Marex Spectron to acquire RCG’s customer business

December 20, 2018

MAREX SPECTRON TO ACQUIRE CHICAGO-BASED FCM ROSENTHAL COLLINS GROUP’S CUSTOMER BUSINESS
– Retains RCG company name –
– Extends Marex Spectron’s capabilities to Chicago –

LONDON / CHICAGO, 20 December 2018 – Marex Spectron, one of the world’s largest commodities brokers, today announced that it has signed an agreement to acquire the customer business of Rosenthal Collins Group LLC (RCG®), a leading independent Futures Commission Merchant (FCM).

With 95-years of history, Chicago-based RCG is a highly respected firm with a deserved reputation for excellent client service and strong relationships. The business has an extensive client base and deep introducing broker network, with particular expertise in CME Group grains and livestock.

By acquiring the RCG FCM business, which is expected to complete in January 2019, Marex Spectron will maintain the RCG name and brand, gain 14,000 client accounts and balances, 150 associated staff and the Chicago headquarters. RCG has little overlap with Marex Spectron’s existing North American business, which operates out of New York, Calgary, Connecticut and Houston.

With Marex Spectron as the parent company, RCG clients will not only retain the excellent service model they currently enjoy, but will have access to new products and capabilities, including:

  • A more extensive global exchange network of cleared exchanges via Marex Spectron’s global network.
  • Direct access to London Metal Exchange, where Marex Spectron is a leading Category One member.
  • New proprietary technologies and tools, including Marex Spectron’s NEON trading and risk platform.
  • Marex Spectron’s extensive agricultural, metals and energy research.
  • Over-the-counter (OTC) hedging and investment products across all asset classes through Marex Solutions.
  • Marex Spectron’s larger balance sheet and investment grade rating.

    • For Marex Spectron, acquiring RCG:

  • Enhances Marex Spectron’s business, with the addition of RCG’s history, brand, expertise, large client base and extensive introducing broker network.
  • Expands Marex Spectron’s agriculture business, which is based in London and New York, and has historically been more focused on sugar, cocoa and coffee markets, with the addition of RCG’s presence in grains and livestock.
  • Expands Marex Spectron’s U.S. clearing offering to a broader client base.
  • Accelerates the growth of Marex Spectron’s North American business and provides a significant Chicago hub to support customers.

    • Upon completion of the deal, Scott Gordon, RCG’s Chairman and Chief Executive Officer, will become Vice Chairman of the new Marex Spectron’s RCG division, and Jason Manumaleuna, RCG’s President and Chief Financial Officer, will be appointed Chief Executive Officer of the Marex Spectron RCG division.

    Ian Lowitt, Marex Spectron Chief Executive, commented: “Acquiring the RCG FCM business is an exciting development that adds a very strong FCM brand to our business mix, establishes a foothold for Marex Spectron in the critical Chicago marketplace, and elevates our U.S. clearing to the top tier. It is a great fit with our existing agricultural business and fast-growing Marex Solutions’ customized hedging services.”

    Scott Gordon added: “Joining forces with Marex Spectron creates tremendous value for RCG’s clients and brokers. There is great chemistry between the two firms as we share similar philosophies and cultures. We will have access to new services and capabilities on a global scale with the outstanding products and infrastructure that will soon be integrated into our offering.”

    Barclays is acting as exclusive financial advisor to RCG on the sale to Marex Spectron.