Introducing Brokers (or IB’s) are brokers or firms that have customers interested in OTC instruments, but who cannot provide these products directly. Rather than being limited to offering exchange-traded products only, IBs can take advantage of INTL FCStone Markets’ swap desk capabilities. We earn our IB customers with our high-touch customer service capabilities, strong balance sheet, onboarding ability and IFM’s initial and variation margin thresholds (for customers who qualify for them), which can act as financing.
Introducing brokers can refer customers to IFM, which can provide them with access to OTC instruments. These instruments can enable those customers to:
- Hedge their market price risk with OTC Lookalike options and swaps.
- Take advantage of IFM’s initial and variation margin thresholds (if they qualify for them), which in some cases can act as financing.
- Find hedging strategies via OTC customizable options that enable them to manage their production with specific contract sizes, expiration dates and strike months.
Trading over-the-counter and exchange-traded derivatives is not suitable for all investors and involves substantial risk. INTL FCStone Markets, LLC (“IFM”), a subsidiary of INTL FCStone 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. IFM’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 IFM. Any recipient of this material who wishes to express an interest in trading with IFM must first prequalify as an ECP, independently determine that derivatives are suitable for them and be accepted as a customer of IFM. 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.
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