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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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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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INTL FCStone Inc.
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(Former name if changed since last report)
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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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SNEX
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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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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page
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Part I. FINANCIAL INFORMATION
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Part II. OTHER INFORMATION
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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(in millions, except par value and share amounts)
|
June 30,
2020 |
|
September 30,
2019 |
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
465.2
|
|
|
$
|
471.3
|
|
Restricted cash held in escrow
|
350.0
|
|
|
—
|
|
||
Cash, securities and other assets segregated under federal and other regulations (including $9.8 and $306.0 at fair value at June 30, 2020 and September 30, 2019, respectively)
|
1,145.2
|
|
|
1,049.9
|
|
||
Collateralized transactions:
|
|
|
|
||||
Securities purchased under agreements to resell
|
1,757.3
|
|
|
1,424.5
|
|
||
Securities borrowed
|
1,467.4
|
|
|
1,423.2
|
|
||
Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net (including $1261.6 and $626.9 at fair value at June 30, 2020 and September 30, 2019, respectively)
|
3,396.7
|
|
|
2,540.5
|
|
||
Receivable from clients, net
|
408.8
|
|
|
422.3
|
|
||
Notes receivable, net
|
4.7
|
|
|
2.9
|
|
||
Income taxes receivable
|
2.8
|
|
|
5.2
|
|
||
Financial instruments owned, at fair value (includes securities pledged as collateral that can be sold or repledged of $606.4 and $478.8 at June 30, 2020 and September 30, 2019, respectively)
|
2,831.9
|
|
|
2,175.2
|
|
||
Physical commodities inventory, net (including $173.6 and $151.9 at fair value at June 30, 2020 and September 30, 2019, respectively)
|
270.2
|
|
|
229.3
|
|
||
Deferred income taxes, net
|
13.4
|
|
|
18.0
|
|
||
Property and equipment, net
|
51.6
|
|
|
43.9
|
|
||
Operating right of use assets
|
75.0
|
|
|
—
|
|
||
Goodwill and intangible assets, net
|
76.3
|
|
|
67.9
|
|
||
Other assets
|
73.0
|
|
|
62.0
|
|
||
Total assets
|
$
|
12,389.5
|
|
|
$
|
9,936.1
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
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|
||||
Liabilities:
|
|
|
|
||||
Accounts payable and other accrued liabilities (including $1.6 and $1.8 at fair value at June 30, 2020 and September 30, 2019, respectively)
|
$
|
176.4
|
|
|
$
|
157.5
|
|
Operating lease liabilities
|
87.4
|
|
|
—
|
|
||
Payables to:
|
|
|
|
||||
Clients
|
4,443.7
|
|
|
3,589.5
|
|
||
Broker-dealers, clearing organizations and counterparties (including $8.8 and $5.6 at fair value at June 30, 2020 and September 30, 2019, respectively)
|
430.0
|
|
|
266.2
|
|
||
Lenders under loans
|
313.8
|
|
|
202.3
|
|
||
Senior secured borrowings, net
|
518.9
|
|
|
167.6
|
|
||
Income taxes payable
|
12.1
|
|
|
10.4
|
|
||
Collateralized transactions:
|
|
|
|
||||
Securities sold under agreements to repurchase
|
3,530.4
|
|
|
2,773.7
|
|
||
Securities loaned
|
1,459.7
|
|
|
1,459.9
|
|
||
Financial instruments sold, not yet purchased, at fair value
|
728.3
|
|
|
714.8
|
|
||
Total liabilities
|
11,700.7
|
|
|
9,341.9
|
|
||
Commitments and contingencies (Note 13)
|
|
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|
||||
Stockholders' equity:
|
|
|
|
||||
Preferred stock, $0.01 par value. Authorized 1,000,000 shares; no shares issued or outstanding
|
—
|
|
|
—
|
|
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Common stock, $0.01 par value. Authorized 30,000,000 shares; 21,735,636 issued and 19,313,679 outstanding at June 30, 2020 and 21,297,317 issued and 19,075,360 outstanding at September 30, 2019
|
0.2
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0.2
|
|
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Common stock in treasury, at cost - 2,421,957 shares at June 30, 2020 and 2,221,957 shares at September 30, 2019
|
(57.6
|
)
|
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(50.1
|
)
|
||
Additional paid-in-capital
|
289.4
|
|
|
276.8
|
|
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Retained earnings
|
495.0
|
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|
402.1
|
|
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Accumulated other comprehensive loss, net
|
(38.2
|
)
|
|
(34.8
|
)
|
||
Total equity
|
688.8
|
|
|
594.2
|
|
||
Total liabilities and stockholders' equity
|
$
|
12,389.5
|
|
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$
|
9,936.1
|
|
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Three Months Ended June 30,
|
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Nine Months Ended June 30,
|
||||||||||||
(in millions, except share and per share amounts)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Sales of physical commodities
|
$
|
7,944.5
|
|
|
$
|
7,599.3
|
|
|
$
|
38,939.4
|
|
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$
|
20,824.6
|
|
Principal gains, net
|
161.0
|
|
|
102.3
|
|
|
442.0
|
|
|
305.4
|
|
||||
Commission and clearing fees
|
96.1
|
|
|
97.5
|
|
|
299.9
|
|
|
282.1
|
|
||||
Consulting, management, and account fees
|
19.4
|
|
|
20.7
|
|
|
63.3
|
|
|
58.9
|
|
||||
Interest income
|
22.4
|
|
|
53.2
|
|
|
110.1
|
|
|
146.4
|
|
||||
Total revenues
|
8,243.4
|
|
|
7,873.0
|
|
|
39,854.7
|
|
|
21,617.4
|
|
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Cost of sales of physical commodities
|
7,920.8
|
|
|
7,589.6
|
|
|
38,888.5
|
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|
20,798.2
|
|
||||
Operating revenues
|
322.6
|
|
|
283.4
|
|
|
966.2
|
|
|
819.2
|
|
||||
Transaction-based clearing expenses
|
55.3
|
|
|
45.7
|
|
|
165.4
|
|
|
138.5
|
|
||||
Introducing broker commissions
|
24.0
|
|
|
29.6
|
|
|
79.8
|
|
|
87.0
|
|
||||
Interest expense
|
15.4
|
|
|
42.5
|
|
|
79.2
|
|
|
113.9
|
|
||||
Net operating revenues
|
227.9
|
|
|
165.6
|
|
|
641.8
|
|
|
479.8
|
|
||||
Compensation and other expenses:
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
132.5
|
|
|
100.9
|
|
|
373.2
|
|
|
287.9
|
|
||||
Trading systems and market information
|
11.8
|
|
|
9.8
|
|
|
33.4
|
|
|
28.5
|
|
||||
Occupancy and equipment rental
|
5.4
|
|
|
5.0
|
|
|
15.3
|
|
|
14.4
|
|
||||
Professional fees
|
6.1
|
|
|
5.8
|
|
|
16.8
|
|
|
16.1
|
|
||||
Travel and business development
|
0.7
|
|
|
4.0
|
|
|
8.4
|
|
|
11.8
|
|
||||
Non-trading technology and support
|
6.9
|
|
|
5.8
|
|
|
18.8
|
|
|
15.0
|
|
||||
Depreciation and amortization
|
4.4
|
|
|
3.5
|
|
|
12.5
|
|
|
9.6
|
|
||||
Communications
|
1.7
|
|
|
1.6
|
|
|
4.8
|
|
|
4.9
|
|
||||
Bad debts
|
1.8
|
|
|
0.5
|
|
|
6.2
|
|
|
1.5
|
|
||||
Recovery of bad debt on physical coal
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
||||
Other
|
7.6
|
|
|
7.1
|
|
|
25.7
|
|
|
21.0
|
|
||||
Total compensation and other expenses
|
178.9
|
|
|
144.0
|
|
|
515.1
|
|
|
408.3
|
|
||||
Other gain
|
—
|
|
|
—
|
|
|
0.1
|
|
|
5.4
|
|
||||
Income before tax
|
49.0
|
|
|
21.6
|
|
|
126.8
|
|
|
76.9
|
|
||||
Income tax expense
|
12.4
|
|
|
5.3
|
|
|
34.6
|
|
|
19.0
|
|
||||
Net income
|
$
|
36.6
|
|
|
$
|
16.3
|
|
|
$
|
92.2
|
|
|
$
|
57.9
|
|
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.90
|
|
|
$
|
0.85
|
|
|
$
|
4.78
|
|
|
$
|
3.04
|
|
Diluted
|
$
|
1.87
|
|
|
$
|
0.84
|
|
|
$
|
4.71
|
|
|
$
|
2.99
|
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
18,807,104
|
|
|
18,781,401
|
|
|
18,809,823
|
|
|
18,731,203
|
|
||||
Diluted
|
19,103,166
|
|
|
19,011,526
|
|
|
19,122,681
|
|
|
19,003,720
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
(in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net income
|
$
|
36.6
|
|
|
$
|
16.3
|
|
|
$
|
92.2
|
|
|
$
|
57.9
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
—
|
|
|
0.3
|
|
|
(2.7
|
)
|
|
0.6
|
|
||||
Other comprehensive income (loss)
|
—
|
|
|
0.3
|
|
|
(2.7
|
)
|
|
0.6
|
|
||||
Comprehensive income
|
$
|
36.6
|
|
|
$
|
16.6
|
|
|
$
|
89.5
|
|
|
$
|
58.5
|
|
|
Nine Months Ended June 30,
|
||||||
(in millions)
|
2020
|
|
2019
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
92.2
|
|
|
$
|
57.9
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
