INTL FCStone‘s London-based subsidiary has joined Bloomberg’s electronic trading platform, FXGO, as a liquidity provider. INTL FCStone Ltd’s Foreign Exchange desk will now be able to offer market participants added efficiencies for FX trading and contribute executable pricing across a wide arsenal of currencies to meet corporate and institutional clients’ needs.
Bloomberg’s FXGO allows market participants to trade from a rich pool
of liquidity available through their Bloomberg Terminal, which also allows FXGO users to request access to INTL FCStone Ltd’s pricing via the {FXRE<GO>} directory.
Mike Wilkins, Head of FX Sales and Trading at INTL FCStone Ltd, said: “We are pleased to offer our services as a liquidity provider on FXGO and see market opportunity due to the global scope of Bloomberg and their multi-asset class of users connected to the platform. These users will now be able to leverage INTL FCStone Ltd’s expertise in efficiently pricing and executing FX transactions.”
The multi-bank FX trading platform FXGO enables price takers to execute foreign exchange transactions with their bank relationships and facilitates spot pricing execution.
INTL FCStone has most recently announced the acquisition of GAIN Capital in an all-cash transaction, representing approximately $236 million in equity value. INTL intends to make an offer at closing to repurchase GAIN’s $92 million convertible notes due 2022. GAIN’s $60 million convertible notes due 2020 will be repaid from GAIN’s cash on hand prior to closing. The transaction is expected to close in
mid-2020, subject to approval by GAIN’s stockholders, regulatory approvals and customary closing conditions. Sean O’Connor will
continue to lead the combined firm, while GAIN CEO Glenn Stevens will continue to lead the former GAIN business within INTL FCStone.
INTL FCStone’s CEO O’Connor said at the time: “This transaction is priced at a 12% premium to GAIN’s tangible book value and we anticipate will be immediately accretive to return on equity and earnings. We expect the cost and capital synergies of this merger will enable us to realize positive returns from the transaction even amid today’s multi-decade lows in volatility, and position us for significant upside as FX market conditions normalize. In the meantime, we believe the increase in diversity of our portfolio in terms of product and customer segments will reduce the overall volatility of our revenues.”
The COVID-19 pandemic crisis, however, may have caused quite a change in investors’ expectations regarding the deal. GAIN Capital’s stock is priced below $5.00 after losing about 20% since mid-March. Shares of INTL FCStone have lost 30% of its value since the pandemic scare.
