INTL FCStone Inc. (NASDAQ: INTL) announced its Broker-Dealer Division of its wholly owned subsidiary, INTL FCStone Financial Inc., 2016 trading statistics. INTL FCStone Financial disclosed that in 2016 it added 62% of all new American Depositary Receipts (ADRs) to the OTC Market.
INTL FCStone Financial is a full-service market maker that provides institutional clients with access to blue chip international securities and ADRs, proprietary technology, and expertise in more than 45 global markets. The Company leverages the strong capital base of INTL FCStone Inc. to provide block-sized liquidity both during and after local market hours.
In 2016, INTL FCStone Financial was responsible for OTC trades totaling approximately $26.6 billion, representing 18% of all OTC value reported. This marks an increase of ~27% over 2015. The Company saw ADR value traded increase 29% as the total ADR market contracted 5%, according to the Finra ORF.
INTL FCStone Financial was a leading market maker by value for approximately 2,500 securities in 2016, including Nestle SA, Daimler AG, and Bayer AG, as well as other tier-one OTC-listed Shares. The Company provided liquidity to the market at an approximate 3:1 ratio during 2016.
Jacob Rappaport, Managing Director and Head of Equity Capital Markets at INTL FCStone Financial, commented:
We are very proud of our team for being the top-ranked OTC market maker for the second consecutive year. I believe this to be indicative of the quality of our service, expertise and integral liquidity that we provide to the market. We remain committed to our clients, and helping them grow via our best-in-class execution solutions.
INTL FCStone Financial also bolstered the market by adding 15% of new foreign securities and 62% of new ADRs to the OTC Marketplace, according to OTC Markets Group Inc. The Company adds these securities based directly on client demand and to promote competitive real-time quoting, as these international equities must be traded in a FINRA- and SEC-regulated Alternative Trading System once listed.
INTL FCStone Financial has been responsible for over 50% of new foreign securities and ADRs added to the OTC Marketplace since 2011. Specific securities added by the Company in 2016 include Deutsche Boerse AG, Volvo AB, and China Gas Holdings ltd.
Rappaport concluded:
We once again added a large number of foreign securities and ADRs to the OTC Marketplace in 2016 in response to our client’s needs for more intraday liquidity in international equities. Additionally, bringing these securities to a regulated venue enhances competition, price clarity and compliance initiatives. We look forward to ongoing growth in 2017 and to furthering our mission to make international markets more accessible.