Protection against interest rate volatility
Access our deep liquidity and hedge against adverse rate movements with interest rate swaps from StoneX Markets.
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
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.
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.
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What are interest rate swaps?
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.
Do you offer interest rate options like caps and floors?
Do you offer SOFR?
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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.