In a defining moment for the global financial services landscape, StoneX Group Inc., a Fortune 100 company, has reached a definitive agreement to acquire R.J. O’Brien & Associates (RJO), the oldest and largest independent futures brokerage and clearing firm in the United States. This acquisition, valued at $900 million, is set to be a game-changer for the futures industry, marking a transformative shift in the market’s dynamics.
The deal is expected to close by the third quarter of 2025, subject to regulatory approvals and customary closing conditions. Once finalized, the combined entity will become one of the leading futures commission merchants (FCMs) in the U.S., with a significantly expanded global footprint, enhanced market access, and a stronger presence in both the physical and financial derivatives markets.
The Legacy of R.J. O’Brien
Founded in 1914, R.J. O’Brien & Associates has a storied history in the futures and derivatives industry. As the oldest futures brokerage and clearing firm in the United States, RJO has earned a reputation for providing exceptional service and risk management solutions to its clients. Over its more than a century of operations, RJO has built an extensive global network of clients, including over 75,000 accounts, supported by nearly 300 introducing brokers (IBs).
RJO’s legacy is one of continuous adaptation to the changing financial landscape, while maintaining its focus on prudent risk management and client relationships. With a presence in North America, Europe, Asia, and the Middle East, RJO’s international reach has been a key driver of its success, positioning it as a major player in the futures market.
RJO’s historical roots in the Chicago Mercantile Exchange, where it was one of the first clearing members, laid the groundwork for its long-standing leadership in the futures market. Its client base consists of institutional investors, individual traders, and commercial entities, with services spanning across listed derivatives, physical commodities, and risk management solutions.
StoneX Group: A Global Financial Powerhouse
StoneX Group Inc., formerly known as INTL FCStone, is a global financial services firm with operations across six continents. With a market capitalization of over $3.5 billion, StoneX is recognized as one of the leading derivatives clearing and brokerage firms in the world.
StoneX has consistently expanded its services, providing execution, clearing, risk management, and market intelligence to a diverse client base. The firm is known for its deep liquidity, innovative over-the-counter (OTC) hedging solutions, and cutting-edge risk management infrastructure. StoneX’s operations span across a wide range of asset classes, including equities, fixed income, commodities, and foreign exchange.
In recent years, StoneX has made strategic acquisitions to expand its capabilities and enhance its position as a global financial services leader. The company’s focus on client service, technology-driven solutions, and scalability has made it a trusted partner for institutional investors, commercial clients, and individual traders alike.
Strategic Rationale Behind the Acquisition
The acquisition of R.J. O’Brien by StoneX represents a transformative transaction that will significantly enhance StoneX’s position in the global derivatives market. This deal is particularly strategic for several reasons:
Expanding Client Network:
The merger will immediately expand StoneX’s client base by adding over 75,000 client accounts, including institutional investors, individual traders, and commercial clients. The combination of StoneX’s existing client relationships with RJO’s vast network of introducing brokers (IBs) creates significant cross-sell opportunities, particularly in OTC derivatives, physical commodities, and fixed income products.
Enhanced Global Reach:
RJO’s strong international presence in Europe, Asia, and the Middle East complements StoneX’s existing operations. By combining their global footprints, the two firms will be able to offer a broader range of services across key financial hubs, improving their ability to serve multinational clients and expand their footprint in global markets.
Industry-Leading Infrastructure:
StoneX’s market-leading liquidity, innovative risk management tools, and OTC hedging solutions, combined with RJO’s proven clearing capabilities, will create a powerful platform for providing comprehensive financial services to clients. The deal will also enhance StoneX’s role in the global financial market structure, solidifying its position as an integral player in the derivatives and clearing space.
Expansion into New Markets and Products:
RJO’s strengths in futures, clearing, and listed derivatives complement StoneX’s broad offerings in physical commodities, financing, and asset management. The merger will allow the combined entity to offer new products and services across asset classes, creating meaningful new trading and hedging opportunities for clients.
Efficiency Gains and Synergies:
The integration of operations between StoneX and RJO is expected to generate significant efficiencies. The deal is expected to unlock over $50 million in expense synergies, particularly through streamlined operations and integrated technology platforms. Additionally, the merger is projected to deliver at least $50 million in capital synergies, enhancing the combined firm’s overall financial performance.
The Financial Details of the Deal
The total equity value of the acquisition is approximately $900 million, which will be paid in a combination of cash and StoneX common stock. Specifically, StoneX will pay $625 million in cash and issue approximately 3.5 million shares of its common stock to RJO’s shareholders. This structure ensures that the O’Brien family, the majority owners of RJO, will become significant shareholders in the newly combined entity.
In addition to the purchase price, StoneX will assume up to $143 million of RJO’s existing debt as part of the transaction. To finance the cash portion of the deal, StoneX has secured fully committed bridge financing and plans to issue approximately $625 million in long-term debt before the closing date.
The transaction is expected to close in the second half of 2025, pending regulatory approvals from authorities such as the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA), and other relevant international regulators.
Leadership and Cultural Integration
An essential aspect of this deal is the alignment between the leadership teams and the shared values of the two firms. Both StoneX and RJO have a long history of client-centric service, a commitment to risk management, and an unwavering focus on providing value to their clients. This cultural alignment is crucial for the successful integration of the two firms.
