StoneX Financial Inc., a subsidiary of StoneX Group Inc., which is the owner of Forex.com and City Index, has announced the expansion of its US fixed-income business by launching a trading offering and defeasance sales. This new capability signifies the continued growth of StoneX's fixed-income franchise and its dedication to providing clients with comprehensive securities services.

StoneX Financial Launches New Division

As part of the expansion, StoneX has hired three industry veterans from Truist Securities, namely Zach Frick, Les Jennette, and Joseph Forchione. The trio brings a combined experience of four decades in delivering commercial and municipal debt defeasance solutions. They will report to Hunter Hill, the Head of Agency Department Trading at StoneX, and will be based in Richmond where StoneX plans to open a new office to support the business and promote local growth.

Les Jennette and Zach Frick will join StoneX as Managing Directors and Co-Heads of Defeasance Sales & Trading. Joseph Forchione will join the company as an Executive Director.

The Broker Dealer Division of StoneX Financial Inc. (SFI) is an international financial services organization that offers clients a comprehensive range of securities solutions, customized to cater to the varied requirements of its diverse clientele. In its securities operations, StoneX Financial excels in providing swift, precise, and high-quality execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term for clients navigating challenging and less liquid markets.

According to Hunter Hill, the new executives have established relationships with municipal and commercial financial advisors and will "expand our underwriting of and distribution in Agency debentures and provide synergies with our rapid growth in Treasuries."

The fixed-income division of StoneX works closely with institutional clients across various sectors, including hedge funds, insurance companies, money managers, municipalities, banks, and more. The fixed-income team's desks offer consistent liquidity across an extensive range of fixed-income products, supported by the financial strength of StoneX Group Inc., the parent company.

Dull Retail Demand Pushes StoneX's Revenue Down

A month ago, StoneX Group published its financials for the first quarter of the fiscal year 2023, which ended on 31 December, reporting an operating revenue of $48.8 million from forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and contracts for differences (CFDs) contracts.

The firm emphasized a 27% drop in FX/CFD contracts RPM as a key factor in the substantial revenue decline within the division. Furthermore, the figures were negatively affected by reduced retail demand, while institutional FX contracts revenue on StoneX saw a 74% increase to $9.2 million, accompanied by a 24% surge in FX average daily volume (ADV).

Overall, the quarter between October and December turned out to be dull for the company's FX/CFDs business, as the operating revenue declined 32 percent year-over-year. Additionally, the figure tanked by more than 40 percent from Q4 FY22.

Three New Hires in 2023

StoneX Digital LLC, another subsidiary of Stonex Group focused on digital assets, has recently onboarded Matthew Ardizzone as the Managing Director of Digital Assets. He is based in New York and reports to the digital asset division's Chief Operating Officer, Brian Mulcahy.

In the meantime, StoneX Global Payments, a cross-border payments specialist, hired Edward Phelps as its Head of Sales Strategy. Phelps, who served SWIFT for over five and a half years, announced his new role in January.

The latest addition to the team of professionals at StoneX Group is Gary Clifford-Newman, the former Director of Prime Services Sales at Sova Capital, who joins as the Senior Vice President (SVP) of Prime Services Sales.