13F-HR/A: StoneX Amends Filings, Cites Reporting Errors
Amended Holdings Report
StoneX Group Inc. filed an amended 13F report to correct under-reported securities, shares, and market values from Q4 2021 through Q1 2025 due to internal errors.
Summary
- StoneX Group Inc. filed an Amendment Number 2 to its Form 13F-HR for the quarter ended June 30, 2024.
- The amendment was filed to restate and add new holdings entries, correcting under-reported total securities, shares, and market values in quarterly filings from Q4 2021 through Q1 2025.
- The internal review identified four main causes for the errors: inadvertently excluded market making accounts (Q4 2021 Q4 2024), a formula error in Excel using 'XLOOKUP' instead of 'SUMIF' (Q1 2022 Q4 2022), failure to properly implement SEC Rule 87 FR 38943 regarding rounding dollar values (Q4 2022 Q1 2025), and Excel scientific notation errors for CUSIPs with an 'E' (Q4 2021 Q1 2025).
- The total market value of holdings reported in this amended filing for the quarter ended June 30, 2024, is $213,844,899, across 376 entries.
- Other reporting managers included in this report are StoneX Advisors Inc., StoneX Financial Inc., and Trust Advisory Group, Ltd.
Sentiment
Score: 3
Explanation: The filing indicates significant historical under-reporting of holdings due to multiple internal operational and technical errors, which reflects poorly on internal controls and data accuracy, despite the proactive correction.
Negatives
- Quarterly filings from Q4 2021 through Q1 2025 under-reported total securities, shares, and market values.
- Three market making accounts were inadvertently excluded from filings between Q4 2021 and Q4 2024.
- A formula error in Excel (using 'XLOOKUP' instead of 'SUMIF') caused only the first instance of a CUSIP to be counted from Q1 2022 to Q4 2022.
- SEC Rule 87 FR 38943, requiring dollar values to be rounded to the nearest dollar, was not properly implemented from Q4 2022 to Q1 2025.
- CUSIPs with an 'E' were inadvertently converted into scientific notation in Excel, leading to misidentification of reportable securities between Q4 2021 and Q1 2025.
Risks
- Inadvertent exclusion of market making accounts from reporting.
- Operational risks associated with formula errors in data processing (e.g., Excel functionality misuse).
- Compliance risks due to failure to implement new regulatory rules (e.g., SEC Rule 87 FR 38943).
- Technical risks related to data handling and conversion errors (e.g., Excel scientific notation error affecting CUSIP identification).
Future Outlook
NA
Management Comments
- During an internal review of StoneX Group Inc.'s Section 13(f) reporting practices, we discovered the quarterly filings from Q4 2021 through Q1 2025 under-reported the total number of securities, shares, and market values.
Industry Context
NA
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Reporting Practice Review | An internal review of Section 13(f) reporting practices was conducted, leading to the discovery of under-reporting. | NA | Improved transparency and accuracy of historical holdings data, but highlights past control deficiencies. |
| Regulatory Compliance Failure | Failure to properly implement SEC Rule 87 FR 38943 regarding rounding of dollar values to the nearest dollar from Q4 2022 to Q1 2025. | NA | Led to inaccurate financial reporting and potential regulatory scrutiny. |
Stakeholder Impact
- Shareholders may have received inaccurate information regarding the company's holdings for an extended period, potentially impacting investment decisions.
- Regulatory bodies may increase scrutiny of the company's reporting practices due to the identified control weaknesses.
Key Dates
| Date | Description |
|---|---|
| Q4 2021 | Start of the period during which market making accounts were excluded and Excel scientific notation errors occurred. |
| Q1 2022 | Start of the period during which the Excel formula error (XLOOKUP instead of SUMIF) occurred. |
| Q4 2022 | Start of the period during which SEC Rule 87 FR 38943 was not properly implemented. |
| Q1 2025 | End of the period for under-reporting due to rule non-implementation and Excel scientific notation errors. |
| 06-30-2024 | Calendar year or quarter ended for the amended report. |
| 08-13-2025 | Date of signing the amended report by John Calvano. |
Recommendation
holdThe filing reveals a pattern of significant historical under-reporting of investment holdings due to multiple internal operational and technical errors spanning several quarters. While the company is proactively correcting these errors through this amendment, the underlying issues point to weaknesses in internal controls and data management. A seasoned investor would likely maintain a 'hold' position to observe how the company addresses these systemic issues and to assess any potential regulatory repercussions or further disclosures before making a definitive buy or sell decision.
Keywords
StoneX Group, SEC filing, 13F amendment, financial reporting errors, under-reporting, market making accounts, Excel errors, regulatory compliance, holdings report
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