12.5
|
|
|
9.6
|
|
||
Bad debts
|
6.2
|
|
|
1.5
|
|
||
Recovery of bad debt on physical coal
|
—
|
|
|
(2.4
|
)
|
||
Deferred income taxes
|
(0.7
|
)
|
|
0.3
|
|
||
Amortization of debt issuance costs
|
1.3
|
|
|
1.2
|
|
||
Amortization of share-based compensation
|
7.4
|
|
|
5.9
|
|
||
Bargain purchase gain on acquisition
|
—
|
|
|
(5.4
|
)
|
||
Changes in operating assets and liabilities, net:
|
|
|
|
||||
Securities and other assets segregated under federal and other regulations
|
296.2
|
|
|
584.4
|
|
||
Securities purchased under agreements to resell
|
(332.8
|
)
|
|
(662.2
|
)
|
||
Securities borrowed
|
(44.2
|
)
|
|
(948.6
|
)
|
||
Deposits with and receivables from broker-dealers, clearing organizations, and counterparties, net
|
55.9
|
|
|
(238.7
|
)
|
||
Receivables from clients, net
|
8.3
|
|
|
5.9
|
|
||
Notes receivable, net
|
(1.8
|
)
|
|
(0.6
|
)
|
||
Income taxes receivable
|
7.7
|
|
|
(0.6
|
)
|
||
Financial instruments owned, at fair value
|
(656.7
|
)
|
|
(368.0
|
)
|
||
Physical commodities inventory, net
|
(40.9
|
)
|
|
(115.5
|
)
|
||
Operating right of use assets
|
6.0
|
|
|
—
|
|
||
Other assets
|
(7.0
|
)
|
|
(7.8
|
)
|
||
Accounts payable and other accrued liabilities
|
20.5
|
|
|
(4.0
|
)
|
||
Operating lease liabilities
|
(6.7
|
)
|
|
—
|
|
||
Payables to clients
|
848.4
|
|
|
(7.3
|
)
|
||
Payables to broker-dealers, clearing organizations and counterparties
|
163.8
|
|
|
100.9
|
|
||
Income taxes payable
|
1.6
|
|
|
1.8
|
|
||
Securities sold under agreements to repurchase
|
756.7
|
|
|
964.0
|
|
||
Securities loaned
|
(0.2
|
)
|
|
963.0
|
|
||
Financial instruments sold, not yet purchased, at fair value
|
13.5
|
|
|
(9.7
|
)
|
||
Net cash provided by operating activities
|
1,207.2
|
|
|
325.6
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Cash paid for acquisitions, net
|
(9.8
|
)
|
|
(28.0
|
)
|
||
Purchase of property and equipment
|
(5.5
|
)
|
|
(10.3
|
)
|
||
Net cash used in investing activities
|
(15.3
|
)
|
|
(38.3
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Net change in payables to lenders under loans with maturities 90 days or less
|
150.4
|
|
|
(16.9
|
)
|
||
Proceeds from payables to lenders under loans with maturities greater than 90 days
|
521.5
|
|
|
—
|
|
||
Repayments of payables to lenders under loans with maturities greater than 90 days
|
(560.0
|
)
|
|
—
|
|
||
Proceeds from issuance of senior secured term loan
|
21.5
|
|
|
175.0
|
|
||
Repayments of senior secured term loan
|
(7.4
|
)
|
|
(4.4
|
)
|
||
Proceeds from issuance of senior secured notes
|
344.8
|
|
|
—
|
|
||
Repayments of note payable
|
(0.4
|
)
|
|
(0.6
|
)
|
||
Deferred payments on acquisitions
|
(0.6
|
)
|
|
—
|
|
||
Repurchase of common stock
|
(7.5
|
)
|
|
—
|
|
||
Debt issuance costs
|
(9.2
|
)
|
|
(3.3
|
)
|
||
Exercise of stock options
|
5.2
|
|
|
0.8
|
|
||
Net cash provided by financing activities
|
458.3
|
|
|
150.6
|
|
||
Effect of exchange rates on cash, segregated cash, cash equivalents, and segregated cash equivalents
|
(2.7
|
)
|
|
0.6
|
|
||
Net increase in cash, segregated cash, cash equivalents, and segregated cash equivalents
|
1,647.5
|
|
|
438.5
|
|
||
Cash, segregated cash, cash equivalents, and segregated cash equivalents at beginning of period
|
2,451.3
|
|
|
2,190.1
|
|
||
Cash, segregated cash, cash equivalents, and segregated cash equivalents at end of period
|
$
|
4,098.8
|
|
|
$
|
2,628.6
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
||||
Cash paid for interest
|
$
|
78.0
|
|
|
$
|
110.1
|
|
Income taxes paid, net of cash refunds
|
$
|
25.7
|
|
|
$
|
17.5
|
|
Supplemental disclosure of non-cash investing and financing activities:
|
|
|
|
||||
Identified intangible assets and goodwill on acquisitions
|
$
|
11.5
|
|
|
$
|
2.7
|
|
Acquisition of business:
|
|
|
|
||||
Assets acquired
|
$
|
357.8
|
|
|
$
|
40.9
|
|
Liabilities assumed
|
(359.5
|
)
|
|
(7.7
|
)
|
||
Total net (liabilities) assets assumed
|
$
|
(1.7
|
)
|
|
$
|
33.2
|
|
|
June 30,
|
||||||
(in millions)
|
2020
|
|
2019
|
||||
Cash and cash equivalents
|
$
|
465.2
|
|
|
$
|
345.0
|
|
Restricted cash held in escrow
|
350.0
|
|
|
—
|
|
||
Cash segregated under federal and other regulations(1)
|
1,135.4
|
|
|
721.0
|
|
||
Securities segregated under federal and other regulations(1)
|
—
|
|
|
299.6
|
|
||
Cash segregated and deposited with or pledged to exchange-clearing organizations and other futures commission merchants (“FCMs”)(2)
|
1,218.7
|
|
|
1,223.8
|
|
||
Securities segregated and pledged to exchange-clearing organizations(2)
|
929.5
|
|
|
39.2
|
|
||
Total cash, segregated cash, cash equivalents, and segregated cash equivalents shown in the condensed consolidated statements of cash flows
|
$
|
4,098.8
|
|
|
$
|
2,628.6
|
|
|
Three months ended June 30, 2019
|
||||||||||||||||||||||
(in millions)
|
Common Stock
|
|
Treasury Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss, net
|
|
Total
|
||||||||||||
Balances as of March 31, 2019
|
$
|
0.2
|
|
|
$
|
(46.3
|
)
|
|
$
|
272.1
|
|
|
$
|
358.6
|
|
|
$
|
(32.8
|
)
|
|
$
|
551.8
|
|
Net income
|
|
|
|
|
|
|
16.3
|
|
|
|
|
16.3
|
|
||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
0.3
|
|
|
0.3
|
|
||||||||||
Share-based compensation
|
|
|
|
|
2.1
|
|
|
|
|
|
|
2.1
|
|
||||||||||
Balances as of June 30, 2019
|
$
|
0.2
|
|
|
$
|
(46.3
|
)
|
|
$
|
274.2
|
|
|
$
|
374.9
|
|
|
$
|
(32.5
|
)
|
|
$
|
570.5
|
|
|
Three months ended June 30, 2020
|
||||||||||||||||||||||
(in millions)
|
Common Stock
|
|
Treasury Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss, net
|
|
Total
|
||||||||||||
Balances as of March 31, 2020
|
$
|
0.2
|
|
|
$
|
(57.6
|
)
|
|
$
|
285.8
|
|
|
$
|
458.4
|
|
|
$
|
(38.2
|
)
|
|
$
|
648.6
|
|
Net income
|
|
|
|
|
|
|
36.6
|
|
|
|
|
36.6
|
|
||||||||||
Exercise of stock options
|
|
|
|
|
1.2
|
|
|
|
|
|
|
1.2
|
|
||||||||||
Share-based compensation
|
|
|
|
|
2.4
|
|
|
|
|
|
|
2.4
|
|
||||||||||
Balances as of June 30, 2020
|
$
|
0.2
|
|
|
$
|
(57.6
|
)
|
|
$
|
289.4
|
|
|
$
|
495.0
|
|
|
$
|
(38.2
|
)
|
|
$
|
688.8
|
|
|
Nine Months Ended June 30, 2019
|
||||||||||||||||||||||
(in millions)
|
Common Stock
|
|
Treasury Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss, net
|
|
Total
|
||||||||||||
Balances as of September 30, 2018
|
$
|
0.2
|
|
|
$
|
(46.3
|
)
|
|
$
|
267.5
|
|
|
$
|
317.0
|
|
|
$
|
(33.1
|
)
|
|
$
|
505.3
|
|
Net income
|
|
|
|
|
|
|
57.9
|
|
|
|
|
57.9
|
|
||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
0.6
|
|
|
0.6
|
|
||||||||||
Exercise of stock options
|
|
|
|
|
0.8
|
|
|
|
|
|
|
0.8
|
|
||||||||||
Share-based compensation
|
|
|
|
|
5.9
|
|
|
|
|
|
|
5.9
|
|
||||||||||
Balances as of June 30, 2019
|
$
|
0.2
|
|
|
$
|
(46.3
|
)
|
|
$
|
274.2
|
|
|
$
|
374.9
|
|
|
$
|
(32.5
|
)
|
|
$
|
570.5
|
|
|
Nine Months Ended June 30, 2020
|
||||||||||||||||||||||
(in millions)
|
Common Stock
|
|
Treasury Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss, net
|
|
Total
|
||||||||||||
Balances as of September 30, 2019
|
$
|
0.2
|
|
|
$
|
(50.1
|
)
|
|
$
|
276.8
|
|
|
$
|
402.1
|
|
|
$
|
(34.8
|
)
|
|
$
|
594.2
|
|
ASU 2018-02 cumulative transition adjustment
|
|
|
|
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
—
|
|
|||||||||
Adjusted Balances as of September 30, 2019
|
0.2
|
|
|
(50.1
|
)
|
|
276.8
|
|
|
402.8
|
|
|
(35.5
|
)
|
|
594.2
|
|
||||||
Net income
|
|
|
|
|
|
|
92.2
|
|
|
|
|
92.2
|
|
||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
(2.7
|
)
|
|
(2.7
|
)
|
||||||||||
Exercise of stock options
|
|
|
|
|
5.2
|
|
|
|
|
|
|
5.2
|
|
||||||||||
Share-based compensation
|
|
|
|
|
7.4
|
|
|
|
|
|
|
7.4
|
|
||||||||||
Repurchase of common stock
|
|
|
(7.5
|
)
|
|
|
|
|
|
|
|
(7.5
|
)
|
||||||||||
Balances as of June 30, 2020
|
$
|
0.2
|
|
|
$
|
(57.6
|
)
|
|
$
|
289.4
|
|
|
$
|
495.0
|
|
|
$
|
(38.2
|
)
|
|
$
|
688.8
|
|
|
Three Months Ended June 30,
|
Nine Months Ended June 30,
|
||||
|
2020
|
2020
|
||||
Operating lease costs (1)
|
$
|
4.1
|
|
$
|
11.1
|
|
|
|
|
||||
Supplemental cash flow information and non-cash activity:
|
|
|
||||
Cash paid for amounts included in the measurement of operating lease liabilities
|
$
|
2.9
|
|
$
|
8.4
|
|
Right-of-use assets obtained in exchange for operating lease liabilities
|
$
|
46.0
|
|
$
|
81.0
|
|
|
|
|
||||
Lease term and discount rate information:
|
|
|
||||
Weighted average remaining lease term (years)
|
|
11.64
|
|
|||
Weighted average discount rate
|
|
3.9
|
%
|
Remainder of 2020
|
$
|
3.8
|
|
2021
|
10.9
|
|
|
2022
|
11.1
|
|
|
2023
|
9.5
|
|
|
2024
|
7.7
|
|
|
After 2024
|
67.3
|
|
|
Total lease payments
|
110.3
|
|
|
Less: interest
|
22.9
|
|
|
