Good day, ladies and gentlemen, and welcome to INTL FCStone’s Third 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 be given at that time. [Operator Instructions] As a reminder, today’s conference is being recorded. I would now like to turn the call over to Mr. Bill Dunaway, CFO. Sir, you may begin.

Good morning. My name is Bill Dunaway. Welcome to our earnings conference call for our fiscal third quarter ended June 30, 2018. After the market closed yesterday, we issued a press release reporting our results for our third fiscal quarter of 2018. This release is made available on our website at www.intlfcstone.com as well as a slide presentation, which we will refer to on this call, in our discussion of our quarterly and year-to-date results. You’ll need to sign on to the live webcast in order to view the presentation. 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 the 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 Sections 27A of the Securities Act of 1933 and Section 21E 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 be 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 CEO. Sean O’Connor: Thanks, Bill. Good morning,…

Thank you, Sean. I’ll be referring to slides and the information we have made available as part of the webcast, specifically starting with slide number 3, which shows our performance over the last five fiscal quarters. The top of slide number 3 is a chart, which depicts our reported net income, earnings per share and ROE over the last five quarters, while the bottom of the slide shows the same metrics on an adjusted basis, removing the effect of tax reform and the previously disclosed bad debt on physical coal. There is no difference between our GAAP net income and adjusted net income for the third quarter of fiscal 2018. The bottom graph shows the strong growth we’ve seen over the last five quarters and our core operating results with the near doubling of our earnings per share and ROE for the current period in excess of our internal target of 15%. Our net income was $39.8 million and earnings per share were $2.06 for the fiscal year-to-date period, while our adjusted net income was $60.9 million with an earnings per share of $3.18 for the fiscal year-to-date period. Moving on to slide number 4, which represents a bridge between operating revenues for the third quarter of last year and the current year fiscal third quarter. Operating revenues were $259.8 million in the current period, up $62.2 million, or 31% versus the prior year. As shown, all operating segments showed revenue growth over the prior year, led by our Clearing and Execution Services segment, which added $23.5 million or 36% in operating revenues, driven by a $22.1 million increase in exchange-traded revenues. This growth in exchange-traded revenues were driven by both a 55% increase in customer volumes as a result of both market volatility and the onboarding of new customers…

[Operator Instructions] And our first question comes from the line of Bartley Cohen from – as a Private Investor.

Hi, guys. Congrats on the quarter. Sean, my question was about Global Payments. I remember a few years ago, you were talking about like what inning you thought the business was in – as far as like the addressable market. Do you still feel like this is the early innings? Or do you think the addressable market has expanded? Sean O’Connor: Yes. So I think over time what we’ve done is we’ve obviously created a broader and better network. We now cover almost every market. We do it with scalable technology so we can handle more volumes. So a lot of that work has been put in place. We now have the largest banks in the world on our platform. The real kind of scalability of this relates to how banks are actually doing the business. So if you – we sat with a couple of banks, and we said to them, okay, for these 130 markets tell us all the payments you’re sending to those markets, and how you are doing it. And what we find is most of them are doing what we don’t want them to do, which is they send dollars to a correspondent bank, the correspondent bank charges them a opaque and very wide spread. And they have no control over the pricing they give to their clients. And about even now, given where we are with all these banks and trying to educate them, like 5% of the payments are being done the way we want. So if you have to look at that in terms of addressable market, there’s still 95% of the payments we think these banks are doing in a very inefficient way. So our challenge is try to get the banks to understand, pull this sort of curtain away, show them exactly kind of way they’re losing money. I think that banks have a deep desire to control the pricing to their clients because they’re on the hook. And if we can get them to change how they have done business for these decades, I think our addressable market is huge. But it’s an education process, it takes a long time. The easy thing for us is to pick up the business where they’re aware of the inefficiencies in the market, and they’re looking for us to help them. The longer-term challenge is can we change these banks and how they do the bulk of their business. And we slowly making incremental inroads into there, but it’s a big addressable market for us.

Thanks. That’s it. Congrats, again on the quarter. Sean O’Connor: Thanks very much. Appreciate it.

And our next question comes from the line of Russell Mollen from Nine Ten Capital. You may begin.

Hey, guys. How are you doing? Sean O’Connor: Hey Russell, good, and you?

Good. Can you guys describe a little bit – I mean, you had a few comments there. But on the restructuring and the expansion of the metals through. Maybe just kind of some more tangible examples, kind of, what you’re – what you saw you didn’t have, or what you’re trying to change and capture today that you didn’t have before? Sean O’Connor: Yes. I think, in general, what we’re trying to do across all of our businesses is make sure that we are thinking about changing, being innovative, staying relevant to our customers, and, certainly, that’s a protection for us from being disintermediated, right? Our businesses in some parts are pretty old-fashioned kind of relationship call-up-on-the-phone type businesses or at least they were 10 years ago, and we all know that, that status quo is probably not going to stay exactly the way it is. So, honestly, we are looking at all of our businesses and trying to, sort of, challenge ourselves to get ourselves up the curve before someone else forces us to do that, which is not always easy, right? Because when things are going well, people’s view is, well, why should I change anything? So this isn’t necessarily isolated to Metals, but we have made some structural changes there. So I think on the LME slide, we had a great business, a team that had been together for a long time and have been doing business for same exact way for 20 years probably. And that’s good, I mean, they had a great business and great relationships, but we were trying to push hard and are pushing hard to make sure we think about how we can do the smartest. So we have put this business under the head of our Precious Metals business, who saw…

So on the Precious Metals side because some of the things you’re talking about in terms of that you’ve changed is that some of those electronic platforms, some of those announcements you had, you are pushing for more execution there? Sean O’Connor: So, I mean – this is going back now two years and I think we did have conversations on some of the calls about this. But we basically created two platforms that are sort of linked. The first one is just a straightforward execution platform. And we now find we have some of the larger volumes on our execution platform of anyone and we put this in front of our clients that we used to actually calling their desk up, getting a trader to answer the phone and execute a price. At one point, we had 12 traders in the business. I think now we have two or three traders in the business. Our volumes have probably gone up tenfold. We’ve narrowed in pricing, which customers like, and we’ve become the go-to place to find price discovery and just executing trades in the gold market. And then on the Physical side, which is an even more integrated market, it was sort of a call-around market. It was whole bunch of guys who would call each other, what gold do you have? Where’s the inventory? What’s it going to cost to send it to the location I want? And it was just a call-around market, it was crazy. So we created a platform where everyone posted the inventory, everyone can see it. We sort of act as the middleman so no one knows who the party is but they can see what’s out there. It automatically prices everything to the location you wanted to, including the freights and the cost of transport and stuff. And it’s just made it easy. Someone can just click on our platform, they can instantaneously see where all the metal in the world is. And instead of calling 10 people and spending three hours, you can do it quickly. And people like that, and no one ever thought of it. And it’s not – I mean, this isn’t rocket science. This is just simplifying workflows and making it easy for people to deal with us. And fundamentally, in the modern sort of Google, Facebook, Amazon world, people just want ease of use. They don’t have to pick up the phone to 10 people. So those are the kind of things we’ve done. So please don’t think that we’re creating some black box or some rocket science here. This is all just a question of slow incremental change for the better and not revolutionary change, right?

Yes. Got it. Thanks. Sean O’Connor: Okay.

[Operator Instructions] Sean O’Connor: All right. It looks like we don’t have any more questions. So thanks, everyone, for your attendance and enjoy the rest of summer. And we will be speaking to you in December next, I guess. Thank you.

Ladies and gentlemen, thank you for participating in today’s conference. This does conclude the program. And you may all disconnect. Everyone, have a great day.