StoneX Markets LLC Launches Self-Service OTC Platform
May 19, 2021 - StoneX Markets LLC, ("StoneX Markets") a subsidiary of StoneX Group Inc. (Nasdaq: SNEX) ("the Company"), today announced that it has rolled out significant enhancements to its cutting edge self-service OTC Platforms for commodities trading. These enhancements, coupled with its integration into the StoneX Group ecosystem, collectively provides a single, digitized offering from which to fully access, manage and execute futures and options trading offered through the affiliated FCM, StoneX Financial Inc., as well as access to OTC markets offered through StoneX Markets LLC as a counterparty.
Through one innovative, digitized platform, clients can now receive market intelligence, risk measurement, scenario analysis and market execution all in one place.
MyStoneX provides access to the Company's industry leading Market Intelligence and real time access to futures & options and OTC trades aggregated in one place, as well as the ability to stress test portfolios and model out margin requirements. Additionally, MyStoneX provides an enhanced ability to model out desired risk management strategies and receive automated price indications.
StoneX Markets' self-service OTC Platform has been designed to provide direct access to our OTC markets, often considered opaque and complicated to novice investors, making our OTC markets fully accessible through a digital platform. This platform includes the Company's proprietary Structured Product Online Calculator ("SPOC"), Strategy Option Solver ("SOS") and Options Calculator ("OC"). These products, when combined and integrated within StoneX Markets' broad range of service offerings, including Market Intelligence, Accumulator Manager, and My StoneX provide a single, digitized self-service OTC Platform. StoneX Markets' self-service OTC Platform has been developed with a focus on providing transparency to markets that are often considered opaque, so that it can be leveraged by all users of commodity options products.
Mark Maurer, CEO & President of StoneX Markets, commented on the news, "We're excited to unveil MyStoneX, one of the most comprehensive and powerful tools on the market for developing and executing risk-based OTC hedging strategies. In addition to providing the industry's most sophisticated technology offering that can support more than 200 commodity products, MyStoneX addresses an educational gap in the OTC marketplace and brings much needed transparency to over-the-counter products. We believe that everyone from the professional trader to the farmer looking to protect his latest crop, deserves to not only understand these products but also feel completely comfortable executing sophisticated risk management strategies. Our self-service OTC platform does just that."
StoneX Markets' Self-Service OTC Platforms includes:
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. The Options Calculator can act as a gateway for users who are new to the options markets with prepopulated strategies that allow for the customization of variables such as quantity, expiration, strike price, and board price giving users the resulting mid-market mark and delta. The payout simulator allows the user to see a chart of their strategy allowing for the ability to view differences in price movement in a bearish, neutral, or bullish market and calculate daily and expiration date PNL. Strategies can be customized by adding legs and then can be easily shared among internal stakeholders or directly with the customer's broker. This allows customers to come to the conversation with their brokers with clear direction and educated questions reducing the time from idea to trade execution.
Strategy Option Solver:
The Strategy Option Solver allows users to develop their own options strategy using multiple inputs and customization that takes into account the four most popular types of options strategies. Customers can look to solve for zero-cost strategies with strikes in near real time which can then be easily customized and then sent to the trading desk for execution. The Strategy Option Solver can be used by more sophisticated users to develop more effective zero or minimal cost strategies allowing them to capture some of the benefits offered by structured products.
A state-of-the-art online calculator for structured options strategies allowing users to customize inputs that take into account things like, customer profile, trade timing, commodity type, aggressiveness of strategy, accumulation level, and more. Users can review their structured product strategies using order management and in-depth chart analysis with the platform providing the ability to share these strategies, request quotes and place live orders to take a trading strategy from idea through to execution. The platform provides a level of deep programmability and makes these advanced capabilities incredibly accessible through a streamlined interface and an extensive library of educational materials. These educational materials not only explain the differences between structured product types but also provide details on the scenarios they can be the most effective in. SPOC allows users to set price level alerts via email and place live orders with access to high touch support from a broker for customers that need further assistance. Mr. Maurer concluded, "This self-service offering gives clients direct access to our OTC markets through an easy-to-use platform that puts them in the driver seat, facilitates collaboration with their brokers, and offers them the tools and educational materials needed to determine which hedging strategy works best for them. We leveraged this industry leading technology and our extensive experience in the OTC markets to deliver a technology platform that can provide the same level of trust and transparency we provide to our clients every day."
The OTC Self-Service platforms can be accessed through a user's MyStoneX portal which also provides users with a range of other StoneX technology offerings, including industry-leading boots on the ground market intelligence, post trade management, and more. You can learn more about the self-service OTC Platform by clicking here.
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