Present value of lease liabilities
|
$
|
87.4
|
|
2020
|
$
|
11.2
|
|
2021
|
9.9
|
|
|
2022
|
7.5
|
|
|
2023
|
6.2
|
|
|
2024
|
5.8
|
|
|
Thereafter
|
2.6
|
|
|
|
$
|
43.2
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues from contracts with clients:
|
|
|
|
|
|
|
|
||||||||
Commission and clearing fees:
|
|
|
|
|
|
|
|
||||||||
Sales-based:
|
|
|
|
|
|
|
|
||||||||
Exchange-traded futures and options
|
$
|
36.4
|
|
|
$
|
40.4
|
|
|
$
|
108.9
|
|
|
$
|
110.7
|
|
OTC derivative brokerage
|
4.0
|
|
|
7.7
|
|
|
16.2
|
|
|
23.9
|
|
||||
Equities and fixed income
|
5.2
|
|
|
4.3
|
|
|
16.6
|
|
|
11.1
|
|
||||
Mutual funds
|
1.1
|
|
|
1.6
|
|
|
4.0
|
|
|
6.1
|
|
||||
Insurance and annuity products
|
1.7
|
|
|
2.1
|
|
|
6.2
|
|
|
5.1
|
|
||||
Other
|
0.3
|
|
|
0.3
|
|
|
1.1
|
|
|
1.0
|
|
||||
Total sales-based commission
|
48.7
|
|
|
56.4
|
|
|
153.0
|
|
|
157.9
|
|
||||
Trailing:
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
3.1
|
|
|
3.1
|
|
|
9.7
|
|
|
9.3
|
|
||||
Insurance and annuity products
|
3.6
|
|
|
3.6
|
|
|
11.3
|
|
|
10.7
|
|
||||
Total trailing commission
|
6.7
|
|
|
6.7
|
|
|
21.0
|
|
|
20.0
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Clearing fees
|
33.3
|
|
|
30.3
|
|
|
104.4
|
|
|
89.7
|
|
||||
Trade conversion fees
|
1.8
|
|
|
1.3
|
|
|
7.5
|
|
|
6.2
|
|
||||
Other
|
5.6
|
|
|
2.8
|
|
|
14.0
|
|
|
8.3
|
|
||||
Total commission and clearing fees:
|
96.1
|
|
|
97.5
|
|
|
299.9
|
|
|
282.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Consulting, management, and account fees:
|
|
|
|
|
|
|
|
||||||||
Underwriting fees
|
—
|
|
|
0.2
|
|
|
0.4
|
|
|
0.7
|
|
||||
Asset management fees
|
7.0
|
|
|
7.2
|
|
|
23.2
|
|
|
19.4
|
|
||||
Advisory and consulting fees
|
5.7
|
|
|
5.1
|
|
|
17.0
|
|
|
14.8
|
|
||||
Sweep program fees
|
1.0
|
|
|
4.2
|
|
|
8.6
|
|
|
12.1
|
|||||
Client account fees
|
2.8
|
|
|
2.6
|
|
|
8.9
|
|
|
7.8
|
|
||||
Other
|
2.9
|
|
|
1.4
|
|
|
5.2
|
|
|
4.1
|
|
||||
Total consulting, management, and account fees
|
19.4
|
|
|
20.7
|
|
|
63.3
|
|
|
58.9
|
|
||||
Total revenues from contracts with clients
|
$
|
115.5
|
|
|
$
|
118.2
|
|
|
$
|
363.2
|
|
|
$
|
341.0
|
|
|
|
|
|
|
|
|
|
||||||||
Method of revenue recognition:
|
|
|
|
|
|
|
|
||||||||
Point-in-time
|
$
|
95.1
|
|
|
$
|
95.0
|
|
|
$
|
293.4
|
|
|
$
|
274.7
|
|
Time elapsed
|
20.4
|
|
|
23.2
|
|
|
69.8
|
|
|
66.3
|
|
||||
Total revenues from contracts with clients
|
115.5
|
|
|
118.2
|
|
|
363.2
|
|
|
341.0
|
|
||||
Other sources of revenues
|
|
|
|
|
|
|
|
||||||||
Physical precious metals trading
|
7,621.2
|
|
|
7,327.8
|
|
|
37,973.9
|
|
|
19,944.2
|
|
||||
Physical agricultural and energy product trading
|
323.3
|
|
|
271.5
|
|
|
965.5
|
|
|
880.4
|
|
||||
Principal gains, net
|
161.0
|
|
|
102.3
|
|
|
442.0
|
|
|
305.4
|
|
||||
Interest income
|
22.4
|
|
|
53.2
|
|
|
110.1
|
|
|
146.4
|
|
||||
Total revenues
|
$
|
8,243.4
|
|
|
$
|
7,873.0
|
|
|
$
|
39,854.7
|
|
|
$
|
21,617.4
|
|
|
|
|
|
|
|
|
|
||||||||
Primary geographic region:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
554.2
|
|
|
$
|
474.8
|
|
|
$
|
1,652.1
|
|
|
$
|
1,458.4
|
|
Europe
|
114.1
|
|
|
77.8
|
|
|
375.7
|
|
|
184.9
|
|
||||
South America
|
14.6
|
|
|
15.3
|
|
|
46.1
|
|
|
39.2
|
|
||||
Middle East and Asia
|
7,558.5
|
|
|
7,303.8
|
|
|
37,777.3
|
|
|
19,929.7
|
|
||||
Other
|
2.0
|
|
|
1.3
|
|
|
3.5
|
|
|
5.2
|
|
||||
Total revenues
|
$
|
8,243.4
|
|
|
$
|
7,873.0
|
|
|
$
|
39,854.7
|
|
|
$
|
21,617.4
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
(in millions, except share amounts)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
36.6
|
|
|
$
|
16.3
|
|
|
$
|
92.2
|
|
|
$
|
57.9
|
|
Less: Allocation to participating securities
|
(0.9
|
)
|
|
(0.3
|
)
|
|
(2.1
|
)
|
|
(1.0
|
)
|
||||
Net income allocated to common stockholders
|
$
|
35.7
|
|
|
$
|
16.0
|
|
|
$
|
90.1
|
|
|
$
|
56.9
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average number of:
|
|
|
|
|
|
|
|
||||||||
Common shares outstanding
|
18,807,104
|
|
|
18,781,401
|
|
|
18,809,823
|
|
|
18,731,203
|
|
||||
Dilutive potential common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Share-based awards
|
296,062
|
|
|
230,125
|
|
|
312,858
|
|
|
272,517
|
|
||||
Diluted weighted-average common shares
|
19,103,166
|
|
|
19,011,526
|
|
|
19,122,681
|
|
|
19,003,720
|
|
|
June 30, 2020
|
||||||||||||||||||
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting (1)
|
|
Total
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Certificates of deposit
|
$
|
2.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.7
|
|
Money market mutual funds
|
11.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.4
|
|
|||||
Cash and cash equivalents
|
14.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.1
|
|
|||||
Commodities warehouse receipts
|
9.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.6
|
|
|||||
U.S. Treasury obligations
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||
Securities and other assets segregated under federal and other regulations
|
9.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.8
|
|
|||||
U.S. Treasury obligations
|
1,148.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,148.4
|
|
|||||
To be announced ("TBA") and forward settling securities
|
—
|
|
|
12.2
|
|
|
—
|
|
|
(5.3
|
)
|
|
6.9
|
|
|||||
Foreign government obligations
|
8.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.2
|
|
|||||
Derivatives
|
2,876.9
|
|
|
13.7
|
|
|
—
|
|
|
(2,792.5
|
)
|
|
98.1
|
|
|||||
Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net
|
4,033.5
|
|
|
25.9
|
|
|
—
|
|
|
(2,797.8
|
)
|
|
1,261.6
|
|
|||||
Equity securities
|
248.7
|
|
|
12.0
|
|
|
—
|
|
|
—
|
|
|
260.7
|
|
|||||
Corporate and municipal bonds
|
—
|
|
|
75.4
|
|
|
—
|
|
|
—
|
|
|
75.4
|
|
|||||
U.S. Treasury obligations
|
372.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
372.5
|
|
|||||
U.S. government agency obligations
|
—
|
|
|
347.8
|
|
|
—
|
|
|
—
|
|
|
347.8
|
|
|||||
Foreign government obligations
|
12.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.6
|
|
|||||
Agency mortgage-backed obligations
|
—
|
|
|
1,558.3
|
|
|
—
|
|
|
—
|
|
|
1,558.3
|
|
|||||
Asset-backed obligations
|
—
|
|
|
19.4
|
|
|
—
|
|
|
—
|
|
|
19.4
|
|
|||||
Derivatives
|
0.5
|
|
|
971.9
|
|
|
—
|
|
|
(880.0
|
)
|
|
92.4
|
|
|||||
Commodities leases
|
—
|
|
|
23.2
|
|
|
—
|
|
|
—
|
|
|
23.2
|
|
|||||
Commodities warehouse receipts
|
56.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56.4
|
|
|||||
Exchange firm common stock
|
9.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.8
|
|
|||||
Mutual funds and other
|
3.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|||||
Financial instruments owned
|
703.9
|
|
|
3,008.0
|
|
|
—
|
|
|
(880.0
|
)
|
|
2,831.9
|
|
|||||
Physical commodities inventory
|
19.8
|
|
|
153.8
|
|
|
—
|
|
|
—
|
|
|
173.6
|
|
|||||
Total assets at fair value
|
$
|
4,781.1
|
|
|
$
|
3,187.7
|
|
|
$
|
—
|
|
|
$
|
(3,677.8
|
)
|
|
$
|
4,291.0
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable and other accrued liabilities - contingent liabilities
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|||||
TBA and forward settling securities
|
—
|
|
|
12.6
|
|
|
—
|
|
|
(5.3
|
)
|
|
7.3
|
|
|||||
Derivatives
|
2,773.9
|
|
|
169.3
|
|
|
—
|
|
|
(2,941.7
|
)
|
|
1.5
|
|
|||||
Payable to broker-dealers, clearing organizations and counterparties
|
2,773.9
|
|
|
181.9
|
|
|
—
|
|
|
(2,947.0
|
)
|
|
8.8
|
|
|||||
Equity securities
|
202.2
|
|
|
15.4
|
|
|
—
|
|
|
—
|
|
|
217.6
|
|
|||||
Foreign government obligations
|
2.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|||||
Corporate and municipal bonds
|
—
|
|
|
26.1
|
|
|
—
|
|
|
—
|
|
|
26.1
|
|
|||||
U.S. Treasury obligations
|
354.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
354.1
|
|
|||||
U.S. government agency obligations
|
—
|
|
|
6.1
|
|
|
—
|
|
|
—
|
|
|
6.1
|
|
|||||
Agency mortgage-backed obligations
|
—
|
|
|
21.1
|
|
|
—
|
|
|
—
|
|
|
21.1
|
|
|||||
Derivatives
|
—
|
|
|
937.0
|
|
|
—
|
|
|
(838.3
|
)
|
|
98.7
|
|
|||||
Commodities leases
|
—
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|||||
Financial instruments sold, not yet purchased
|
558.5
|
|
|
1,008.1
|
|
|
—
|
|
|
(838.3
|
)
|
|
728.3
|
|
|||||
Total liabilities at fair value
|
$
|
3,332.4
|
|
|
$
|
1,190.0
|
|
|
$
|
1.6
|
|
|
$
|
(3,785.3
|
)
|
|
$
|
738.7
|
|
(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 is included in that level.
|
|
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
|
|
|||||
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
|
|
|||||
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 is included in that level.
