KANSAS CITY, MO., March 28 /CNW/ - An affiliate of FCStone Group, Inc., a
commodity risk management firm (NASDAQ: FCSX), recently was named the
electronic market maker for the Chicago Board of Trade (CBOT) ethanol futures
contract. FCStone Trading, LLC ("FCStone"), will provide liquidity and
continuous two-sided markets for the ethanol futures trading on the CBOT's
electronic trading platform.
"FCStone brings a wealth of experience and expertise to the CBOT's
ethanol complex which has become the benchmark for domestic ethanol prices,"
said CBOT Senior Vice President of Business Development Robert D. Ray. "Our
ethanol processors and investors have already noted the improved liquidity
that FCStone has brought to our market. We are committed to working with
FCStone and the rest of the biofuels industry to create new and innovative
trading opportunities for market participants."
According to FCStone Trading Senior Vice President Eric Bowles, "The
decision to become a market maker is driven by our commitment to support the
continued growth of the global renewable fuels industry. Increased liquidity
in the ethanol futures contract provides a transparent pricing benchmark for
managing production and marketing risks."
"FCStone is committed to providing the best possible solutions for our
customers' commodity risk management needs," said FCStone Group CEO Pete
Anderson. "We are exemplifying our customer commitment by establishing the
market with the CBOT ethanol contract, and by supporting over-the-counter
(OTC) Ethanol Calendar Swaps."
Ray pointed out that FCStone was instrumental in initiating the CBOT
Ethanol Calendar Swap. FCStone's recent offering of two products--forward and
previous month calendar swaps based on the price of CBOT Ethanol futures
contracts--are the first exchange-cleared OTC products to be specifically
tailored for use in the ethanol industry. The on-exchange clearing of OTC
contracts has been ongoing in other industries and is now available to serve
customers in the ethanol industry. The daily mark to market and credit
risk/counterparty mitigation have been strong points in favor of using the
Ethanol OTC Calendar Swaps.
"The mission of the companies making up FCStone Group is and has always
been to add to the bottom line of our customers. The addition of these
commodity risk management instruments at the CBOT gives our customers
additional tools from which to manage their ethanol price risk in the most
effective and efficient way possible," said Anderson.
ABOUT FCSTONE GROUP, INC.
FCStone Group, Inc., along with its affiliates, is an integrated
commodity risk management company providing risk management consulting and
transaction execution services to commercial commodity intermediaries,
end-users and producers. The firm assists primarily middle market customers in
optimizing their profit margins and mitigating exposure to commodity price
risk. In addition to risk management consulting services, FCStone, LLC,
operates one of the leading independent clearing and execution platforms for
exchange-traded futures and options contracts. FCStone Group, Inc., serves
more than 7,500 customers and in the 12 months ended November 30, 2006,
executed 50.2 million derivative contracts in the exchange-traded and
over-the-counter markets. In addition to renewable fuels, the FCStone Group
companies work in all the major commodity areas including agriculture, energy,
foods, forestry, and currency exchange. Headquartered in the Midwest, it has
offices located throughout the world and is a clearing member of all major
North American Futures exchanges. FCStone Group, Inc., trades on the NASDAQ
Global Select Market under the symbol "FCSX."
For further information:
For further information: FCStone Group, Inc. Larry Kembell, 816-457-6229