StoneX launches SOFR swaps to help FX clients transition from LIBOR
“Interest rate risks, both short-term and long-term, have not abated. StoneX Pro’s SOFR trading capabilities will offer our clients an extra layer of near-term protections should circumstances in the market change.”
StoneX has introduced new capabilities for its OTC trading clients to facilitate the transition to SOFR from LIBOR, including SOFR caps and floors available in StoneX Pro, StoneX’s flagship FX institutional trading platform.
The new SOFR swap trading capabilities address the Fed’s Alternative Reference Rates Committee’s recent decision to require financial institutions to implement SOFR as the primary benchmark for overnight rates.
“SOFR caps & floors have become the preferred hedging solution for interest rate risk”
Eric Donovan, Global Head of Institutional FX, StoneX, commented: “StoneX is committed to delivering the products and services our clients need to stay ahead of the changing environment for interest rate derivatives. SOFR caps & floors have become the preferred hedging solution for interest rate risk as the LIBOR to SOFR transition continues amidst a higher rate environment. These new capabilities in StoneX Pro will allow for a transition to the SOFR benchmark through a solution that is seamless, integrated, and fully compliant.”
Josh Cannington, Vice President, Interest Rate Derivatives, commented: “Interest rate risks, both short-term and long-term, have not abated. StoneX Pro’s SOFR trading capabilities will offer our clients an extra layer of near-term protections should circumstances in the market change.”
StoneX offers FX and CFD services to banks, brokers, and prop traders
StoneX Pro is a comprehensive suite of institutional FX and CFD services offered by subsidiaries of StoneX Group Inc. Its comprehensive FX offering includes all major and emerging market pairs, as well as forwards, options, NDFs, and physical settlement services.
The CFD product line includes streaming liquidity across 12,000 products across FX, indices, metals, commodities, and equities.
StoneX Pro offers trading platforms and API’s for clients across the institutional spectrum including banks, alternative asset firms, corporates, family offices, retail brokers, and proprietary traders. StoneX acts as the intermediary between clients and Tier 1 financial institutions and provides them with institutional grade services normally only available to the largest of firms.
StoneX, through its Broker-Dealer division of StoneX Financial Inc. offers financial institutions a full range of end-to-end trading solutions across all asset classes.