The new suite of OTC derivatives will help cotton market participants manage basis risk associated with non-US cotton exports
NEW YORK, Oct. 01, 2026 (GLOBE NEWSWIRE) -- StoneX Markets LLC ("SXM"), a subsidiary of StoneX Group Inc. (NASDAQ: SNEX), has entered into an exclusive licensing agreement with Cotlook to launch a new suite of OTC cotton derivatives, designed to help market participants manage risk in an increasingly globalised cotton market. The first product developed under the partnership will be the Cotlook Brazil Basis Swap, a new risk management tool referencing Cotlook's internationally recognised cotton pricing benchmarks.
The launch comes amid a major shift in global cotton trade flows. Brazil overtook the US as the world's largest cotton exporter in the 2023/24 season, cementing its position as a key supplier to Asian textile manufacturers and an increasingly important influence on global pricing. As Brazil's role has grown, so has the need for more effective risk management solutions.
The first OTC cotton derivative will reference the Brazilian component of the Cotlook A Index, helping farming cooperatives, merchants, mills, manufacturers and other cotton market participants better manage and hedge risk. Designed with the needs of the cotton supply chain in mind, it represents a significant enhancement to the tools available for managing price exposure.
Antonia Prescott, Managing Director and Editor, Cotlook, commented:
"The collaboration with StoneX is an important evolution in our longstanding mission to bring price transparency to the international cotton industry. We are pleased to be working with StoneX to create a valuable instrument for our customers to actively mitigate the full composition of their price risk."
Brett Phillpott, Global Co-Head of Commercial Hedging & Commodities, StoneX, added:
"Our customers in the global cotton industry have long sought the ability to manage the basis risk inherent in their international cotton supply chains. These OTC derivatives will allow them to hedge a significant portion of their price risk that was previously unhedged.
"By working with Cotlook, we are enabling our clients to leverage a well-established benchmark to strengthen their risk management capabilities and improve forward price transparency for the market."
About Cotlook
Cotlook Ltd is an independent UK-based company that has been engaged in publishing cotton prices, news and market analysis for over 100 years. It has a worldwide reputation for accuracy and impartiality, and its price information is trusted and used by government institutions in the US, China and elsewhere, as well as by international trading companies and other major cotton organisations. www.cotlook.com
About StoneX
StoneX Group Inc., through its subsidiaries, operates a global financial services network that connects companies, organisations, traders, and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high-touch service, and deep expertise. The company strives to be its clients' trusted partner, providing its network, products, and services to help them pursue business opportunities, manage market risks, make informed investment decisions, and improve their business performance.
A Fortune 50 company headquartered in New York City and listed on the Nasdaq Global Select Market (NASDAQ: SNEX), StoneX Group Inc. and its more than 5,400+ employees serve over 80,000+ commercial, institutional, and payments clients, as well as more than 260,000 retail accounts, across more than 80 offices on six continents. Further information is available at www.stonex.com/en/
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