Good day ladies and gentlemen, and welcome to the INTL FCStone Fiscal Year 2015 First Quarter Earnings call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference may be recorded. I would now like to turn the conference over to our host of today’s call Mr. Bill Dunaway. You may begin.

Good morning. My name is Bill Dunaway, CFO of INTL FCStone. Welcome to our earnings conference call for the fiscal first quarter ending December 31, 2014. After the market closed yesterday, we issued a press release reporting our results for the fiscal first quarter. This release is available on our website at www.intlfcstone.com, as well as a slide presentation, which we will refer to on this call in our discussions of our quarterly results. You will need to sign on to the live webcast in order to view the presentation. Both the presentation and an archive of the webcast will also be available on our website after the call’s conclusion. Before getting underway, we’re required to advise you and all participants should note that the following discussion should be taken in conjunction with the most recent financial statements and notes thereto as well as the Form 10-Q filed with the SEC. This discussion may contain forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933 and Section 21(e) of the Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks and uncertainties which are detailed in our filings with the SEC. Although the company believes that its forward-looking statements are based upon reasonable assumptions regarding its business and future market conditions, there can no assurances that the company’s actual results will not differ materially from any results expressed or implied by the company’s forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Readers are cautioned that any forward-looking statements are not guarantees of future performance. With that, I’ll now turn the call over to Sean O’Connor, the company’s Chief Executive Officer. Sean O’Connor: Thanks Bill, and…

Thank you, Sean. I’d like to start my discussion with a review of the quarterly results, I’ll be referring to slides and the information we have made available as part of the webcast specifically starting with slide number three, which represents a bridge between the first quarter operating revenues from last year to the first quarter of 2015. As noted on the slide first quarter revenues were a record $137.5 million, which represents a 22% increase as compared to the $112.9 million in the first quarter of 2014. As Sean noted the biggest increase in operating revenues was in our core commercial hedging segment, which increased $22.8 million or 50% to a record $68.4 million in the first quarter. This was partially driven by 30% increase in exchange-traded revenues driven by improved customer activity in the domestic grain markets, as well as increase LME metals volume, driven by growth in Chinese customer volumes, new client on-boarding partially as a result of a competitor scaling back as well as increased market volatility. Also driving the increase in commercial heading revenues with an 89% increase in OTC commodity revenues, despite only have 2% increase in the number of OTC transactions. As the number of structured products traded the widening of spreads driven by market volatility drove increase in OTC revenues in both the agricultural and energy and renewable fuel space. The first quarter’s performance in the segment was also strong improvement over the immediately preceding quarter the fourth quarter of 2014, as revenues increased 15%. The second large increase was in our clearing and execution services segment, which increased by $3.7 million to $31.2 million driven by improved rate per contract earned in our exchange-traded business, improved performance in our customer foreign exchange prime brokerage business as a result of the increased…

[Operator Instructions]. Our question comes from John Dunn of Sidoti & Co. Your line is open.

Good morning, guys. Sean O’Connor: Hi, John are you?

Good morning.

Good, good. Good morning. Could you talk about in the global payments line sort of the trade-off between higher volumes and lower the addition of institutional clients and the lower prepayment and how much - the trade-off first of all how much that might go on with the on-boarding process? Thanks. Sean O’Connor: Okay. Well I think we have mentioned this a couple of times before that brining the banks for us, just to backup originally we were involved mainly in the NGO in the corporate sector and we are dealing with high value payments and the reason being is we had a very manual process and our cost of executing those transactions were pretty high. Over the last three years we have invested in technology, which has driven our processing cost down by orders of magnitude, I mean we are not fractions of what we were say three years ago. And we saw an opportunity to enter the bank market and typically the banks have many more payments orders of magnitude more volumes, but the payments can be much smaller in size. So the fact that we configured our processes internally allowed us to go after that very big opportunity and what we are starting to see now is the business mix changing in our business. Up until recently say a year ago about 70% of our revenues was driven from the sort of NGO and corporate sector and very little of which was coming from bank, but as we on-boarding the banks the volume is going up and the average ticket size is going down. We knew that would happen that’s exactly what we’ve decided to do the total aggregate revenue opportunity with the smaller payments is multiples of our previous revenue opportunities. So none of this is…

