net (loss) income
|
$
|
15.3
|
|
|
$
|
(37.2
|
)
|
|
$
|
10.4
|
|
|
Year Ended September 30,
|
||||||||||
(in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
15.3
|
|
|
$
|
(37.2
|
)
|
|
$
|
10.4
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
5.2
|
|
|
4.8
|
|
|
3.3
|
|
|||
Deferred income taxes
|
0.6
|
|
|
18.0
|
|
|
(10.7
|
)
|
|||
Amortization and extinguishment of debt issuance costs
|
1.2
|
|
|
0.7
|
|
|
1.7
|
|
|||
Amortization of share-based compensation expense
|
7.1
|
|
|
6.1
|
|
|
5.5
|
|
|||
Gain on acquisition
|
(5.4
|
)
|
|
—
|
|
|
—
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Deposits with and receivables from broker-dealers, clearing organizations, and counterparties
|
—
|
|
|
—
|
|
|
2.9
|
|
|||
Receivables from subsidiaries, net
|
—
|
|
|
(0.8
|
)
|
|
(0.3
|
)
|
|||
Due to/from subsidiaries
|
8.3
|
|
|
(68.6
|
)
|
|
27.0
|
|
|||
Receivables from clients, net
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|||
Notes receivable, net
|
(1.0
|
)
|
|
2.9
|
|
|
2.1
|
|
|||
Income taxes receivable
|
(0.8
|
)
|
|
(6.6
|
)
|
|
5.4
|
|
|||
Financial instruments owned, at fair value
|
4.4
|
|
|
(4.4
|
)
|
|
1.3
|
|
|||
Other assets
|
(4.4
|
)
|
|
(0.7
|
)
|
|
7.8
|
|
|||
Accounts payable and other accrued liabilities
|
4.6
|
|
|
8.6
|
|
|
(7.8
|
)
|
|||
Payable to clients
|
(1.4
|
)
|
|
(0.3
|
)
|
|
(2.5
|
)
|
|||
Financial instruments sold, not yet purchased, at fair value
|
25.2
|
|
|
34.0
|
|
|
(10.6
|
)
|
|||
Net cash provided by (used in) operating activities
|
58.4
|
|
|
(43.5
|
)
|
|
35.5
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Capital contribution in affiliates
|
(75.8
|
)
|
|
(4.5
|
)
|
|
—
|
|
|||
Purchase of property and equipment
|
(6.2
|
)
|
|
(5.9
|
)
|
|
(6.1
|
)
|
|||
Net cash used in investing activities
|
(82.0
|
)
|
|
(10.4
|
)
|
|
(6.1
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Net change in lenders under loans
|
(138.2
|
)
|
|
58.2
|
|
|
13.5
|
|
|||
Payments of notes payable
|
(0.8
|
)
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|||
Repayment of senior unsecured notes
|
—
|
|
|
—
|
|
|
(45.5
|
)
|
|||
Proceeds from issuance of senior secured term loan
|
175.0
|
|
|
—
|
|
|
—
|
|
|||
Repayments of senior secured term loan
|
(6.6
|
)
|
|
—
|
|
|
—
|
|
|||
Deferred payments on acquisitions
|
—
|
|
|
(5.5
|
)
|
|
—
|
|
|||
Share repurchase
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|||
Debt issuance costs
|
(3.0
|
)
|
|
—
|
|
|
—
|
|
|||
Exercise of stock options
|
1.2
|
|
|
2.6
|
|
|
3.4
|
|
|||
Withholding taxes on stock option exercises
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|||
Income tax benefit on stock options and awards
|
—
|
|
|
—
|
|
|
0.7
|
|
|||
Net cash provided by (used in) financing activities
|
23.8
|
|
|
53.7
|
|
|
(28.7
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
0.2
|
|
|
(0.2
|
)
|
|
0.7
|
|
|||
Cash and cash equivalents at beginning of period
|
1.8
|
|
|
2.0
|
|
|
1.3
|
|
|||
Cash and cash equivalents at end of period
|
$
|
2.0
|
|
|
$
|
1.8
|
|
|
$
|
2.0
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
||||||
Cash paid for interest
|
$
|
18.9
|
|
|
$
|
15.0
|
|
|
$
|
8.2
|
|
Income taxes (received) paid, net of cash refunds
|
$
|
(23.9
|
)
|
|
$
|
(18.4
|
)
|
|
$
|
(22.3
|
)
|
Supplemental disclosure of non-cash investing and financing activities:
|
|
|
|
|
|
||||||
Additional consideration payable related to acquisitions
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
(0.2
|
)
|
(a)
|
Evaluation of Disclosure Controls and Procedures
|
(b)
|
Management’s Report on Internal Control Over Financial Reporting
|
(c)
|
Changes in Internal Control Over Financial Reporting
|
Plan Category
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
|
Weighted average exercise price of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans
|
||||
Equity compensation plans approved by stockholders
|
1,684,378
|
|
|
$
|
37.59
|
|
|
692,652
|
|
Equity compensation plans not approved by stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
1,684,378
|
|
|
$
|
37.59
|
|
|
692,652
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
4.1
|
|
|
|
|
|
4.2
|
|
|
|
|
|
4.3
|
|
|
|
|
|
4.4
|
|
|
|
|
|
4.5
|
|
|
|
|
|
10.1
|
|
|
|
|
|
10.2
|
|
|
|
|
|
10.3
|
|
|
|
|
|
10.4
|
|
|
|
|
|
10.5
|
|
|
|
|
|
10.6
|
|
|
|
|
|
10.7
|
|
|
|
|
|
10.8
|
|
|
|
|
|
10.9
|
|
|
|
|
|
10.10
|
|
|
|
|
|
10.11
|
|
|
|
|
|
10.12
|
|
|
|
|
|
10.13
|
|
|
|
|
|
10.14
|
|
|
|
|
|
INTL FCStone Inc.
