StoneX Group announced the successful completion of its acquisition of R.J. O’Brien (RJO), the oldest independent futures brokerage in the US. This makes StoneX the largest non-bank Futures Commission Merchant (FCM) in the US. Financial details were not disclosed in the announcement.
As a combined company, StoneX provides clients with access to nearly every major global derivatives exchange, and offers one of the most comprehensive multi-asset platforms in the industry. RJO’s clients can now access StoneX’s extensive range of markets, products, and services, including an expansive over-the-counter (OTC) hedging platform, physical commodity hedging, financing, and logistics services, as well as access to deep liquidity across fixed income products.
Through the integration of the two companies, StoneX has targeted significant revenue synergies via cross-sell opportunities in OTC derivatives, physical commodity trading, and fixed income products. StoneX has also targeted $50 million in expense savings and unlocking at least $50 million in capital synergies through operational consolidation. The acquisition, which expands StoneX’s client float by nearly $6 billion, is expected to enhance StoneX’s margins, return on equity and be accretive to earnings.
“This is a proud moment for both companies. With more than 200 years of combined futures and commodities expertise, we are strengthening StoneX’s role as an integral part of the global financial infrastructure,” said Sean O’Connor, executive vice chair of StoneX, in a statement. “This acquisition creates an unmatched knowledge base and reinforces our position as the counterparty of choice for clients.”
Philip Smith, chief executive officer of StoneX, said in a statement: “This transaction significantly expands our scale and increases our capabilities in several critical areas, including through a materially expanded client network and the addition of the leading introducing broker business. The combination of the companies’ leading technologies and tools, such as in OTC hedging, risk management, and trading execution and liquidity across multiple asset classes, will deliver clients important benefits. This transaction adds significant value for our clients and reinforces our ability to deliver across asset classes through every market cycle.”
Gerry Corcoran, chair and CEO of RJO, said in a statement: “Today marks an exciting milestone as RJO joins StoneX to deliver broader services and greater reach to our clients. We will continue to deliver the same level of outstanding and personalized service we’ve always provided – now on an even larger scale with more extensive resources. We couldn’t be more pleased about the cultural fit and strong client-first approach at StoneX that mirrors RJO’s philosophy.”