StoneX Group Inc has added new features for its clients involved in over-the-counter (OTC) trading. These features make it easier for clients to switch from using LIBOR to SOFR.
The latest features now offered include the ability to implement limits and minimums on the Secured Overnight Financing Rate (SOFR), and they can be accessed through StoneX Pro, the main foreign exchange trading platform provided by StoneX.
In December 2022, the United States Federal Reserve Board decided, through the Alternative Reference Rates Committee, to make it mandatory for financial institutions to use SOFR as the main benchmark for overnight interest rates.
Global Head of Institutional FX, StoneX, Eric Donovan, said:
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.
Vice President, Interest Rate Derivatives, Josh Cannington, said:
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.
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