This capability also creates “sticky” relationships with our clients. This is a unique product suite outside of the bulge-bracket banks, and it enables us to serve clients with bulge-bracket needs who have been cast aside or ignored by those institutions because of the regulatory burdens associated with serving them. In addition to execution of financial trades, we also provide vertically integrated post-trade settlement, clearing and custody services.
Today, operating under our new StoneX brand, we connect our clients to 36 derivatives exchanges, 175 foreign exchange markets, most global securities markets, and numerous bi-lateral liquidity venues.
We believe these rates make us a positive outlier in our industry. These growth rates remained in the mid-20% range despite headwinds resulting from the aftermath of the financial crisis and from becoming a larger and more mature business. Since 2003, our steady, determined and disciplined approach has helped us achieve our compounding strategy, with our book value and market value both increasing at a compound annual growth rate of 30%, off the back of revenues that grew at 33% C.A.G.R. When these regulatory and related capital pressures forced consolidation amongst smaller players, we became an opportunistic consolidator – and at valuations that allowed us to keep compounding our book value without the need to incur significant amounts of goodwill. In the face of a more rigorous and complex regulatory framework, we decided to invest in retaining our broad capabilities to better serve our clients, while many of our competitors withdrew from markets and narrowed their offerings. Ironically, the great financial crisis of 2008 created unexpected opportunities for us to accelerate our growth. This approach also enables us to create our own capital runway for growth – making us less dependent on the capital markets and allowing us to be flexible and opportunistic when we do seek capital. Since then, we have focused on harnessing the remarkable power of compounding on our shareholder capital to become a bigger and more valuable business. We started out with 10 people and less than $10 million in equity – but also with the conviction that relentless effort and execution, a clear focus on providing great service and value for our clients and a commitment to doing the right thing rather than the easy thing, would enable us to build a credible and recognized global financial franchise. VISION & PHILOSOPHY In 2003, the current management team reconfigured the company as a provider of financial services focused on under-served clients in niche markets.
0 kommentar(er)
