As per the recent announcement made by the firm, New York-based NASDAQ listed financial service provider INTL FCStone has acquired Utah based outsourced trading firm Fillmore Advisors. Fillmore Advisors is one of the leading independent firms in the financial industry which specializes in outsourced trading solutions and is based out of Park City in Utah. The firm is made of traders who are highly experienced and knowledgeable on both buy & sell side trading activities on a wide array of global investent vehicles.
This new deal by NY-based INTL allows the firm to serve its institutional clients with better service offerings and benefits as owing to comprehensive product coverage offerings available at Fillmore Advisors on a wide range of assets covering equities, forex pairs, commodities, credits and rates. Post completion of the acquisition process, Fillmore Advisors is expected to serve as an extension of INTL FCStone’s prime brokerage service offerings.
While news of acquisition has been made public, the deal is still subject to regulatory approval and will only become effective when the deal is fully completed and closed. So far, no financial details of the deal (cost of acquisition) have been made public but the details on same are expected to be announced once the acquisition process is complete. This deal was influenced by the need to bolster FCStone’s newly established prime brokerage division as it currently lacks the strength to compete with market heavyweights currently active in the prime brokerage sector.
INTL FCStone ventured into prime brokerage market back in April 2019 targeting mutual and hedge fund operators. INTL’s prime brokerage business division currently offers product suites consisting of multi-asset prime brokerage execution, custody, self-clearing and outsourced trading services. The offer is made attractive owing to their flexible platform which helps improve effectiveness and efficiency of custody, trade execution and clearing service for the U.S.A. & global equities, options, futures, forex pairs and fixed income assets.
When speaking about this deal, Andrew Caplan, Partner and CEO, Fillmore Advisors, commented, “The Fillmore team is excited to join INTL FCStone and extend their global reach and best-in-class Prime Services platform to our client base. We will continue to partner with our existing clients and look forward to working with INTL’s management team to assist in the division’s continued growth and success in outsourced trading”. Commenting on the same topic, Michael DeJarnette, Managing Director and Co-Head, Prime Brokerage stated, “We’re thrilled to add the Fillmore Advisors team to our prime brokerage division. Outsourced trading is a rapidly growing segment of prime brokerage services, and the acquisition represents a tremendous opportunity to add a fast-growing leader in outsourced trading solutions as we continue to grow our division. This acquisition is an example of our strong commitment to continued innovation as we look to offer specialized services for hedge funds both domestically and abroad”.
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