Macquarie Group To Acquire US Futures Execution And Clearing Business, Shatkin Arbor, Inc.

19 August 2008

CHICAGO, August 19, 2008 —  Macquarie Group (Macquarie), a global provider of banking, financial, advisory, investment and funds management services, today announced it has entered into an asset purchase agreement to acquire the business and assets of US futures clearing firm, Shatkin Arbor, Inc. (Shatkin Arbor). Shatkin Arbor will be integrated into Macquarie’s existing US futures business, Macquarie Futures USA Inc. (Macquarie Futures), significantly expanding Macquarie Futures’ capabilities by enabling it to directly execute and clear trades at both the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT). Financial details of the transaction were not disclosed. 

Headquartered in Chicago, Shatkin Arbor is a well-established US Futures Commission Merchant (FCM) with full clearing memberships at both the CBOT and CME. The primary business of Shatkin Arbor is the provision of futures execution and clearing services to local members and select introducing brokers. Shatkin Arbor was established over 40 years ago by two prominent futures industry participants, Henry Shatkin and Patrick Arbor, and has a strong track record of experience.

Macquarie Futures USA Inc. (Macquarie Futures) is based in New York and executes and clears futures contracts on major futures exchanges in the United States and around the world through Macquarie affiliates. Macquarie Futures is registered with the Commodity Futures Trading Commission as a Futures Commission Merchant (FCM). Its clients include commodity and energy producers and consumers as well as US based and international fund managers. 

Bill Marynissen, Executive Director and Global Head of Macquarie’s futures business, said, “Shatkin Arbor complements Macquarie’s current US futures operations extremely well, giving us a strong and proven clearing platform for our growing efforts in the region. Adding this experienced team to our business will significantly expand our operations by enabling Macquarie Futures to directly execute and clear trades on both the CME and CBOT markets for our clients.” 

Shatkin Arbor’s team of 25 staff will become employees of Macquarie Futures, including senior management, who will occupy key leadership roles within Macquarie Futures. Macquarie Futures will represent a core part of Macquarie’s global futures business and will be led by Joseph Mazurek, Managing Director and President of Macquarie Futures.

Commenting on the plans for the combined business, Joseph Mazurek said, “We see significant opportunities for the combined business to deliver more as an integrated platform. In particular, we think clients will be attracted to an execution and clearing platform that can also leverage the strength of a major financial institution for their trading needs.

“Areas of opportunity that we see for the integrated business include growth in institutional sales, expansion of middle market introducing broker relationships including retail customers and leveraging of the Macquarie global brand and business,” added Mr. Mazurek. “We look forward to partnering with Shatkin Arbor’s management, including Senior Vice President and Branch Office Manager Robert Shatkin, to continue growing the business while maintaining the excellent relationships they have developed with clients, counterparties and regulators.”

Patrick Arbor, Co-founder of Shatkin Arbor, said, "Macquarie has a long established presence in the futures industry around the world and a clear, strategic vision for their business in the US. We are excited that by leveraging the Shatkin Arbor platform, the combined business will offer more to clients and build and expand the business Henry and I started over 40 years ago.”

“As markets and exchanges become increasingly global, it is important that our business model evolve to keep up with these trends.  We are delighted that Macquarie recognizes the strength of our local platform and will help us to further develop the business and provide new and expanded product offerings to our clients,” added Henry Shatkin, Chief Executive Officer of Shatkin Arbor.

Following a transition period, the business will be re-branded and operate as Macquarie Futures USA Inc., with employees of Shatkin Arbor becoming employees of Macquarie.

The acquisition is not material to Macquarie Bank Limited or Macquarie Group Limited from a capital perspective.

About Macquarie
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Macquarie Group Limited is listed in Australia (ASX:MQG) and is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorized deposit taker. Macquarie’s activities are subject to regulation by over 100 agencies around the world.

Found in 1969, Macquarie operates in more than 25 countries and employs more than 13,500 people. Assets under management total more than $US216 billion.

About Macquarie Futures
Macquarie Futures is a specialist Global Futures Broker with operations across the globe.  Macquarie has been providing global futures services to institutional clients for over 25 years and continues to expand its global business currently with operating businesses with 8 offices in 6 countries providing dedicated full global futures market coverage.

Macquarie has experienced significant growth and expansion in its futures business over the past decade, taking it from an originally Australian-based specialist to a pre-eminent global futures operation.  Macquarie’s futures businesses have in excess of $US4.5 billion in client funds and employs over 120 staff worldwide.

About Shatkin Arbor, Inc.  
Shatkin Arbor, Inc., is a leading futures brokerage firm and premier clearing firm that offers comprehensive trading tools, outstanding professional services and 24-hour live support for all classes of traders. From novice traders to sophisticated hedge funds, Shatkin Arbor is committed to providing the best possible trading experience for every client. Co-founded over 40 years ago by two prominent futures industry participants, Henry Shatkin and Patrick Arbor, Shatkin Arbor, Inc., embodies the camaraderie and professional edge that is synonymous with the Chicago futures markets. For more information, visit: www.shatkinarbor.com