StoneX Group Inc. (SNEX), the global financial services network, announced its fiscal year 2024 Q3 financial results on 6 August 2024. The network’s quarterly operating revenue was up 18%, as was its net operating revenue of $468.5m, which increased by 7%.
FINRA Fine Puts A Damper On StoneX FY Q3 Results
The company’s recent acquisitions include CDI Société Cotonnière de Distribution and Gain Capital Holdings. According to StoneX’s records, its non-taxable gain from the first acquisition was $23.5m for the nine months leading up to 30 June 2023. In its media statement, StoneX CEO Sean O’Connor said:
We achieved record net operating revenues this quarter as we experienced continued strong client engagement with increased volumes across nearly all of our operating segments and products despite low volatility and difficult trading conditions.
On 7 August 2024, FX News Group reported that StoneX had agreed to pay a $70,000 fine as part of its settlement with the Financial Industry Regulatory Authority (FINRA). The group’s regulatory issues originated from its actions as a market maker in over-the-counter (OTC) securities between June 2017 and March 2020.
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StoneX reportedly accessed and used OTC Link, an electronic messaging platform for the quoting and execution of OTCs. FINRA found that the company had failed to incorporate OTC Link with its order management system and, consequently, customers missed out on better OTC pricing. This violated FINRA rules 5310 and 2010.
As a result, the company did not have an adequate OTC monitoring system. Apart from the $70,000 fine, StoneX was censured and will also pay $27,074.36 (plus interest) in restitution.