Got you. As you say you held the higher revenue level from last quarter, on the - I know you talked about last quarter’s higher bad debt provision the elevated level in 4Q, can you talk about I know it’s hard looking forward what sort of a run rate for that might be a natural run rate? Sean O’Connor: Honestly we sort of think that a natural bad debt run rate for us on an annual basis, probably is about $3 million to $6 million pre-tax right, I mean clearly we don’t want that to happen and we try very hard not for that happen, but the reality is we’re dealing with 12,000 companies around the world and some of those companies have liquidity problems and as much as we protect ourselves we may end up with more problems from time to time. So that’s kind of the run rate we have discussed with our Board that’s kind of how we have calibrated our risk management process. In the context of what we think we should be making in a normal sort of quarter that also seems to be about the right kind of number that shouldn’t be a material amount relative to our earnings and revenues. So that’s kind of our thinking on it, clearly what we tend to find is those bad debts don’t happen on a steady sort of drip basis you we tend to see a lot of it happen in one quarter and then nothing and that’s kind of our experience.

Got you. And then last one you’ve made quite a lot of progressive over the last couple quarters in ROE to 11% this quarter what get you to that 15% plus you think over the next year and a half let’s say? Sean O’Connor: Well I think as I have sort of said in my concluding remarks we definitely feel there is a trend developing for us, which is just us internally working better and cross selling our products we’re also seeing sort of more customers coming on board and of course sort of market condition seems to be normalizing. So it feels to us again as I said I don’t want to get into the could have, would have, should have kind of debate, but if we hadn’t have had this kind of hiccup in Argentina and maybe if we hadn’t have had sort of bad debt all coming last quarter, we would be at a run rate of about 13% ROE over the last six months. So we’re not that far away from 15% in a very bad interest rate environment and then of course we have GX Clarke coming on board as well as sort of investing our funds a little bit more intelligently both of those are incremental to the current trend line. So we’re starting to feel that we’re getting to a position where we might see us getting pretty close to that number over the next couple of quarters not necessarily having to do anything different than what we’re doing now.

Got you, thank you very much.

Our next question comes from Jeremy Hellman of Singular Research. Your line is open.

Hi, good morning everybody. Sean O’Connor: Hi Jeremy.

A question on GX Clarke, wondering what the overlap there is with their existing accounts relative to your pre-existing account base is there a significant overlap or and whether is or isn’t I just wanted to get a better sense on what your cross sell opportunity is there? Sean O’Connor: Okay, I would say as a pretty lump statement there is zero overlap at the moment with a customer base, which is good. So and in our current securities business we’ve really struggled to make significant in-road into the institutional market. We’ve never historically had relationships there we really deal with financial intermediaries, broker dealers and banks and so on. We’ve not wanted to invest in heavy research components to get our offering in there. We know we can add value to the institutional market it’s just been a struggle to get there. So having GX Clarke who has sort of deep and long relationships with institutional investments we think can only help the rest of our securities in future offerings making inroads there. We always a little bit we don’t place a huge synergy factor on deals I mean when we look at bringing businesses in we assume zero synergies to justify the transactions and I think it always takes longer and it’s harder than you think to cross sell. But I do think there are reasonably good opportunities for us to do that I have 700 Tier 1, Tier 2, Tier 3 institutional account many of those accounts somewhere in their organization are executing trades in our sweet spot, which is international securities, FX futures, and our job over the next year or two to make sure we mine that opportunity.

Great, thanks. I think would you think say it’s fair to characterize that as the larger Tier 1 institutions are going to be more likely to have multi asset class products under their umbrella while the smaller entities maybe more single asset class and so your opportunity is going to be at that larger Tier 1 end? Sean O’Connor: We never really do very well with the very large Tier 1 customers in any of our products. We have those customers and we’ve certain very well-known name customers that deal with us. But really our sweet spot is sort of the mid-size customer. So on the institutional side I suspect we may be better suited to the mid-size institutional investor who maybe has a couple different fund strategies under their umbrella and maybe they have an international fund or component for international securities and that’s where we will kind of get in there. So we obviously will try with the very large guys. But they tend to be so well covered by the Tier 1 banks that’s really hard for us to get in there.

Okay, thanks for that perspective. Sean O’Connor: Okay. Well, I don’t see any more questions on the screen. So we’d like to thank everyone for their participation. And we will be talking to you in about three months. Thank you.

Ladies and gentlemen this concludes today’s conference. Thank you for you participation. And have a wonderful day.