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Protection against interest rate volatility

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Access our deep liquidity and hedge against adverse rate movements with interest rate swaps from StoneX Markets.

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Why should I use interest rate swaps as a hedging solution?

If you are interested in adding interest rate swaps to your risk management strategy, contact our team today. And to further strengthen your risk management strategy, consider our comprehensive FX hedging solutions, catering to currency market dynamics. 
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Controls your exposure to fluctuating interest rates
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Customizable rate structure to craft a unique hedge
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Regardless of market conditions, StoneX’s offerings can help you mitigate risk
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Swaps help borrowers access competitive fixed rates from the market
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Hedge multiple loans at once
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Flexibility to keep a hedge in place during a refinance with a new lender

Offering SOFR for our clients

The end of LIBOR shouldn’t be a pain point for anyone looking for an interest rate hedging solution. We are pleased to offer our ability to use the Secured Overnight Funding Rate (SOFR) for clients interested in interest rate swap transactions and SOFR options.

  • Custom amortizing schedules
  • Term loan hedging out to 15 years
  • Operating line hedging out to 10 years
  • Market Intelligence services
  • Complete product training
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Confident execution

As the first non-bank company registered provisionally as a swap dealer with the Commodity Futures Trading Commission, StoneX Markets LLC (“SXM”) has the resources, deep expertise and liquidity that you need to seamlessly execute your positions with our in-house traders. We are backed by the resources of StoneX Group Inc. (NASDAQ: SNEX), a Fortune-100 financial services network that follows the highest standards of corporate governance, compliance and transparency.

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Why use SXM for interest rate swaps?

When you partner with SXM, you’ll have a team of dedicated professionals working on your behalf.
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Offer interest rate swaps to a much broader market than our banking counterparts.
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Eliminate the need for potentially costly intermediaries with straightforward solutions and transparent pricing.
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Facilitate hedging thats commercial end-users minimize interest rate risk and capital costs with ease.
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Access StoneX’s deep liquidity, and execute trades seamlessly with an institutional-level trade desk previously inaccessible to commercial borrowers.

Commercial borrower new to hedging interest rates

We will walk you through the mechanics and fully educate you on how these interest rate products products work, how they are used in real world situations, and various "what-if" scenarios to help improve your strategy.

Commercial borrower experienced in hedging interest rates

For more experienced commercial borrowers, our team can perform a deep dive into the current market environment and formulate the right hedging strategy for you to employ depending on unique market conditions. 

Commercial borrower with multiple lenders and a portfolio of loans (commercial real estate or commercial defeasance clients)

We can help create a hedging program that is tailored to a loan or bond portfolio that is dynamic enough to cover refinancing risk, while cognizant to various loan covenants.

Small bank or lender

We can develop several ways your clients can hedge interest rate risk, whether that is on a referral basis or an in-house swap program with the goal of retaining more clients and offer an advantage when competing for long-term fixed rate demand.

Interest rate hedging with StoneX Markets

Discover the importance of managing interest rate risk and the basic application of interest rate swaps in this short video from StoneX Markets.

Interest rate swaps Market Intelligence
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Discover more insights

Dive into comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.
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Markets covered

When it comes to market coverage, there are few financial organizations that can match the breadth of StoneX. Explore our markets below.

  • Commodities

    Commodities

    With commodity roots dating back a century, StoneX covers a range of innovative solutions for dairy, metals, grains, energy, plastics and more.
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    Foreign exchange

    We connect our clients to 185 foreign exchange markets and provide specialized payments solutions across 140+ currencies worldwide.
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    Securities

    Our securities offerings include a complete suite of equities trading services, fixed income, interest rate hedging solutions and more.
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FAQ

How do interest rate swaps work?

In a common interest rate example, a borrower will receive a floating rate payment in exchange for a fixed rate payment. The floating rate received from the swap offsets the floating rate paid on the loan thereby creating a simple, effective way to control exposure to rising rates.

Monthly settlement statements will show the floating rate received versus the fixed rate paid and net the difference. If the floating rate received is higher than the fixed rate paid, the borrower receives the difference and vice versa. If the maturity and dollar amount of the swap matches that of the loan, the borrower effectively converts their floating rate loan into a fixed rate, without changing the terms of the underlying loan.

What are interest rate swaps?

An interest rate swap is an agreement between two parties to exchange interest payments for a set length of time based on a specified dollar amount. In a single, upfront transaction, a borrower can customize the length of time and dollar amount to use in this exchange to craft a unique hedge to interest rate risk.

Do you offer SOFR?

Yes. With the much-anticipated transition away from LIBOR, we are now pleased to announce our ability to use the Secured Overnight Funding Rate (SOFR) for clients interested in swap transactions.

Do you offer interest rate options like caps and floors?

Yes, we offer interest rate options. Caps and floors, which are tradeable OTC contracts, can provide flexible, cost-efficient ways to control long-term borrowing costs. Similar to interest rate swaps, they are used to "lock in" the interest rate risk on floating rate loans.
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.

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    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.

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    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.

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    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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By submitting this form, you are sending StoneX Group Inc. and its subsidiaries your personal information to be used for marketing purposes. View our  Privacy notice  to learn more.

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.