|
|
June 30, 2020
|
|
September 30, 2019
|
||||||||||||
(in millions)
|
Assets (1)
|
|
Liabilities (1)
|
|
Assets (1)
|
|
Liabilities (1)
|
||||||||
Derivative contracts not accounted for as hedges:
|
|
|
|
|
|
|
|
||||||||
Exchange-traded commodity derivatives
|
$
|
1,949.1
|
|
|
$
|
2,085.0
|
|
|
$
|
1,437.1
|
|
|
$
|
1,463.4
|
|
OTC commodity derivatives
|
359.0
|
|
|
489.5
|
|
|
84.2
|
|
|
106.2
|
|
||||
Exchange-traded foreign exchange derivatives
|
11.4
|
|
|
14.3
|
|
|
36.9
|
|
|
33.5
|
|
||||
OTC foreign exchange derivatives
|
525.5
|
|
|
516.2
|
|
|
403.2
|
|
|
368.8
|
|
||||
Exchange-traded interest rate derivatives
|
852.9
|
|
|
603.7
|
|
|
900.1
|
|
|
882.0
|
|
||||
OTC interest rate derivatives
|
101.1
|
|
|
100.6
|
|
|
42.1
|
|
|
43.6
|
|
||||
Exchange-traded equity index derivatives
|
64.0
|
|
|
70.9
|
|
|
758.1
|
|
|
700.2
|
|
||||
TBA and forward settling securities
|
12.2
|
|
|
12.6
|
|
|
9.8
|
|
|
6.8
|
|
||||
Gross fair value of derivative contracts
|
3,875.2
|
|
|
3,892.8
|
|
|
3,671.5
|
|
|
3,604.5
|
|
||||
Impact of netting and collateral
|
(3,677.8
|
)
|
|
(3,785.3
|
)
|
|
(3,581.9
|
)
|
|
(3,540.8
|
)
|
||||
Total fair value included in 'Deposits with and receivables from broker-dealers, clearing organizations, and counterparties, net'
|
$
|
105.0
|
|
|
|
|
$
|
23.1
|
|
|
|
||||
Total fair value included in 'Financial instruments owned, at fair value
|
$
|
92.4
|
|
|
|
|
$
|
66.5
|
|
|
|
||||
Total fair value included in 'Payables to broker-dealers, clearing organizations and counterparties
|
|
|
$
|
8.8
|
|
|
|
|
$
|
5.6
|
|
||||
Fair value included in 'Financial instruments sold, not yet purchased, at fair value'
|
|
|
$
|
98.7
|
|
|
|
|
$
|
58.1
|
|
(1)
|
As of June 30, 2020 and September 30, 2019, the Company’s derivative contract volume for open positions were approximately 9.3 million and 10.6 million contracts, respectively.
|
|
June 30, 2020
|
|
September 30, 2019
|
||||||||||||
(in millions)
|
Gain / (Loss)
|
|
Notional Amounts
|
|
Gain / (Loss)
|
|
Notional Amounts
|
||||||||
Unrealized gain on TBA securities purchased within deposits with and receivables from broker-dealers, clearing organizations and counterparties, net and related notional amounts
|
$
|
7.7
|
|
|
$
|
2,170.9
|
|
|
$
|
3.7
|
|
|
$
|
1,778.4
|
|
Unrealized loss on TBA securities purchased within deposits with and receivables from broker-dealers, clearing organizations and counterparties, net and related notional amounts
|
$
|
(1.9
|
)
|
|
$
|
928.5
|
|
|
$
|
(0.6
|
)
|
|
$
|
234.5
|
|
Unrealized gain on TBA securities sold within payables to broker-dealers, clearing organizations and counterparties and related notional amounts
|
$
|
3.4
|
|
|
$
|
(1,566.8
|
)
|
|
$
|
0.9
|
|
|
$
|
(451.6
|
)
|
Unrealized loss on TBA securities sold within payables to broker-dealers, clearing organizations and counterparties and related notional amounts
|
$
|
(10.2
|
)
|
|
$
|
(2,982.1
|
)
|
|
$
|
(5.9
|
)
|
|
$
|
(2,788.0
|
)
|
Unrealized gain on forward settling securities purchased within deposits with and receivables from broker-dealers, clearing organizations and counterparties, net and related notional amounts
|
$
|
1.1
|
|
|
1,690.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Unrealized loss on forward settling securities purchased within payables to broker-dealers, clearing organizations and counterparties and related notional amounts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.3
|
)
|
|
$
|
1,243.5
|
|
Unrealized gain on forward settling securities sold within deposits with and receivables from broker-dealers, clearing organizations and counterparties, net and related notional amounts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.2
|
|
|
$
|
(581.2
|
)
|
Unrealized loss on forward settling securities sold within payables to broker-dealers, clearing organizations and counterparties and related notional amounts
|
$
|
(0.5
|
)
|
|
(1,268.3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(1) The notional amounts of these instruments reflect the extent of the Company's involvement in TBA and forward settling securities and do not represent risk of loss due to counterparty non-performance.
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
(in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Commodities
|
$
|
28.1
|
|
|
$
|
19.5
|
|
|
$
|
107.9
|
|
|
$
|
63.6
|
|
Foreign exchange
|
2.6
|
|
|
1.6
|
|
|
9.9
|
|
|
5.3
|
|
||||
Interest rate and equity
|
0.7
|
|
|
(0.6
|
)
|
|
0.3
|
|
|
(3.2
|
)
|
||||
TBA and forward settling securities
|
(5.6
|
)
|
|
(8.0
|
)
|
|
(40.9
|
)
|
|
(6.7
|
)
|
||||
Net gains from derivative contracts
|
$
|
25.8
|
|
|
$
|
12.5
|
|
|
$
|
77.2
|
|
|
$
|
59.0
|
|
(in millions)
|
June 30,
2020 |
|
September 30,
2019 |
||||
Physical Ag & Energy(1)
|
$
|
153.8
|
|
|
$
|
144.8
|
|
Precious metals - held by broker-dealer subsidiary(2)
|
19.8
|
|
|
7.1
|
|
||
Precious metals - held by non-broker-dealer subsidiaries(3)
|
96.6
|
|
|
77.4
|
|
||
Physical commodities inventory
|
$
|
270.2
|
|
|
$
|
229.3
|
|
(in millions)
|
June 30,
2020 |
|
September 30,
2019 |
||||
Commercial Hedging
|
$
|
30.3
|
|
|
$
|
30.3
|
|
Global Payments
|
11.8
|
|
|
7.6
|
|
||
Physical Commodities
|
4.6
|
|
|
4.6
|
|
||
Securities
|
8.7
|
|
|
8.7
|
|
||
Goodwill
|
$
|
55.4
|
|
|
$
|
51.2
|
|
|
June 30, 2020
|
|
September 30, 2019
|
||||||||||||||||||||
|
Gross Amount
|
|
Accumulated
Amortization
|
|
Net Amount
|
|
Gross Amount
|
|
Accumulated
Amortization
|
|
Net Amount
|
||||||||||||
Intangible assets subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Software programs/platforms
|
$
|
5.3
|
|
|
$
|
(3.4
|
)
|
|
$
|
1.9
|
|
|
$
|
5.3
|
|
|
$
|
(3.0
|
)
|
|
$
|
2.3
|
|
Customer base
|
29.1
|
|
|
(15.1
|
)
|
|
14.0
|
|
|
22.1
|
|
|
(12.5
|
)
|
|
9.6
|
|
||||||
Total intangible assets subject to amortization:
|
34.4
|
|
|
(18.5
|
)
|
|
15.9
|
|
|
27.4
|
|
|
(15.5
|
)
|
|
11.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Intangible assets not subject to amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Website domains
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
||||||
Business licenses
|
2.9
|
|
|
—
|
|
|
2.9
|
|
|
2.7
|
|
|
—
|
|
|
2.7
|
|
||||||
Total intangible assets not subject to amortization:
|
5.0
|
|
|
—
|
|
|
5.0
|
|
|
4.8
|
|
|
—
|
|
|
4.8
|
|
||||||
Total intangible assets
|
$
|
39.4
|
|
|
$
|
(18.5
|
)
|
|
$
|
20.9
|
|
|
$
|
32.2
|
|
|
$
|
(15.5
|
)
|
|
$
|
16.7
|
|
(in millions)
|
|
||
Fiscal 2020 (Remaining three months)
|
$
|
1.0
|
|
Fiscal 2021
|
4.2
|
|
|
Fiscal 2022
|
2.9
|
|
|
Fiscal 2023
|
2.7
|
|
|
Fiscal 2024 and thereafter
|
5.1
|
|
|
Total intangible assets subject to amortization
|
$
|
15.9
|
|
•
|
$379.0 million senior facility available to StoneX Group Inc. for general working capital requirements. During the three months ended December 31, 2019, additional members were added to the lending syndication 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. 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.
|
•
|
$75.0 million facility available to the Company’s wholly owned subsidiary, StoneX Financial Inc., for short-term funding of margin to exchange-clearing organizations. The facility is subject to annual review and guaranteed by StoneX Group Inc.
|
•
|
$260.0 million facility available to the Company’s wholly owned subsidiary, FCStone Merchant Services, LLC, for financing traditional commodity financing arrangements and commodity repurchase agreements. The facility is guaranteed by StoneX Group Inc.
|
•
|
$25.0 million facility available to the Company’s wholly owned subsidiary, StoneX Financial Ltd., for short-term funding of margin to exchange-clearing organizations. The facility is guaranteed by StoneX Group Inc.
