Disclaimer: The INTL FCStone Inc. group of companies conducts a global full-service, integrated commodities, futures, investment banking, derivatives trading and risk-management business. Our research department may

provide research, market commentary and general or specific analyses as may be requested from time to time by our clients, wh ich may reflect opinions that are contrary to the illustrations in this presentation. INTL FC

Stone Inc. has adopted policies designed to preserve the independence of our research analysts. These policies prohibit non -research personnel from influencing research personnel to issue favorable research or offer to

change a research rating or price target as consideration for an inducement to obtain business or other compensation. The INT L FCStone proprietary trading desks and investing businesses may make investment decisions

that are inconsistent with the materials in this document. INTL FCStone Inc. and its affiliates, officers, directors, and emp loyees, will from time to time have long or short positions in, act as principal in, and buy or sell

instruments the derivatives that are identical or economically related to the derivatives referred to in this document.

This presentation is not an offer to sell or a solicitation of an offer to buy any derivative or security and is not a commitment to enter into any derivative or other transaction, and does not create a binding

obligation on INTL FCStone Inc. or any of its affiliates. This presentation does not constitute investment research or a per sonal recommendation or take into account the particular investment objectives, financial

situations, or needs of individual clients or recipients of this material. You are directed to seek professional and tax adv ice. Past performance is not a guide to future performance, future returns are not guaranteed,

and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. Risks presented by commodities, futures (and

options thereon), swaps and other OTC products (“derivatives”) depend upon the terms of the transaction and your circumstance s. Options are not suitable for all investors. Option buyers may lose their entire

investment. Option sellers may have an unlimited loss. Certain derivative contracts contain a variety of selling prices, knock out prices and accumulation periods and require an understanding of the contract’s specific

pricing mechanisms before you enter into such contracts. Derivatives generally involve credit risk, market risk, liquidity r isk, funding risk, operational risk, legal and documentation risk, regulatory and tax risk. You

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your exposure to the risk associated with a transaction prior to its scheduled termination date.

In addition to the general risks associated with derivatives, highly customized derivative transactions may increase liquidit y risk and introduce other significant risks. Leveraged transactions may create exposure to

substantial gains or losses in response to relatively small market fluctuations. INTL FCStone Inc. and its affiliates may fr om time to time take proprietary positions and make a market in instruments identical or

economically related to derivative transactions entered into with you, or may have an investment banking or other commercial relationship with and access to information from the issuer(s) of securities, financial

instruments or other interests underlying derivative transactions entered into with you. INTL FCStone Inc. and its affiliates may choose to hedge their obligations by trading in derivatives. The costs associated with

hedging activity could affect the market value of, or the price at which we would be willing to enter into a transaction. Fu rther, we may internalize and match order flow or route it externally for execution. If we

choose to match orders internally, our compensation is greater than if we execute the order externally. INTL FCStone Inc. an d its affiliates make no representation, warranty or guarantee as to, and shall not be

responsible for, the accuracy or completeness of the information contained in this presentation and have no obligation to upd ate the information.

Any illustrations provided are strictly hypothetical and no representation is being made that any person will, or is likely t o achieve profits or losses similar to those examples. You are advised to undertake an

independent review of the potential legal, tax, regulatory and accounting implications of any derivatives transaction to dete rmine whether derivatives or any particular structure would be suitable for you, and if

necessary seek professional advice. Derivatives give rise to substantial risk and are not suitable for all recipients of this presentation.

This presentation has been prepared solely for private informational purposes for the pre-qualified eligible contract participants to whom it was distributed. The INTL FC Stone Inc. group of companies act solely in the

capacity of an arm’s length counterparty and not in the capacity of your financial adviser or fiduciary. Prior to undertaking any transaction, you should discuss with your tax or other adviser how a particular

transaction may affect you. Any opinions expressed are subject to change without notice and certain information is based upo n information from third party sources which we have not independently verified.

No part of this presentation may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of INTL FCStone Inc.

February 2014

• INTL FCStone Inc. is a publicly traded commodity risk management

firm (NASDAQ- INTL). INTL FCStone Ltd (IFL) is a wholly owned

subsidiary of INTL FCStone Inc.

• IFL provides advisory and treasury services to banks, charitable,

governmental and non-governmental organizations, universities,

and multinational corporations in developing countries.

• IFL maintains local bank accounts (nostros) in over 100 countries

enabling us to make and receive payments in a very efficient and

secure manner.

• IFL maintains relationships with a vast network of financial

institutions in each local market, enabling us to capture highly

competitive market rates.

• IFL provides 24-hour service to our clients with offices in New York,

London, and Singapore

Our Company

INTL FCStone Inc. www.intlfcstone.com NASDAQ “INTL”

Global Payments: Beyond the G10

Change Needed?

• 925 members of the Institute of Directors were interviewed

– 66% said they had had issues with late payments of invoices

– 47% said their main reason for late payment was the excessively bureaucratic payments system

– 28% said they were compelled to delay a payments to their own suppliers, showing that one failure can affect the whole supply chain

The 5 Topics to

Think About

• Contracting for Local Currency – Deliver USD or Local Currency?

• Competitive Bidding – Are you getting the best rate? How do you know?

• “Just in time” funding – Are you holding large account balances overseas?

• Compliance – Are you up to speed with the local regulations?

• Electronic Platforms – What's out there and what is best for your organization?