Gerry Corcoran, RJO’s Chairman and CEO, will continue in a senior leadership role at StoneX following the completion of the transaction. Corcoran’s leadership has been instrumental in RJO’s growth, and his ongoing involvement ensures that the combined entity will continue to prioritize client relationships and prudent risk management practices.
Additionally, the O’Brien family, which has been involved with RJO for over a century, will remain closely tied to the business as significant shareholders in StoneX. The family’s commitment to the company’s values and long-term success will provide stability and continuity during the integration process.
Client Impact and Benefits
For RJO’s clients, this acquisition offers a host of benefits, including access to StoneX’s broad range of markets, products, and services. Clients will have access to enhanced liquidity, new trading opportunities, and innovative risk management solutions. StoneX’s extensive OTC hedging platform, physical commodities hedging capabilities, and deep liquidity across asset classes will provide RJO’s clients with even more robust tools for managing risk and executing trades.
Similarly, StoneX’s clients will benefit from RJO’s deep expertise in listed derivatives and clearing services. The addition of RJO’s introducing broker network will also provide StoneX with a more expansive client base, creating opportunities for cross-selling new products and services.
Importantly, both firms have committed to ensuring a seamless transition for their clients. RJO’s existing brokers and client support teams will remain in place, preserving the high level of service that RJO’s clients have come to expect.
Industry Implications: A New Era for Derivatives and Clearing
The acquisition of R.J. O’Brien by StoneX is not just a strategic move for the two companies but is also indicative of broader trends in the financial services industry. As regulatory pressures, technological advancements, and client demands continue to evolve, firms in the derivatives and clearing space must adapt or risk falling behind.
This merger signals a shift toward greater consolidation in the financial services industry, particularly among futures commission merchants (FCMs). As firms seek to enhance their market positions and expand their service offerings, larger players like StoneX will continue to acquire smaller firms with complementary strengths.
Furthermore, the transaction will strengthen the role of StoneX and RJO in the global financial market structure, providing the combined firm with enhanced market access, deeper liquidity, and a more comprehensive range of risk management tools. This will enable the firm to better serve clients in an increasingly complex and competitive market environment.
Frequently Asked Questions
What is the value of the acquisition between StoneX and R.J. O’Brien?
StoneX Group Inc. has agreed to acquire R.J. O’Brien for approximately $900 million. This acquisition will be paid in a combination of cash and StoneX common stock, along with the assumption of up to $143 million of R.J. O’Brien’s existing debt.
Why is StoneX acquiring R.J. O’Brien?
The acquisition allows StoneX to expand its position as a leading futures commission merchant (FCM) and strengthens its role in the global derivatives market. The merger combines StoneX’s extensive liquidity and risk management infrastructure with R.J. O’Brien’s established client network, clearing capabilities, and expertise in futures. Together, the two firms will offer enhanced products, services, and solutions to clients across asset classes.
When is the deal expected to close?
The transaction is expected to close in the second half of 2025, subject to regulatory approvals and customary closing conditions.
How will this acquisition affect R.J. O’Brien’s clients?
R.J. O’Brien’s clients will benefit from expanded market access and an enhanced range of products and services, including StoneX’s advanced over-the-counter (OTC) hedging platform, physical commodities hedging, and liquidity across fixed income products. Clients will continue to receive the same level of service they’ve come to expect, with the added benefit of access to more robust financial solutions.
Will the leadership teams from R.J. O’Brien and StoneX remain the same after the acquisition?
Yes, the leadership from R.J. O’Brien will continue to play a significant role in the combined entity. Gerry Corcoran, the Chairman and CEO of R.J. O’Brien, will stay on in a senior leadership role at StoneX, ensuring continuity in leadership and maintaining the values and client-focused culture that R.J. O’Brien has built over the years.
How will the acquisition benefit StoneX’s clients?
StoneX clients will gain access to R.J. O’Brien’s deep expertise in futures, clearing, and listed derivatives, as well as the opportunity to work with an expanded network of introducing brokers (IBs). The acquisition also creates new opportunities for cross-selling products, services, and solutions across a broader range of asset classes, providing clients with enhanced tools for risk management and trading.
What is the financial impact of the acquisition on StoneX?
The acquisition is expected to be accretive to StoneX’s earnings per share (EPS) and return on equity (ROE) over time. Additionally, StoneX anticipates generating over $50 million in expense synergies and unlocking at least $50 million in capital synergies through the consolidation of operations and integrated technology platforms.
What role will the O’Brien family play in the combined company?
The O’Brien family, which has been integral to R.J. O’Brien’s success for over a century, will remain as major shareholders in StoneX following the merger. This ensures continued alignment with the family’s values and a smooth transition for the company’s clients and employees.
How does the acquisition impact StoneX’s market position?
This acquisition solidifies StoneX’s position as one of the leading global derivatives clearing firms. By merging with R.J. O’Brien, StoneX enhances its role in the global financial market structure, offering institutional-grade execution, clearing, custody, and prime brokerage services across all asset classes. This combination expands the firm’s market access and liquidity, strengthening its competitive position in the industry.
Conclusion
The merger between StoneX and R.J. O’Brien is set to create a dominant player in the global derivatives and clearing market. With complementary strengths, shared values, and a commitment to client service, the combined entity is poised to lead the industry into a new era of growth and innovation.
As the transaction moves toward completion, all eyes will be on the integration process and the opportunities it presents for both firms, their clients, and their shareholders.