|
|
June 30, 2020
|
||||||||||||||||||
|
Overnight and Open
|
|
Less than 30 Days
|
|
30-90 Days
|
|
Over 90 Days
|
|
Total
|
||||||||||
Securities sold under agreements to repurchase
|
$
|
2,079.3
|
|
|
$
|
899.1
|
|
|
$
|
492.0
|
|
|
$
|
60.0
|
|
|
$
|
3,530.4
|
|
Securities loaned
|
1,459.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,459.7
|
|
|||||
Gross amount of secured financing
|
$
|
3,539.0
|
|
|
$
|
899.1
|
|
|
$
|
492.0
|
|
|
$
|
60.0
|
|
|
$
|
4,990.1
|
|
|
September 30, 2019
|
||||||||||||||||||
|
Overnight and Open
|
|
Less than 30 Days
|
|
30-90 Days
|
|
Over 90 Days
|
|
Total
|
||||||||||
Securities sold under agreements to repurchase
|
$
|
1,553.9
|
|
|
$
|
565.8
|
|
|
$
|
654.0
|
|
|
$
|
—
|
|
|
$
|
2,773.7
|
|
Securities loaned
|
1,459.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,459.9
|
|
|||||
Gross amount of secured financing
|
$
|
3,013.8
|
|
|
$
|
565.8
|
|
|
$
|
654.0
|
|
|
$
|
—
|
|
|
$
|
4,233.6
|
|
Securities sold under agreements to repurchase
|
June 30, 2020
|
|
September 30, 2019
|
||||
U.S. Treasury obligations
|
$
|
1,075.8
|
|
|
$
|
108.8
|
|
U.S. government agency obligations
|
206.8
|
|
|
359.5
|
|
||
Asset-backed obligations
|
17.1
|
|
|
96.7
|
|
||
Agency mortgage-backed obligations
|
2,163.8
|
|
|
2,208.7
|
|
||
Corporate bonds
|
66.9
|
|
|
—
|
|
||
Total securities sold under agreement to repurchase
|
3,530.4
|
|
|
2,773.7
|
|
||
|
|
|
|
||||
Securities loaned
|
|
|
|
||||
Equity securities
|
1,459.7
|
|
|
1,459.9
|
|
||
Total securities loaned
|
1,459.7
|
|
|
1,459.9
|
|
||
Gross amount of secured financing
|
$
|
4,990.1
|
|
|
$
|
4,233.6
|
|
|
June 30, 2020
|
||||||||||
Offsetting of collateralized transactions:
|
Gross Amounts Recognized
|
|
Amounts Offset in the Condensed Consolidated Balance Sheet
|
|
Net Amounts Presented in the Condensed Consolidated Balance Sheet
|
||||||
Securities purchased under agreements to resell
|
$
|
1,757.3
|
|
|
$
|
—
|
|
|
$
|
1,757.3
|
|
Securities borrowed
|
$
|
1,467.4
|
|
|
$
|
—
|
|
|
$
|
1,467.4
|
|
Securities sold under agreements to repurchase
|
$
|
3,530.4
|
|
|
$
|
—
|
|
|
$
|
3,530.4
|
|
Securities loaned
|
$
|
1,459.7
|
|
|
$
|
—
|
|
|
$
|
1,459.7
|
|
|
September 30, 2019
|
||||||||||
Offsetting of collateralized transactions:
|
Gross Amounts Recognized
|
|
Amounts Offset in the Condensed Consolidated Balance Sheet
|
|
Net Amounts Presented in the Condensed 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
|
|
(in millions)
|
|
|
|
|
|
As of June 30, 2020
|
||||||
Subsidiary
|
Regulatory Authority
|
Jurisdiction
|
|
Requirement Type
|
|
Actual
|
|
Minimum
Requirement
|
||||
StoneX Financial Inc.
|
SEC and CFTC
|
United States
|
|
Net capital
|
|
$
|
198.6
|
|
|
$
|
126.0
|
|
StoneX Financial Inc.
|
CFTC
|
United States
|
|
Segregated funds
|
|
$
|
2,705.6
|
|
|
$
|
2,650.1
|
|
StoneX Financial Inc.
|
CFTC
|
United States
|
|
Secured funds
|
|
$
|
160.6
|
|
|
$
|
148.8
|
|
StoneX Financial Inc. (1)
|
SEC
|
United States
|
|
Customer reserve
|
|
$
|
43.7
|
|
|
$
|
46.8
|
|
StoneX Financial Ltd
|
Financial Conduct Authority ("FCA")
|
United Kingdom
|
|
Net capital
|
|
$
|
264.9
|
|
|
$
|
110.8
|
|
StoneX Financial Ltd
|
FCA
|
United Kingdom
|
|
Segregated funds
|
|
$
|
471.8
|
|
|
$
|
467.4
|
|
StoneX Financial Pte. Ltd.
|
Monetary Authority of Singapore ("MAS")
|
Singapore
|
|
Segregated funds
|
|
$
|
313.8
|
|
|
$
|
307.0
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
(in millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Contingent consideration, net
|
$
|
0.2
|
|
|
$
|
—
|
|
|
$
|
0.3
|
|
|
$
|
—
|
|
Insurance
|
1.1
|
|
|
0.9
|
|
|
3.1
|
|
|
2.6
|
|
||||
Advertising, meetings and conferences
|
0.5
|
|
|
1.2
|
|
|
6.1
|
|
|
4.1
|
|
||||
Office supplies and printing
|
0.6
|
|
|
0.5
|
|
|
1.5
|
|
|
1.5
|
|
||||
Other clearing related expenses
|
0.8
|
|
|
0.7
|
|
|
2.2
|
|
|
1.8
|
|
||||
Other non-income taxes
|
1.2
|
|
|
1.1
|
|
|
3.8
|
|
|
3.2
|
|
||||
Other
|
3.2
|
|
|
2.7
|
|
|
8.7
|
|
|
7.8
|
|
||||
Total other expenses
|
$
|
7.6
|
|
|
$
|
7.1
|
|
|
$
|
25.7
|
|
|
$
|
21.0
|
|
(in millions)
|
|
Foreign Currency Translation Adjustment
|
|
Pension Benefits Adjustment
|
|
Accumulated Other Comprehensive Loss, net
|
|||||||
Balances as of September 30, 2019
|
|
$
|
(31.5
|
)
|
|
$
|
(3.3
|
)
|
|
$
|
(34.8
|
)
|
|
ASU 2018-02 cumulative transition adjustment
|
|
—
|
|
|
(0.7
|
)
|
|
(0.7
|
)
|
||||
Adjusted Balances as of September 30, 2019
|
|
(31.5
|
)
|
|
(4.0
|
)
|
|
(35.5
|
)
|
||||
Other comprehensive loss
|
|
(2.7
|
)
|
—
|
|
—
|
|
|
(2.7
|
)
|
|||
Balances as of June 30, 2020
|
|
$
|
(34.2
|
)
|
|
$
|
(4.0
|
)
|
|
$
|
(38.2
|
)
|
|
|
|
|
|
|
|
|
•
|
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)
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||
(in millions)
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales of physical commodities
|
$
|
7,944.5
|
|
|
5
|
%
|
|
$
|
7,599.3
|
|
|
$
|
38,939.4
|
|
|
87
|
%
|
|
$
|
20,824.6
|
|
Principal gains, net
|
161.0
|
|
|
57
|
%
|
|
102.3
|
|
|
442.0
|
|
|
45
|
%
|
|
305.4
|
|
||||
Commission and clearing fees
|
96.1
|
|
|
(1
|
)%
|
|
97.5
|
|
|
299.9
|
|
|
6
|
%
|
|
282.1
|
|
||||
Consulting, management, and account fees
|
19.4
|
|
|
(6
|
)%
|
|
20.7
|
|
|
63.3
|
|
|
7
|
%
|
|
58.9
|
|
||||
Interest income
|
22.4
|
|
|
(58
|
)%
|
|
53.2
|
|
|
110.1
|
|
|
(25
|
)%
|
|
146.4
|
|
||||
Total revenues
|
8,243.4
|
|
|
5
|
%
|
|
7,873.0
|
|
|
39,854.7
|
|
|
84
|
%
|
|
21,617.4
|
|
||||
Cost of sales of physical commodities
|
7,920.8
|
|
|
4
|
%
|
|
7,589.6
|
|
|
38,888.5
|
|
|
87
|
%
|
|
20,798.2
|
|
||||
Operating revenues
|
322.6
|
|
|
14
|
%
|
|
283.4
|
|
|
966.2
|
|
|
18
|
%
|
|
819.2
|
|
||||
Transaction-based clearing expenses
|
55.3
|
|
|
21
|
%
|
|
45.7
|
|
|
165.4
|
|
|
19
|
%
|
|
138.5
|
|
||||
Introducing broker commissions
|
24.0
|
|
|
(19
|
)%
|
|
29.6
|
|
|
79.8
|
|
|
(8
|
)%
|
|
87.0
|
|
||||
Interest expense
|
15.4
|
|
|
(64
|
)%
|
|
42.5
|
|
|
79.2
|
|
|
(30
|
)%
|
|
113.9
|
|
||||
Net operating revenues
|
227.9
|
|
|
38
|
%
|
|
165.6
|
|
|
641.8
|
|
|
34
|
%
|
|
479.8
|
|
||||
Compensation and benefits
|
132.5
|
|
|
31
|
%
|
|
100.9
|
|
|
373.2
|
|
|
30
|
%
|
|
287.9
|
|
||||
Bad debts
|
1.8
|
|
|
260
|
%
|
|
0.5
|
|
|
6.2
|
|
|
313
|
%
|
|
1.5
|
|
||||
Recovery of bad debt on physical coal
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(100
|
)%
|
|
(2.4
|
)
|
||||
Other expenses
|
44.6
|
|
|
5
|
%
|
|
42.6
|
|
|
135.7
|
|
|
12
|
%
|
|
121.3
|
|
||||
Total compensation and other expenses
|
178.9
|
|
|
24
|
%
|
|
144.0
|
|
|
515.1
|
|
|
26
|
%
|
|
408.3
|
|
||||
Other gain
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(98
|
)%
|
|
5.4
|
|
||||
Income before tax
|
49.0
|
|
|
127
|
%
|
|
21.6
|
|
|
126.8
|
|
|
65
|
%
|
|
76.9
|
|
||||
Income tax expense
|
12.4
|
|
|
134
|
%
|
|
5.3
|
|
|
34.6
|
|
|
82
|
%
|
|
19.0
|
|
||||
Net income
|
$
|
36.6
|
|
|
125
|
%
|
|
$
|
16.3
|
|
|
$
|
92.2
|
|
|
59
|
%
|
|
$
|
57.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance Sheet information:
|
|
|
|
|
|
|
June 30, 2020
|
|
% Change
|
|
June 30, 2019
|
||||||||||
Total assets
|
|
|
|
|
|
|
$
|
12,389.5
|
|
|
23
|
%
|
|
$
|
10,054.9
|
|
|||||
Payables to lenders under loans
|
|
|
|
|
|
|
$
|
313.8
|
|
|
(7
|
)%
|
|
$
|
337.7
|
|
|||||
Senior secured tern loan, net
|
|
|
|
|
|
|
$
|
518.9
|
|
|
206
|
%
|
|
$
|
169.7
|
|
|||||
Stockholders’ equity
|
|
|
|
|
|
|
$
|
688.8
|
|
|
21
|
%
|
|
$
|
570.5
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||||
Volumes and Other Data:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Exchange-traded - futures and options (contracts, 000’s)
|
37,627.4
|
|
|
18
|
%
|
|
31,765.5
|
|
|
119,299.3
|
|
|
21
|
%
|
|