Contracting for Local

Currency

• Hard Currency vs. Local Currency – Calculate the true cost of the FX

• “Captive Client” – “Rate of the Day”

• Control of Fees – Upfront costs

• Accounting advantages – No access or insufficient funds

Case #1

Headquarters

$1,000,000 to Nigeria

Local office receives Naira (NGN)

Analysis

• No rate comparison for the conversion

– Best rate?

– Captive client

– Additional Fees

Competitive Bidding

• Multiple exchange rates – Best Practice

– Phone, Email, Electronic Platform (single and multi)

• Local Office/HQ Bank – Check both

• Foreign Exchange Payment Specialists – Minimize Correspondents

– Exotic Payments

Case #2

• Firm sends monthly funding of $500,000 to Guatemala

• Finance manager withdraws the USD locally

• Manager converts USD to GTQ at local exchange house

Analysis

• Compliance risk – Who is the exchange house?

– Ownership

– Registration

• Misappropriation of funds – Fraud

– Corruption

• The firm is ultimately responsible for the conversion. If

regulations are breached, the organization could face

costly legal repercussions.

Just In Time Funding

• What do we mean? – Holding large sums in accounts overseas

– Opportunities to fund more frequently

• Safety/Security – Mitigation of country and credit risk

• Avoidance of Fees – Some payment providers will not charge a wire fee

Case #3

Headquarters

Monthly $400,000

Sudan Local Office

Locally converts part to SDG

Holds balance in USD

Analysis

• Volatility of markets

– Value lost on funds

– Country risk

– Credit risk

• Centralization of funding at HQ can mitigate

risks

Compliance Risk

• Importance – Growing worldwide

• Monitoring & Control – Dodd Frank

• Confidence in Your Processor – OFAC Screening – Aware of local regulations – Legitimate payment network

• SWIFT • Central bank approved local transfer network

• Ultimate responsibility can lie with HQ – Know all regulations prior to sending to avoid delays

Case #4

• Organization to pay service provider in Brazil

• Expenses total 2,000,000 BRL

• Organization sends USD to local office account

• Market rate fluctuates

• Bank converts USD to BRL at current rate

• Converted amount does not cover expenses

Analysis

• Accounting transparency

– Must wait for rate to be reported by the

overseas entity

– True costs are not known up front

– Full amount of local currency may not be

received

– HQ send more funds potentially resulting in

more fees and further “approximation” risk.

(Multiple rates quoted)

Electronic Platforms

• What to Look for – Built in features – Live Rates – Delivery Instruction Guidance – Web-based

• Information Consolidation – Reporting features

• Ease of Use • Customization

– Batch upload – Accounting integration

Case #5

• Company must pay invoices in China (CNY)

• The payment instructions for the recipient were incorrect

• Funds are rejected by the beneficiary’s bank and unapplied to account

• Recipient cannot claim the funds

• Company is uninformed

Analysis

• Multiple intermediaries cause inefficiency

– Investigation of failed payments, delays..

– Ability to recall or amend failed payments in

timely manner

– Loss of value on eventually returned funds

– Knowing costs upfront is important – rates of

exchange as well as operational

INTL FCStone Inc. www.intlfcstone.com NASDAQ “INTL”

The State of Payments

Way Forward

– In the last 5 years there has been $5.2B invested across 811 deals in payments technology (CB Insights)*

– Software companies who make payments or vice versa?

– In House Bank (IHBs) solutions – Digital/Virtual Currencies

• Send money to people in countries without a modern banking system

• Bring international remittance costs down • Reduce the chances of identity theft and related frauds • Securely exchange something of value • Push Banks to “up their game” for new payments technology

*CB INSIGHTS https://www.cbinsights.com/blog/payments-tech-venture-capital-report-2014/

Regulatory

• Ben Lawsky, Superintendent of NY State Department of Financial Services – “Our statutory and regulatory schemes for money transmitters were

written long before there was an Internet – let alone virtual currencies – and were in need of updating”

– “The revised regulation will offer a two-year transitional BitLicense, which may be issued to those firms who are unable to satisfy all of the requirements of a full license, and will be tailored to startups and small businesses. That transitional BitLicense will help provide start-ups an on-ramp as they build up their operations.”

– The proposal envisions “additional flexibility for virtual currency startups to innovate, while at the same time maintaining our commitment to protecting consumers and rooting out illicit activity”

BUT….

– SILK Road / Underground Ebay

– BitCoin declined over 78% • Worst performing “currency” of 2014 (more than RUB)

• Mt Gox exchange hacked, $460M vanished

– Xoom says $30.8M transferred fraudulently to overseas accounts

– Work in progress

– Challenges with upgrading real-time payments system • Cost of development and implementation/integration

• Accounting, risk, fraud will need to be enhanced to match the speed of real-time clearing and settlement

• 24/7 operational/technical support

• Regulatory requirements to be addressed(OFAC,AML,BSA)

Contact Us

Thiago Vieira 212-379-5491

thiago.vieira@intlfcstone.com

• “INTL FCStone Ltd (IFL) is a wholly owned subsidiary of INTL FCStone Inc (“INTL”). IFL is registered in England and Wales (5616586). IFL is authorised & regulated by the Financial Conduct Authority under the Payment Services Regulations 2009 [FRN 446717] for the provision of payment services. INTL acts as Agent for IFL in New York. INTL Asia Pte Ltd acts as agent for IFL in Singapore. Any examples given in this presentation are provided for illustrative purposes only and INTL Global Currencies Ltd assumes no liability for the use of any information contained herein.”

Any examples given in this presentation are provided for illustrative purposes only and INTL FCStone Ltd assumes no liability for the use of any information contained herein.

Greg Leven 816-410-3286

greg.leven@intlfcstone.com