Introducing Brokers (or IB’s) are brokers or firms that have customers interested in OTC instruments, but who cannot provide these products directly. Rather than being limited to offering exchange-traded products only, IBs can take advantage of StoneX Markets’ swap desk capabilities. We earn our IB customers with our high-touch customer service capabilities, strong balance sheet, onboarding ability and SXM’s initial and variation margin thresholds (for customers who qualify for them), which can act as financing.
Introducing brokers can refer customers to SXM, which can provide them with access to OTC instruments. These instruments can enable those customers to:
- Hedge their market price risk with OTC Lookalike options and swaps.
- Take advantage of SXM’s initial and variation margin thresholds (if they qualify for them), which in some cases can act as financing.
- Find hedging strategies via OTC customizable options that enable them to manage their production with specific contract sizes, expiration dates and strike months.