INTL FCStone bolsters new prime brokerage with outsourced trading acquisition

Fillmore Advisors will become part of the recently-established prime brokerage division at INTL FCStone.

US securities and commodities broker INTL FCStone has acquired an outsourced trading firm as it looks to cement its recently-established prime brokerage division.

INTL FCStone has acquired Fillmore Advisors, an independent outsourced trading and consultancy for institutional asset managers, which will become an extension of its new prime brokerage.

Fillmore Advisors consists of traders covering equities, foreign exchange, credit, rates and commodities trading for clients. The acquisition is subject to regulatory approval, and terms of the deal were not disclosed.

“The acquisition represents a tremendous opportunity to add a fast-growing leader in outsourced trading solutions as we continue to grow our division,” said Michael DeJarnette, co-head of prime brokerage at INTL FCStone. “This acquisition is an example of our strong commitment to continued innovation as we look to offer specialised services for hedge funds both domestically and abroad.”

INTL FCStone, known as a commodities and FX market maker, confirmed its plans to launch a US prime services division last year, offering trading, custody and clearing for US global equities, options, futures FX and fixed income.

The firm hired Douglas Nelson and brothers Michael and Nicholas DeJarnette from Cowen Group to lead the new business. Prior to INTL FCStone, Nelson and the DeJarnette brothers worked together at Convergex Prime Services since 2005. Earlier this year, INTL FCStone also made several senior appointments to the prime services business.  

“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,” Andrew Caplan, partner and CEO of Fillmore Advisors, commented.