We bring direct access to our OTC markets

Delivering transparency to our OTC markets offering over 300 products.

StoneX Markets’ innovative digital platform and tools provide robust risk measurement, in-depth scenario analysis and quick execution – enabling you to quickly pivot from idea to analysis to action.

Technology you can trust, backed by experience

StoneX Markets LLC (SXM) has been helping commodity producers and consumers hedge their price risk with over the counter solutions tailored to meet their specific risk management needs for more than 25 years. In fact, we were the very first non-bank provisionally registered as a swaps dealer with the CFTC.

But we’re much more than just a swaps dealer. Today, we leverage our experience, expertise and a customer-centric approach to provide consistent, high-quality OTC execution, market analysis, and risk management advisory services to our customers. We provide deep liquidity as a result of being able to warehouse our own risk. We understand the regulatory environment and make our best effort to shield our customers from any associated risk.

SXM Technology tools and features

One of the most comprehensive and powerful tools on the market for developing and executing risk-based OTC hedging strategies, including tools such as:

SPOC

A state-of-the-art online calculator for structured options strategies allowing users to customize inputs and account for customer profile, trade timing, commodity type, aggressiveness of strategy, accumulation level, and more.

iMatch

An electronic swaps execution tool that allows for immediate execution of "lookalike" swaps – iMatch functions within a trader’s existing platform using OTC symbology and allows all swaps to be instantly enriched with one action.

Options Calculator

Options Calculator allows users to calculate prices and develop effective strategies, with Call/Put, Collar, and 3-Way strategies offered as prepopulated options, for more than 200 commodities traded on the OTC markets.

Strategy Option Solver

Strategy Option Solver supports users in developing their own options strategy using multiple inputs and customization that takes into account the four most popular types of options strategies.

Accumulator Manager

A post-trade tool that allows you to see your hedging profile by remaining hedge as well as average hedge price, down to the sub-account level. Create and export detailed client reports, send white labeled reports to individuals, and much more.

What are the benefits of OTC products?

Markets same or better than exchange

As a market making group reliant on brokers for flow, StoneX Markets, LLC (“SXM”) understands that transparency on pricing construction is imperative.

What fundamentally constitutes SXM’s levels is directly derived from what is currently moving the market, therefore SXM’s pricing is generally competitive with the exchange. In addition, SXM may be able to offer levels better than the exchange due to the liquidity of their own temporary position/book.

Confidentiality

OTC products are privately negotiated and bilaterally traded between two parties. For that reason, they are done with less disruption to the market, similar to block trades. All trades are reported to a Swap Data Repository as required by CFTC regulations. When/if this position is translated to an exchange-traded position with an EFRP and appears on the Daily Exchange Volume and Open Interest report the next day, after the trade has been executed.

Margin threshold*

SXM offers credit financing to Customers based on audited or attested financials. Financing on initial margin assists in covering the performance bond required of the hedge. Financing of variance margin or Marked-to-Market unrealized gains or losses, can assist customers in managing cash flow requirements surrounding daily market price fluctuations.

Lower margin requirements*

OTC products with SXM may allow margins lower than the exchange for customers that are “non-financial end users” under CFTC Margin Rules.* Because the CFTC requires strict qualifications to be eligible to trade OTC products, SXM has an exclusive understanding of our Customer’s risk and are able to be more lenient on margin requirements. SXM estimates that our margin requirements for non-financial end users can be near 80% of what the exchange holds.

Equal or better liquidity

SXM’s liquidity in OTC products allows us to assist customers in several ways. For example, we can extend positions beyond the limits of the contract months available on exchange-traded products. We can also assist in unwinding a position, should an exit become necessary. In such cases, we honor the marked to market level, shown on daily statements, as the exit point.

Customized derivatives to fit any market view

Customers can benefit from SXM's customizable derivatives, avoiding extra costs for unneeded coverage. We personalize strike prices, contract sizes, and expiry dates to suit individual needs. Our solutions offer hedging or speculative positions with sell/buy opportunities, fixed payouts, guaranteed quantities, no upfront costs, or a mix. These advantages balance risk through knock-out/knock-in and double-up mechanisms.

*Only available to certain qualified customers

SXM Technology showcase

StoneX: We open markets

Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.

Globality

With access to 36+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency

As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise

From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.

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Trading over-the-counter and exchange-traded derivatives is not suitable for all investors and involves substantial risk. StoneX Markets, LLC (“SXM”), a subsidiary of StoneX Group Inc., is a member of the National Futures Association and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. Any recipient of this material who wishes to express an interest in trading with SXM must first prequalify as an ECP, independently determine that derivatives are suitable for them and be accepted as a customer of SXM. Trading over-the-counter (“OTC”) products or “swaps” involves substantial risk of loss. This is not an offer to buy or sell any derivative. This material does not constitute investment research and does not take into account the particular investment objectives, financial situations, or needs of individual clients or recipients of this material. You are directed to seek independent investment and tax advice in connection with derivatives trading.

StoneX Financial Pte. Ltd. ("SFP") (Co. Reg. No 201130598R) is regulated by Monetary Authority of Singapore and holds a Capital Markets Services Licence (CMS100476) for Dealing in Securities, Collective Investment Schemes, Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading, is an Exempt Financial Advisor under the Financial Advisors Act 2001, and is a Major Payments Institution (PS20200625) under the Payment Services Act 2019 for Cross Border Money Transfers.

StoneX Financial (HK) Limited ("SHK") (CE No.: BCQ152) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts.

SFP acts as an appointed agent for SFL's payment services business.