INTL FCStone Eyes Controlling Interest in Cleartrade Exchange

Cleartrade Exchange (CLTX), a relatively new player on the exchange landscape after receiving its authorization from the Monetary Authority of Singapore in 2011, has been searching for a partner for the past three months. INTL FCStone will acquire control of voting rights immediately, and the right to acquire up to 90 percent of equity interest over the next five years. CLTX will remain an autonomous registered exchange for the time being, and terms of the deal were not disclosed.

"CLTX has rapidly succeeded in becoming an important execution venue for commodity derivatives. We are very impressed with their technical, operational and regulatory implementations undertaken to meet the demands of the changes in global derivatives regulations driven by Dodd-Frank and other G20 mandates," says Scott Branch, president at INTL FCStone. "We are looking to leverage our broad global customer base, focused on commercial hedgers, and our expertise in commodities to support the expansion of the Cleartrade Platform. We look forward to working with Richard Baker and his team to realize CLTX's significant potential."