98,352.9
|
|
||||
OTC (contracts, 000’s)
|
539.5
|
|
|
4
|
%
|
|
518.0
|
|
|
1,638.0
|
|
|
25
|
%
|
|
1,310.8
|
|
||||
Global Payments (# of payments, 000’s)
|
194.8
|
|
|
11
|
%
|
|
174.9
|
|
|
592.9
|
|
|
18
|
%
|
|
504.3
|
|
||||
Gold equivalent ounces traded (000’s)
|
101,596.1
|
|
|
13
|
%
|
|
90,283.7
|
|
|
330,429.8
|
|
|
26
|
%
|
|
263,224.4
|
|
||||
Equity Capital Markets (gross dollar volume, millions)
|
$
|
64,606.3
|
|
|
83
|
%
|
|
$
|
35,355.5
|
|
|
$
|
191,490.5
|
|
|
65
|
%
|
|
$
|
115,903.0
|
|
Debt Capital Markets (gross dollar volume, millions)
|
$
|
46,596.0
|
|
|
8
|
%
|
|
$
|
43,094.6
|
|
|
$
|
138,411.7
|
|
|
(15
|
)%
|
|
$
|
162,001.9
|
|
FX Prime Brokerage volume (U.S. notional, millions)
|
$
|
58,300.5
|
|
|
(30
|
)%
|
|
$
|
83,469.9
|
|
|
$
|
262,650.8
|
|
|
3
|
%
|
|
$
|
253,850.2
|
|
Average assets under management in Argentina (U.S. dollar equivalents, millions)
|
$
|
326.6
|
|
|
(7
|
)%
|
|
$
|
351.5
|
|
|
$
|
313.2
|
|
|
(4
|
)%
|
|
$
|
327.2
|
|
Average client equity - futures and options (U.S. dollar, millions)
|
$
|
3,026.5
|
|
|
57
|
%
|
|
$
|
1,927.3
|
|
|
$
|
2,576.2
|
|
|
25
|
%
|
|
$
|
2,065.4
|
|
Average money market / FDIC sweep client balances (U.S. dollar, millions)
|
$
|
1,260.5
|
|
|
64
|
%
|
|
$
|
769.3
|
|
|
$
|
1,066.3
|
|
|
38
|
%
|
|
$
|
771.2
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||
(in millions)
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||||
Compensation and benefits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Variable compensation and benefits
|
$
|
78.5
|
|
|
45
|
%
|
|
$
|
54.0
|
|
|
$
|
215.7
|
|
|
41
|
%
|
|
$
|
153.1
|
|
Fixed compensation and benefits
|
54.0
|
|
|
15
|
%
|
|
46.9
|
|
|
157.5
|
|
|
17
|
%
|
|
134.8
|
|
||||
|
132.5
|
|
|
31
|
%
|
|
100.9
|
|
|
373.2
|
|
|
30
|
%
|
|
287.9
|
|
||||
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading systems and market information
|
11.8
|
|
|
20
|
%
|
|
9.8
|
|
|
33.4
|
|
|
17
|
%
|
|
28.5
|
|
||||
Occupancy and equipment rental
|
5.4
|
|
|
8
|
%
|
|
5.0
|
|
|
15.3
|
|
|
6
|
%
|
|
14.4
|
|
||||
Professional fees
|
6.1
|
|
|
5
|
%
|
|
5.8
|
|
|
16.8
|
|
|
4
|
%
|
|
16.1
|
|
||||
Travel and business development
|
0.7
|
|
|
(83
|
)%
|
|
4.0
|
|
|
8.4
|
|
|
(29
|
)%
|
|
11.8
|
|
||||
Non-trading technology and support
|
6.9
|
|
|
19
|
%
|
|
5.8
|
|
|
18.8
|
|
|
25
|
%
|
|
15.0
|
|
||||
Depreciation and amortization
|
4.4
|
|
|
26
|
%
|
|
3.5
|
|
|
12.5
|
|
|
30
|
%
|
|
9.6
|
|
||||
Communications
|
1.7
|
|
|
6
|
%
|
|
1.6
|
|
|
4.8
|
|
|
(2
|
)%
|
|
4.9
|
|
||||
Bad debts
|
1.8
|
|
|
260
|
%
|
|
0.5
|
|
|
6.2
|
|
|
313
|
%
|
|
1.5
|
|
||||
Recovery of bad debt on physical coal
|
—
|
|
|
n/m
|
|
|
—
|
|
|
—
|
|
|
n/m
|
|
|
(2.4
|
)
|
||||
Other
|
7.6
|
|
|
7
|
%
|
|
7.1
|
|
|
25.7
|
|
|
22
|
%
|
|
21.0
|
|
||||
|
46.4
|
|
|
8
|
%
|
|
43.1
|
|
|
141.9
|
|
|
18
|
%
|
|
120.4
|
|
||||
Total compensation and other expenses
|
$
|
178.9
|
|
|
24
|
%
|
|
$
|
144.0
|
|
|
$
|
515.1
|
|
|
26
|
%
|
|
$
|
408.3
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||
(in millions)
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||||
Compensation and benefits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Variable compensation and benefits
|
$
|
8.9
|
|
|
46
|
%
|
|
$
|
6.1
|
|
|
$
|
25.2
|
|
|
39
|
%
|
|
$
|
18.1
|
|
Fixed compensation and benefits
|
20.6
|
|
|
11
|
%
|
|
18.6
|
|
|
62.3
|
|
|
15
|
%
|
|
54.2
|
|
||||
|
29.5
|
|
|
19
|
%
|
|
24.7
|
|
|
87.5
|
|
|
21
|
%
|
|
72.3
|
|
||||
Other expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Trading systems and market information
|
0.9
|
|
|
200
|
%
|
|
0.3
|
|
|
2.1
|
|
|
110
|
%
|
|
1.0
|
|
||||
Occupancy and equipment rental
|
5.3
|
|
|
6
|
%
|
|
5.0
|
|
|
15.2
|
|
|
6
|
%
|
|
14.3
|
|
||||
Professional fees
|
5.3
|
|
|
61
|
%
|
|
3.3
|
|
|
13.2
|
|
|
31
|
%
|
|
10.1
|
|
||||
Travel and business development
|
0.2
|
|
|
(71
|
)%
|
|
0.7
|
|
|
2.2
|
|
|
(21
|
)%
|
|
2.8
|
|
||||
Non-trading technology and support
|
5.3
|
|
|
20
|
%
|
|
4.4
|
|
|
14.7
|
|
|
30
|
%
|
|
11.3
|
|
||||
Depreciation and amortization
|
4.1
|
|
|
46
|
%
|
|
2.8
|
|
|
11.8
|
|
|
53
|
%
|
|
7.7
|
|
||||
Communications
|
1.5
|
|
|
7
|
%
|
|
1.4
|
|
|
4.2
|
|
|
(9
|
)%
|
|
4.6
|
|
||||
Other
|
5.1
|
|
|
24
|
%
|
|
4.1
|
|
|
15.5
|
|
|
27
|
%
|
|
12.2
|
|
||||
|
27.7
|
|
|
26
|
%
|
|
22.0
|
|
|
78.9
|
|
|
23
|
%
|
|
64.0
|
|
||||
Total compensation and other expenses
|
$
|
57.2
|
|
|
22
|
%
|
|
$
|
46.7
|
|
|
$
|
166.4
|
|
|
22
|
%
|
|
$
|
136.3
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||||||||
(in millions)
|
2020
|
|
% of
Total
|
|
2019
|
|
% of
Total
|
|
2020
|
|
% of
Total
|
|
2019
|
|
% of
Total
|
||||||||||||
Variable compensation and benefits
|
$
|
78.5
|
|
|
30
|
%
|
|
$
|
54.0
|
|
|
25
|
%
|
|
$
|
215.7
|
|
|
29
|
%
|
|
$
|
153.1
|
|
|
24
|
%
|
Transaction-based clearing expenses
|
55.3
|
|
|
22
|
%
|
|
45.7
|
|
|
21
|
%
|
|
165.4
|
|
|
22
|
%
|
|
138.5
|
|
|
22
|
%
|
||||
Introducing broker commissions
|
24.0
|
|
|
9
|
%
|
|
29.6
|
|
|
13
|
%
|
|
79.8
|
|
|
10
|
%
|
|
87.0
|
|
|
14
|
%
|
||||
Total variable expenses
|
157.8
|
|
|
61
|
%
|
|
129.3
|
|
|
59
|
%
|
|
460.9
|
|
|
61
|
%
|
|
378.6
|
|
|
60
|
%
|
||||
Fixed compensation and benefits
|
54.0
|
|
|
21
|
%
|
|
46.9
|
|
|
21
|
%
|
|
157.5
|
|
|
20
|
%
|
|
134.8
|
|
|
21
|
%
|
||||
Other fixed expenses
|
44.6
|
|
|
17
|
%
|
|
42.6
|
|
|
20
|
%
|
|
135.7
|
|
|
18
|
%
|
|
121.3
|
|
|
19
|
%
|
||||
Bad debts
|
1.8
|
|
|
1
|
%
|
|
0.5
|
|
|
—
|
%
|
|
6.2
|
|
|
1
|
%
|
|
1.5
|
|
|
—
|
%
|
||||
Recovery of bad debt on physical coal
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
(2.4
|
)
|
|
—
|
%
|
||||
Total non-variable expenses
|
100.4
|
|
|
39
|
%
|
|
90.0
|
|
|
41
|
%
|
|
299.4
|
|
|
39
|
%
|
|
255.2
|
|
|
40
|
%
|
||||
Total non-interest expenses
|
$
|
258.2
|
|
|
100
|
%
|
|
$
|
219.3
|
|
|
100
|
%
|
|
$
|
760.3
|
|
|
100
|
%
|
|
$
|
633.8
|
|
|
100
|
%
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||||||
(in millions)
|
2020
|
|
% of Operating Revenues
|
|
2019
|
|
% of Operating Revenues
|
|
2020
|
|
% of Operating Revenues
|
|
2019
|
|
% of Operating Revenues
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales of physical commodities
|
$
|
7,944.5
|
|
|
|
|
$
|
7,599.3
|
|
|
|
|
$
|
38,939.4
|
|
|
|
|
$
|
20,824.6
|
|
|
|
Principal gains, net
|
161.9
|
|
|
|
|
100.9
|
|
|
|
|
441.5
|
|
|
|
|
305.4
|
|
|
|
||||
Commission and clearing fees
|
96.6
|
|
|
|
|
97.2
|
|
|
|
|
301.1
|
|
|
|
|
282.4
|
|
|
|
||||
Consulting, management, and account fees
|
17.3
|
|
|
|
|
20.1
|
|
|
|
|
60.2
|
|
|
|
|
57.1
|
|
|
|
||||
Interest income
|
24.1
|
|
|
|
|
55.2
|
|
|
|
|
117.6
|
|
|
|
|
153.8
|
|
|
|
||||
Total revenues
|
8,244.4
|
|
|
|
|
7,872.7
|
|
|
|
|
39,859.8
|
|
|
|
|
21,623.3
|
|
|
|
||||
Cost of sales of physical commodities
|
7,920.8
|
|
|
|
|
7,589.6
|
|
|
|
|
38,888.5
|
|
|
|
|
20,798.2
|
|
|
|
||||
Operating revenues
|
323.6
|
|
|
100%
|
|
283.1
|
|
|
100%
|
|
971.3
|
|
|
100%
|
|
825.1
|
|
|
100%
|
||||
Transaction-based clearing expenses
|
54.9
|
|
|
17%
|
|
45.4
|
|
|
16%
|
|
164.4
|
|
|
17%
|
|
137.8
|
|
|
17%
|
||||
Introducing broker commissions
|
24.0
|
|
|
7%
|
|
29.5
|
|
|
10%
|
|
79.8
|
|
|
8%
|
|
86.9
|
|
|
11%
|
||||
Interest expense
|
12.3
|
|
|
4%
|
|
41.3
|
|
|
15%
|
|
74.6
|
|
|
8%
|
|
110.1
|
|
|
13%
|
||||
Net operating revenues
|
232.4
|
|
|
|
|
166.9
|
|
|
|
|
652.5
|
|
|
|
|
490.3
|
|
|
|
||||
Variable direct compensation and benefits
|
68.8
|
|
|
21%
|
|
47.3
|
|
|
17%
|
|
188.2
|
|
|
19%
|
|
133.1
|
|
|
16%
|
||||
Net contribution
|
163.6
|
|
|
|
|
119.6
|
|
|
|
|
464.3
|
|
|
|
|
357.2
|
|
|
|
||||
Fixed compensation and benefits
|
29.0
|
|
|
|
|
24.5
|
|
|
|
|
82.4