|
|
|||
|
|
|
|
|
|
|
|
/s/ SEAN M. O’CONNOR
|
|
|
|
|
Sean M. O’Connor
|
|
|
|
|
Chief Executive Officer
|
|
|
|
Dated:
|
December 11, 2019
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ JOHN RADZIWILL
|
|
Director and Chairman of the Board
|
|
December 11, 2019
|
John Radziwill
|
|
|
|
|
|
|
|
|
|
/s/ SEAN M. O’CONNOR
|
|
Director, President and Chief Executive Officer
|
|
December 11, 2019
|
Sean M. O’Connor
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
/s/ SCOTT J. BRANCH
|
|
Director
|
|
December 11, 2019
|
Scott J. Branch
|
|
|
|
|
|
|
|
|
|
/s/ DIANE L. COOPER
|
|
Director
|
|
December 11, 2019
|
Diane L. Cooper
|
|
|
|
|
|
|
|
|
|
/s/ JOHN M. FOWLER
|
|
Director
|
|
December 11, 2019
|
John M. Fowler
|
|
|
|
|
|
|
|
|
|
/s/ DARYL HENZE
|
|
Director
|
|
December 11, 2019
|
Daryl Henze
|
|
|
|
|
|
|
|
|
|
/s/ STEVEN KASS
|
|
Director
|
|
December 11, 2019
|
Steven Kass
|
|
|
|
|
|
|
|
|
|
/s/ BRUCE KREHBIEL
|
|
Director
|
|
December 11, 2019
|
Bruce Krehbiel
|
|
|
|
|
|
|
|
|
|
/s/ ERIC PARTHEMORE
|
|
Director
|
|
December 11, 2019
|
Eric Parthemore
|
|
|
|
|
|
|
|
|
|
/s/ WILLIAM J. DUNAWAY
|
|
Chief Financial Officer
|
|
December 11, 2019
|
William J. Dunaway
|
|
(Principal Financial and Accounting Officer)
|
|
|
•
|
Board may adopt, amend or repeal bylaws without stockholder approval;
|
•
|
the Bylaws specify advance notice procedures that stockholders must follow in order to bring business at an annual or special meeting of stockholders, and proxy access procedures for director nominations at annual meetings;
|
•
|
the Bylaws provide that the Secretary of the Company shall call a special meeting of stockholders upon the written request of a stockholder, or group of stockholders, owning not less than 20% of the outstanding capital stock of the Company, provided that the stockholder or stockholders satisfy the procedural requirements specified in the Bylaws;
|
•
|
the Bylaws otherwise limit the ability to call special meetings of stockholders to the President or a majority of the Board;
|
•
|
vacancies on the Board can be filled by a majority vote of the remaining members of the Board, even where less than a quorum, or by decision of a sole remaining director, or, upon application by a stockholder or stockholders holding at least 10% of the shares currently outstanding to the Court of Chancery, by a vote of the stockholders required for the election of directors generally, if the remaining members of the Board constitute less than a majority of the Board;
|
•
|
the Board is authorized to issue Preferred Stock without stockholder approval; and
|
•
|
the Company is incorporated in Delaware and is thus subject to the provisions of the General Corporation Law of the State of Delaware (the “DGCL”), including Section 203 of the DGCL regarding business combinations with an interested stockholder.
