StoneX Completes the Execution of the First Australian Feeder Cattle Swap

StoneX Group Inc. announced that it successfully executed the first cattle swap via the StoneX Australian Feeder Cattle Swap offering. The counterparties to the trade were longstanding StoneX client Mort & Co, a Queensland-based lot feeder, and an East Coast-based cattle trader in Australia.

Fazzaco Hall of Fame 2022 to Make Debut Soon

"StoneX and Argus have done well to create a feeder steer price index that is commercially relevant to the industry, which in turn gives us peace of mind to use a swap product against which it is settled,"said Charlie Mort, