INTL FCStone strikes deal with Cleartrade
INTL FCStone strikes deal to gain ownership of Cleartrade over five-year period
NEW YORK (AP) -- Commodity risk management firm and securities broker INTL FCStone Inc. said Tuesday that it has reached a deal to acquire majority ownership of Cleartrade Exchange over a five-year period.
The financial terms were not disclosed.
Cleartrade, or CLTX, is a market for commodity futures and over-the-counter cleared derivatives trading that is based in Singapore. It provides traders, brokers and hedge funds with an electronic order book and block trade facility, trade processing, reporting and processing to multiple clearing houses.
It began operations in 2011 and now has more than 30 trading members.
INTL FCStone said the deal will help expand the global reach of both companies.
Under the agreement, the New York company will acquire immediate voting control and the right to acquire up to 90 percent of equity interest in Cleartrade over a five-year period.
Completion of this transaction is subject to final stages of due diligence and fulfillment of certain conditions.
Shares of INTL FCStone added 25 cents to $16.53 in midday trading Tuesday. The lightly-traded stock has traded between $16.11 and $21.03 in the past 52 weeks.
