INTL FCStone Financial Selects StoneCastle as its Exclusive Insured Cash Sweep Technology Solution
– Fortune 500 subsidiary enhances its clearing platform with comprehensive insured cash sweep solution from StoneCastle
– New program provides millions of dollars in FDIC insurance coverage
NEW YORK, Jan. 4, 2018 /PRNewswire/ — StoneCastle Insured Cash Sweep, LLC, a subsidiary of StoneCastle Cash Management, LLC (“StoneCastle”) announced today that it has been selected to be the exclusive cash management provider for the broker-dealer division of INTL FCStone Financial Inc.’s (“IFCF”) correspondent clearing business. IFCF is a New York-based independent clearing firm providing execution, clearing, and custody solutions for broker-dealers, investment advisors, and foreign financial institutions. The two companies completed the successful implementation in mid-December in conjunction with integration through Thomson Reuters BETA, IFCF’s trade processing provider. IFCF is a subsidiary of INTL FCStone Inc., a Fortune 500 financial services organization; ticker symbol “INTL”.
According to Crane Data, FDIC insured cash accounts have grown to more than a trillion dollar market over the past several years and are frequently favored by brokerage and advisory clients compared to other cash vehicles, such as money market mutual funds. As investors attain greater wealth, they are constantly seeking differentiated ways to minimize their risk, particularly with their cash holdings. “IFCF services an incredibly diverse client base with widely different investment needs,” said Steve zum Tobel, Managing Director of Correspondent Clearing. “A constant between all of them is the need for a cash management platform that enhances safety and liquidity while having the ability to uniquely grow with their businesses. StoneCastle’s multi-million dollar insured sweep offering uniquely meets this need and further differentiates the value IFCF affords to its correspondent and advisory clients.”
“Since the acquisition of Sterne, Agee & Leach, Inc., we have worked to add new products, services, and capabilities in an effort to provide our correspondents the best available brokerage and wealth management tools,” said Roger Shaffer, Managing Director of Correspondent Clearing. “Our partnership with StoneCastle enables both US and non-US investors to obtain FDIC insurance benefits on cash balances up to $5,000,000 while earning a competitive return.”
“The vision of the INTL FCStone organization is impressive,” said Dan Farrell, Chief Executive Officer of StoneCastle Cash Management, LLC. “We are honored to be a partner in this vision and have our differentiated cash solutions, extensive bank network, and leading technology directly help contribute to IFCF’s growth and the value offered to its clients.”
StoneCastle provides insured deposit solutions to institutional clients, family offices, brokerages, clearing firms, registered investment advisers, and other financial intermediaries. Following its entry into the insured sweep space in early 2017, StoneCastle is successfully fulfilling its objective to be a differentiated force in the cash space for the benefit of its clients. The IFCF deal is StoneCastle’s second announced deal in the past two months.
About StoneCastle Insured Cash Sweep, LLC
StoneCastle Insured Cash Sweep, LLC, a subsidiary of StoneCastle Cash Management, LLC, is a leading administrator of insured cash solutions for many of the world’s largest institutions and family offices. Today, the firm extends the reach of its operational and technology platforms through a daily cash sweep solution made available to brokerages, registered investment advisers (RIAs), trusts, and other programs offered through financial intermediaries and wealth managers. StoneCastle is backed by the strength and stability of world class partners, CIBC and Charlesbank Capital Partners.
About INTL FCStone Financial Inc.
INTL FCStone Financial Inc.’s broker-dealer division is registered with the Securities Exchange Commission and member FINRA/SIPC, and provides execution, clearing and custody solutions for US Broker-Dealers, Investment Advisers and Foreign Financial Institutions. IFCF is a wholly owned subsidiary of INTL FCStone Inc., a diversified financial services organization providing clearing and execution, risk management and advisory services, and market intelligence across asset classes and markets around the world. A Fortune 500 financial services organization with a 100-year track record, INTL FCStone Inc. is listed on the NASDAQ under the ticker symbol “INTL”.