|
|
|
|
|
69.3
|
|
|
|
||||
Other fixed expenses
|
22.1
|
|
|
|
|
25.0
|
|
|
|
|
71.9
|
|
|
|
|
70.5
|
|
|
|
||||
Bad debts
|
1.8
|
|
|
|
|
0.5
|
|
|
|
|
6.2
|
|
|
|
|
1.5
|
|
|
|
||||
Recovery of bad debt on physical coal
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(2.4
|
)
|
|
|
||||
Total non-variable direct expenses
|
52.9
|
|
|
16%
|
|
50.0
|
|
|
18%
|
|
160.5
|
|
|
17%
|
|
138.9
|
|
|
17%
|
||||
Segment income
|
$
|
110.7
|
|
|
|
|
$
|
69.6
|
|
|
|
|
$
|
303.8
|
|
|
|
|
$
|
218.3
|
|
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||
(in millions)
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales of physical commodities
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
Principal gains, net
|
29.2
|
|
|
(26)%
|
|
39.3
|
|
|
120.0
|
|
|
18%
|
|
101.4
|
|
||||
Commission and clearing fees
|
30.1
|
|
|
(17)%
|
|
36.2
|
|
|
91.4
|
|
|
—%
|
|
91.7
|
|
||||
Consulting, management, and account fees
|
4.0
|
|
|
3%
|
|
3.9
|
|
|
12.5
|
|
|
7%
|
|
11.7
|
|
||||
Interest income
|
1.8
|
|
|
(74)%
|
|
7.0
|
|
|
12.6
|
|
|
(43)%
|
|
22.0
|
|
||||
Total revenues
|
65.1
|
|
|
(25)%
|
|
86.4
|
|
|
236.5
|
|
|
4%
|
|
226.8
|
|
||||
Cost of sales of physical commodities
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
||||
Operating revenues
|
65.1
|
|
|
(25)%
|
|
86.4
|
|
|
236.5
|
|
|
4%
|
|
226.8
|
|
||||
Transaction-based clearing expenses
|
9.4
|
|
|
(10)%
|
|
10.5
|
|
|
29.1
|
|
|
3%
|
|
28.3
|
|
||||
Introducing broker commissions
|
4.8
|
|
|
(44)%
|
|
8.5
|
|
|
17.1
|
|
|
(11)%
|
|
19.2
|
|
||||
Interest expense
|
0.1
|
|
|
(80)%
|
|
0.5
|
|
|
0.9
|
|
|
(31)%
|
|
1.3
|
|
||||
Net operating revenues
|
50.8
|
|
|
(24)%
|
|
66.9
|
|
|
189.4
|
|
|
6%
|
|
178.0
|
|
||||
Variable compensation and benefits
|
14.8
|
|
|
(22)%
|
|
18.9
|
|
|
55.5
|
|
|
11%
|
|
50.1
|
|
||||
Net contribution
|
36.0
|
|
|
(25)%
|
|
48.0
|
|
|
133.9
|
|
|
5%
|
|
127.9
|
|
||||
Fixed compensation and benefits
|
8.9
|
|
|
7%
|
|
8.3
|
|
|
26.3
|
|
|
5%
|
|
25.0
|
|
||||
Other fixed expenses
|
8.5
|
|
|
(11)%
|
|
9.6
|
|
|
27.8
|
|
|
(2)%
|
|
28.5
|
|
||||
Bad debts
|
(0.6
|
)
|
|
(250)%
|
|
0.4
|
|
|
3.3
|
|
|
175%
|
|
1.2
|
|
||||
Total non-variable direct expenses
|
16.8
|
|
|
(8)%
|
|
18.3
|
|
|
57.4
|
|
|
5%
|
|
54.7
|
|
||||
Segment income
|
$
|
19.2
|
|
|
(35)%
|
|
$
|
29.7
|
|
|
$
|
76.5
|
|
|
5%
|
|
$
|
73.2
|
|
|
OTC
|
||||||||||||||||||
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||
Transactional revenues (in millions):
|
|
|
|
|
|
|
|
|
|||||||||||
Agricultural
|
$
|
15.3
|
|
|
(42)%
|
|
$
|
26.3
|
|
|
$
|
53.5
|
|
|
(10)%
|
|
$
|
59.2
|
|
Energy and renewable fuels
|
4.3
|
|
|
—%
|
|
4.3
|
|
|
30.1
|
|
|
121%
|
|
13.6
|
|
||||
Other
|
2.3
|
|
|
64%
|
|
1.4
|
|
|
6.5
|
|
|
183%
|
|
2.3
|
|
||||
|
$
|
21.9
|
|
|
(32)%
|
|
$
|
32.0
|
|
|
$
|
90.1
|
|
|
20%
|
|
$
|
75.1
|
|
Selected data:
|
|
|
|
|
|
|
|
|
|||||||||||
Volume (contracts, 000’s)
|
539.5
|
|
|
4%
|
|
518.0
|
|
|
1,638.0
|
|
|
25%
|
|
1,310.8
|
|
||||
Average rate per contract
|
$
|
39.23
|
|
|
(35)%
|
|
$
|
60.49
|
|
|
$
|
53.62
|
|
|
(4)%
|
|
$
|
55.60
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||
(in millions)
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales of physical commodities
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
Principal gains, net
|
25.9
|
|
|
(6)%
|
|
27.5
|
|
|
83.4
|
|
|
2%
|
|
81.7
|
|
||||
Commission and clearing fees
|
0.9
|
|
|
(10)%
|
|
1.0
|
|
|
2.9
|
|
|
4%
|
|
2.8
|
|
||||
Consulting, management, account fees
|
0.6
|
|
|
50%
|
|
0.4
|
|
|
1.9
|
|
|
36%
|
|
1.4
|
|
||||
Interest income
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
(100)%
|
|
0.1
|
|
||||
Total revenues
|
27.4
|
|
|
(5)%
|
|
28.9
|
|
|
88.2
|
|
|
3%
|
|
86.0
|
|
||||
Cost of sales of physical commodities
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
||||
Operating revenues
|
27.4
|
|
|
(5)%
|
|
28.9
|
|
|
88.2
|
|
|
3%
|
|
86.0
|
|
||||
Transaction-based clearing expenses
|
1.2
|
|
|
—%
|
|
1.2
|
|
|
3.9
|
|
|
11%
|
|
3.5
|
|
||||
Introducing broker commissions
|
0.1
|
|
|
(50)%
|
|
0.2
|
|
|
0.4
|
|
|
(33)%
|
|
0.6
|
|
||||
Interest expense
|
0.1
|
|
|
n/m
|
|
—
|
|
|
0.1
|
|
|
(50)%
|
|
0.2
|
|
||||
Net operating revenues
|
26.0
|
|
|
(5)%
|
|
27.5
|
|
|
83.8
|
|
|
3%
|
|
81.7
|
|
||||
Variable compensation and benefits
|
5.1
|
|
|
(2)%
|
|
5.2
|
|
|
16.5
|
|
|
8%
|
|
15.3
|
|
||||
Net contribution
|
20.9
|
|
|
(6)%
|
|
22.3
|
|
|
67.3
|
|
|
1%
|
|
66.4
|
|
||||
Fixed compensation and benefits
|
3.1
|
|
|
19%
|
|
2.6
|
|
|
8.7
|
|
|
23%
|
|
7.1
|
|
||||
Other fixed expenses
|
1.9
|
|
|
(30)%
|
|
2.7
|
|
|
6.6
|
|
|
(16)%
|
|
7.9
|
|
||||
Bad debts
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
||||
Total non-variable direct expenses
|
5.0
|
|
|
(6)%
|
|
5.3
|
|
|
15.3
|
|
|
2%
|
|
15.0
|
|
||||
Segment income
|
$
|
15.9
|
|
|
(6)%
|
|
$
|
17.0
|
|
|
$
|
52.0
|
|
|
1%
|
|
$
|
51.4
|
|
Selected data:
|
|
|
|
|
|
|
|
|
|||||||||||
Global Payments (# of payments, 000’s)
|
194.8
|
|
|
11%
|
|
174.9
|
|
|
592.9
|
|
|
18%
|
|
504.3
|
|
||||
Average revenue per payment
|
$
|
137.58
|
|
|
(16)%
|
|
$
|
162.95
|
|
|
$
|
145.56
|
|
|
(13)%
|
|
$
|
167.56
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||
(in millions)
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales of physical commodities
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
Principal gains, net
|
88.4
|
|
|
203%
|
|
29.2
|
|
|
197.8
|
|
|
108%
|
|
95.2
|
|
||||
Commission and clearing fees
|
13.6
|
|
|
97%
|
|
6.9
|
|
|
38.3
|
|
|
81%
|
|
21.2
|
|
||||
Consulting, management, and account fees
|
1.8
|
|
|
(14)%
|
|
2.1
|
|
|
5.6
|
|
|
2%
|
|
5.5
|
|
||||
Interest income
|
19.2
|
|
|
(47)%
|
|
36.0
|
|
|
80.3
|
|
|
(14)%
|
|
93.9
|
|
||||
Total revenues
|
123.0
|
|
|
66%
|
|
74.2
|
|
|
322.0
|
|
|
49%
|
|
215.8
|
|
||||
Cost of sales of physical commodities
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
||||
Operating revenues
|
123.0
|
|
|
66%
|
|
74.2
|
|
|
322.0
|
|
|
49%
|
|
215.8
|
|
||||
Transaction-based clearing expenses
|
16.5
|
|
|
57%
|
|
10.5
|
|
|
44.3
|
|
|
28%
|
|
34.7
|
|
||||
Introducing broker commissions
|
0.4
|
|
|
(50)%
|
|
0.8
|
|
|
1.3
|
|
|
(13)%
|
|
1.5
|
|
||||
Interest expense
|
9.0
|
|
|
(72)%
|
|
32.6
|
|
|
58.1
|
|
|
(32)%
|
|
85.2
|
|
||||
Net operating revenues
|
97.1
|
|
|
220%
|
|
30.3
|
|
|
218.3
|
|
|
131%
|
|
94.4
|
|
||||
Variable compensation and benefits
|
32.8
|
|
|
165%
|
|
12.4
|
|
|
76.1
|
|
|
120%
|
|
34.6
|
|
||||
Net contribution
|
64.3
|
|
|
259%
|
|
17.9
|
|
|
142.2
|
|
|
138%
|
|
59.8
|
|
||||
Fixed compensation and benefits
|
8.7
|
|
|
58%
|
|
5.5
|
|
|
23.0
|
|
|
65%
|
|
13.9
|
|
||||
Other fixed expenses
|
4.0
|
|
|
(5)%
|
|
4.2
|
|
|
12.5
|
|
|
26%
|
|
9.9
|
|
||||
Bad debts
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—%
|
|
—
|
|
||||
Total non-variable direct expenses
|
12.7
|
|
|
31%
|
|
9.7
|
|
|
35.5
|
|
|
49%
|
|
23.8
|
|
||||
Segment income
|
$
|
51.6
|
|
|
529%
|
|
$
|
8.2
|
|
|
$
|
106.7
|
|
|
196%
|
|
$
|
36.0
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||
(in millions)
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sales of physical commodities
|
$
|
7,944.5
|
|
|
5%
|
|
$
|
7,599.3
|
|
|
$
|
38,939.4
|
|
|
87%
|
|
$
|
20,824.6
|
|
Principal gains, net
|
13.5
|
|
|
1,025%
|
|
1.2
|
|
|
22.7
|
|
|
92%
|
|
11.8
|
|
||||
Commission and clearing fees
|
—
|
|
|
n/m
|
|
—
|
|
|
—
|
|
|
n/m
|
|
0.1
|
|
||||
Consulting, management, and account fees
|
0.6
|
|
|
(33)%
|
|
0.9
|
|
|
1.8
|
|
|
(10)%
|
|
2.0
|
|
||||
Interest income
|
1.4
|
|
|
(52)%
|
|
2.9
|
|
|
7.9
|
|
|
(7)%
|
|
8.5
|
|
||||
Total revenues
|
7,960.0
|
|
|
5%
|
|
7,604.3
|
|
|
38,971.8
|
|
|
87%
|
|
20,847.0
|
