MF Global UK agrees to sell metals division to INTL FCStone unit

By Caroline Salls

Pittsburgh, Nov. 28 - MF Global UK Ltd. has agreed to sell its metals division to INTL FCStone Inc. wholly owned subsidiary INTL FCStone (Europe) Ltd., according to an INTL FCStone news release.

As part of the transaction, INTL FCStone (Europe) has received approval from the London Metal Exchange to upgrade its LME Category Two membership to an LME Category One ring dealing membership.

According to the release, the metals division is a leading LME ring dealing member providing execution and clearing of LME products and OTC products to assist commercial customers in hedging their price risk in metals markets.

The metals division also serves institutional investors and financial services firms in the Americas, Europe and the Asia-Pacific region, INTL FCStone said in the release.

The company said metals division head Fred Demler will assume leadership of INTL FCStone's global metals LME futures and derivatives business.

"Our existing significant physical metals, structured OTC products and corporate finance advisory services combined with the LME capabilities and relationships should create a unique metals franchise," INTL FCStone chief executive officer Sean O'Connor said in the release.

MF Global Holdings Ltd., a commodity and derivatives broker based in New York, filed for bankruptcy on Oct. 31 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 11-15059.

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