INTL FCStone Inc. (NASDAQ:INTL) has reached an agreement to acquire GMP Securities LLC, a New York-headquartered institutional fixed income boutique specializing in emerging market debt, bonds, and asset-backed securities.
GMP Securities, formerly known as Miller Tabak Roberts Securities, is an SEC-registered broker dealer and also regulated by Wall Street self-regulator FINRA. It operates as a division of GMP International Holdings Corp., a wholly-owned subsidiary of Canada-based GMP Capital Inc, which acquired the company back in 2011.
Established in 1999, GMP Securities employs approximately 40 people across New York, Fort Lauderdale, Stamford, and Plano. In turn, INTL FCStone’s securities business has deep-rooted relationships with over 700 commercial and institutional customers throughout Europe, the Middle East and Africa.
Completion of the transaction is subject to a number of customary closing conditions, including regulatory approval.
OptionSellers investors seek to recoup losses from INTL FCStone
INTL FCStone Financial, through its subsidiaries, is a provider of execution, risk management and advisory services, market intelligence, and clearing services. The origins of the company date back to 1924, and currently serves institutional clients by providing them with access to blue chip international securities and ADRs.
During 2017 alone, the company was attributed a combined $29 billion in OTC trading, which accounted for 15 percent of all OTC value reported.
Last week, investors of commodities trading adviser OptionSellers.com filed loss recovery claims against INTL FCStone as recent volatility in U.S. energy markets caused their accounts to be liquidated.
According to the claims filed by the investors, the New York-based brokerage was asleep at the wheel when OptionSellers placed tens of millions of dollars of FCStone customer assets in a bet that natural gas prices wouldn’t rise – a high-risk bet.
Commenting on the acquisitions news, Sean O’Connor, CEO of INTL FCStone, said: “This acquisition fulfills a strategic objective for INTL by allowing us to expand our current fixed income product offering to our customers beyond Treasuries, Agencies, MBS, ABS, Municipal and Investment Grade bonds and into High Yield, Convertible and Emerging Market debt. Additionally, this acquisition brings us over 2,400 institutional customers who will benefit from our broader Securities product offering as well as other financial services products we provide including commodities, derivatives, FX and global payments.”