|
||||
Cost of sales of physical commodities
|
7,920.8
|
|
|
4%
|
|
7,589.6
|
|
|
38,888.5
|
|
|
87%
|
|
20,798.2
|
|
||||
Operating revenues
|
39.2
|
|
|
167%
|
|
14.7
|
|
|
83.3
|
|
|
71%
|
|
48.8
|
|
||||
Transaction-based clearing expenses
|
0.6
|
|
|
50%
|
|
0.4
|
|
|
1.6
|
|
|
78%
|
|
0.9
|
|
||||
Introducing broker commissions
|
0.3
|
|
|
200%
|
|
0.1
|
|
|
0.8
|
|
|
300%
|
|
0.2
|
|
||||
Interest expense
|
2.6
|
|
|
(42)%
|
|
4.5
|
|
|
9.8
|
|
|
(22)%
|
|
12.5
|
|
||||
Net operating revenues
|
35.7
|
|
|
268%
|
|
9.7
|
|
|
71.1
|
|
|
102%
|
|
35.2
|
|
||||
Variable compensation and benefits
|
11.5
|
|
|
248%
|
|
3.3
|
|
|
21.8
|
|
|
114%
|
|
10.2
|
|
||||
Net contribution
|
24.2
|
|
|
278%
|
|
6.4
|
|
|
49.3
|
|
|
97%
|
|
25.0
|
|
||||
Fixed compensation and benefits
|
2.5
|
|
|
9%
|
|
2.3
|
|
|
7.1
|
|
|
4%
|
|
6.8
|
|
||||
Other fixed expenses
|
1.4
|
|
|
17%
|
|
1.2
|
|
|
4.5
|
|
|
15%
|
|
3.9
|
|
||||
Bad debts
|
—
|
|
|
(100)%
|
|
0.1
|
|
|
0.2
|
|
|
—%
|
|
0.2
|
|
||||
Recovery of bad debt on physical coal
|
—
|
|
|
n/m
|
|
—
|
|
|
—
|
|
|
n/m
|
|
(2.4
|
)
|
||||
Total non-variable direct expenses
|
3.9
|
|
|
8%
|
|
3.6
|
|
|
11.8
|
|
|
39%
|
|
8.5
|
|
||||
Segment income
|
$
|
20.3
|
|
|
625%
|
|
$
|
2.8
|
|
|
$
|
37.5
|
|
|
127%
|
|
$
|
16.5
|
|
|
Precious Metals
|
||||||||||||||||||
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||
($ in millions, except revenue per ounce traded)
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||
Total revenues
|
$
|
7,623.0
|
|
|
4%
|
|
$
|
7,331.7
|
|
|
$
|
37,984.3
|
|
|
90%
|
|
$
|
19,963.5
|
|
Cost of sales of physical commodities
|
7,591.4
|
|
|
4%
|
|
7,324.2
|
|
|
37,925.6
|
|
|
90%
|
|
19,936.4
|
|
||||
Operating revenues
|
$
|
31.6
|
|
|
321%
|
|
$
|
7.5
|
|
|
$
|
58.7
|
|
|
117%
|
|
$
|
27.1
|
|
Selected data:
|
|
|
|
|
|
|
|
|
|||||||||||
Gold equivalent ounces traded (000’s)
|
101,596.1
|
|
|
13%
|
|
90,283.7
|
|
|
330,429.8
|
|
|
26%
|
|
263,224.4
|
|
||||
Average revenue per ounce traded
|
$
|
0.31
|
|
|
288%
|
|
$
|
0.08
|
|
|
$
|
0.18
|
|
|
80%
|
|
$
|
0.10
|
|
|
Physical Ag & Energy
|
||||||||||||||||||
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||
(in millions)
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||
Total revenues
|
$
|
337.0
|
|
|
24%
|
|
$
|
272.6
|
|
|
$
|
987.5
|
|
|
12%
|
|
$
|
883.5
|
|
Cost of sales of physical commodities
|
329.4
|
|
|
24%
|
|
265.4
|
|
|
962.9
|
|
|
12%
|
|
861.8
|
|
||||
Operating revenues
|
$
|
7.6
|
|
|
6%
|
|
$
|
7.2
|
|
|
$
|
24.6
|
|
|
13%
|
|
$
|
21.7
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||||||
(in millions)
|
2020
|
|
% Change
|
|
2019
|
|
2020
|
|
% Change
|
|
2019
|
||||||||
Sales of physical commodities
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
$
|
—
|
|
Principal gains, net
|
4.9
|
|
|
32%
|
|
3.7
|
|
|
17.6
|
|
|
15%
|
|
15.3
|
|
||||
Commission and clearing fees
|
52.0
|
|
|
(2)%
|
|
53.1
|
|
|
168.5
|
|
|
1%
|
|
166.6
|
|
||||
Consulting, management, and account fees
|
10.3
|
|
|
(20)%
|
|
12.8
|
|
|
38.4
|
|
|
5%
|
|
36.5
|
|
||||
Interest income
|
1.7
|
|
|
(82)%
|
|
9.3
|
|
|
16.8
|
|
|
(43)%
|
|
29.3
|
|
||||
Total revenues
|
68.9
|
|
|
(13)%
|
|
78.9
|
|
|
241.3
|
|
|
(3)%
|
|
247.7
|
|
||||
Cost of physical commodities sold
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
||||
Operating revenues
|
68.9
|
|
|
(13)%
|
|
78.9
|
|
|
241.3
|
|
|
(3)%
|
|
247.7
|
|
||||
Transaction-based clearing expenses
|
27.2
|
|
|
19%
|
|
22.8
|
|
|
85.5
|
|
|
21%
|
|
70.4
|
|
||||
Introducing broker commissions
|
18.4
|
|
|
(8)%
|
|
19.9
|
|
|
60.2
|
|
|
(8)%
|
|
65.4
|
|
||||
Interest expense
|
0.5
|
|
|
(86)%
|
|
3.7
|
|
|
5.7
|
|
|
(48)%
|
|
10.9
|
|
||||
Net operating revenues
|
22.8
|
|
|
(30)%
|
|
32.5
|
|
|
89.9
|
|
|
(11)%
|
|
101.0
|
|
||||
Variable compensation and benefits
|
4.6
|
|
|
(39)%
|
|
7.5
|
|
|
18.3
|
|
|
(20)%
|
|
22.9
|
|
||||
Net contribution
|
18.2
|
|
|
(27)%
|
|
25.0
|
|
|
71.6
|
|
|
(8)%
|
|
78.1
|
|
||||
Fixed compensation and benefits
|
5.8
|
|
|
—%
|
|
5.8
|
|
|
17.3
|
|
|
5%
|
|
16.5
|
|
||||
Other fixed expenses
|
6.3
|
|
|
(14)%
|
|
7.3
|
|
|
20.5
|
|
|
1%
|
|
20.3
|
|
||||
Bad debts
|
2.4
|
|
|
n/m
|
|
—
|
|
|
2.7
|
|
|
2,600%
|
|
0.1
|
|
||||
Total non-variable direct expenses
|
14.5
|
|
|
11%
|
|
13.1
|
|
|
40.5
|
|
|
10%
|
|
36.9
|
|
||||
Segment income
|
$
|
3.7
|
|
|
(69)%
|
|
$
|
11.9
|
|
|
$
|
31.1
|
|
|
(25)%
|
|
$
|
41.2
|
|
•
|
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 $379.0 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 2, 2021, under which our subsidiary, StoneX Financial Inc. 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 January 29, 2022, under which our subsidiary, FCStone Merchant Services, LLC is entitled to borrow up to $260.0 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 September 14, 2020, under which our subsidiary, StoneX Financial Ltd, is entitled to borrow up to $25.0 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 StoneX Financial Inc. may borrow up to $75.0 million, collateralized by commodities 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 StoneX Financial Inc. 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 StoneX Financial Inc. 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.
|
•
|
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.
|
Period
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Program
|
|
Maximum Number of Shares Remaining to be Purchased Under the Program
|
|||||
April 1, 2020 to April 30, 2020
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
1,200,000
|
|
May 1, 2020 to May 31, 2020
|
—
|
|
|
—
|
|
|
—
|
|
|
1,200,000
|
|
|
June 1, 2020 to June 30, 2020
|
—
|
|
|
—
|
|
|
—
|
|
|
1,200,000
|
|
|
Total
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
4.1
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101.INS
|
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
|
|
|
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
Date:
|
August 6, 2020
|
|
/s/ Sean M. O’Connor
|
|
|
|
|
Sean M. O’Connor
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
Date:
|
August 6, 2020
|
|
/s/ William J. Dunaway
|
|
|
|
|
William J. Dunaway
|
|
|
|
|
Chief Financial Officer
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of StoneX Group Inc.;
|
2.
|
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;
|
3.
|
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;
|
4.
|
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:
|
(a)
|
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;
|
(b)
|
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;
|
(c)
|
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
|
(d)
|
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
|
5.
|
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):
|
(a)
|
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
|
(b)
|
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.
|
Date:
|
August 6, 2020
|
/s/ SEAN M. O’CONNOR
|
Sean M. O’Connor
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of StoneX Group Inc.;
|
2.
|
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;
|
3.
|
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;
|
4.
|
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:
|
5.
|
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):
|
(a)
|
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
|
(b)
|
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.
|
Date:
|
August 6, 2020
|
/s/ WILLIAM J. DUNAWAY
|
William J. Dunaway
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ SEAN M. O’CONNOR
|
Sean M. O’Connor
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ WILLIAM J. DUNAWAY
|
William J. Dunaway
|
Chief Financial Officer
|