|
NEW LENDER:
|
BANK OF HOPE
|
BORROWER:
|
INTL FCSTONE INC.,
|
GUARANTORS:
|
INTL FCSTONE ASSETS, INC.,
|
NEW LENDER:
|
INVESTORS BANK
|
BORROWER:
|
INTL FCSTONE INC.,
|
GUARANTORS:
|
INTL FCSTONE ASSETS, INC.,
|
Section 1.
|
Amendment.
|
Section 2.
|
Conditions Precedent.
|
Section 3.
|
Representations.
|
Section 4.
|
Miscellaneous.
|
Section 1.
|
Amendments.
|
Section 2.
|
Conditions.
|
Section 3.
|
Representations.
|
Section 1.
|
Amendments.
|
Section 2.
|
Conditions.
|
Section 3.
|
Representations.
|
NEW LENDER:
|
Bank of China Limited London Branch,
|
BORROWER:
|
INTL FCSTONE LTD.,
|
Name
|
|
Place of Incorporation
|
Akshay Financeware, Inc.
|
|
New Jersey, U.S.
|
CoinInvest GmbH
|
|
Germany
|
European Precious Metal Trading GmbH
|
|
Germany
|
FCC Futures, Inc.
|
|
Iowa, U.S.
|
FCStone Commodity Services (Europe) Ltd
|
|
Ireland
|
FCStone do Brasil Ltda.
|
|
Brazil
|
FCStone Group, Inc.
|
|
Delaware, U.S.
|
FCStone Merchant Services, LLC
|
|
Delaware, U.S.
|
FCStone Paraguay S.R.L.
|
|
Paraguay
|
Fillmore Advisors Canada, ULC
|
|
British Columbia, Canada
|
Gainvest Asset Management Ltd.
|
|
British Virgin Islands
|
INTL Asia Pte. Ltd.
|
|
Singapore
|
INTL Capital S.A.
|
|
Argentina
|
INTL CIBSA S.A.
|
|
Argentina
|
INTL FCStone Assets, Inc.
|
|
Florida, U.S.
|
INTL FCStone Banco de Cambio S.A.
|
|
Brazil
|
INTL FCStone (BVI) Limited
|
|
British Virgin Islands
|
INTL FCStone Commodities DMCC
|
|
Dubai, United Arab Emirates
|
INTL FCStone Credit Trading Inc.
|
|
Delaware, U.S.
|
INTL FCStone de Mexico, S. de R.L. de C.V.
|
|
Mexico
|
INTL FCStone DTVM Ltda.
|
|
Brazil
|
INTL FCStone Europe S.A.
|
|
Luxembourg
|
INTL FCStone Financial Inc.
|
|
Florida, U.S.
|
INTL FCStone Financial (Canada) Inc.
|
|
British Columbia, Canada
|
INTL FCStone (HK) Ltd.
|
|
Hong Kong
|
INTL FCStone Ltd
|
|
United Kingdom
|
INTL FCStone Markets, LLC
|
|
Iowa, U.S.
|
INTL FCStone (Netherlands) B.V.
|
|
The Netherlands
|
INTL FCStone Nigeria Ltd
|
|
Nigeria
|
INTL FCStone Payments Ltd
|
|
United Kingdom
|
INTL FCStone Pte. Ltd.
|
|
Singapore
|
INTL FCStone Pty Ltd
|
|
Australia
|
INTL FCStone S.A.
|
|
Argentina
|
INTL FCStone (Shanghai) Trading Co., Ltd
|
|
China
|
INTL FCStone Technology Services Private Limited
|
|
India
|
INTL Fillmore Advisors LLC
|
|
Delaware, U.S.
|
INTL Gainvest S.A.
|
|
Argentina
|
INTL Netherlands B.V.
|
|
The Netherlands
|
INTL Pagos S.A.U.
|
|
Argentina
|
INTL Participacoes Ltda.
|
|
Brazil
|
INTL Technology Services LLC
|
|
Delaware, U.S.
|
SA Stone Investment Advisors Inc.
|
|
Delaware, U.S.
|
SA Stone Wealth Management Inc.
|
|
Delaware, U.S.
|
Westown Commodities, LLC
|
|
Iowa, U.S.
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1.
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I have reviewed this Annual Report on Form 10-K of INTL FCStone Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d - 15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date:
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December 11, 2019
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/s/ SEAN M. O’CONNOR
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Sean M. O’Connor
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Chief Executive Officer
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1.
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I have reviewed this Annual Report on Form 10-K of INTL FCStone Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d - 15(f)) for the registrant and have:
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date:
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December 11, 2019
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/s/ WILLIAM J. DUNAWAY
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William J. Dunaway
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Chief Financial Officer
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ SEAN M. O’CONNOR
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Sean M. O’Connor
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Chief Executive Officer
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ WILLIAM J. DUNAWAY
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William J. Dunaway
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Chief Financial Officer
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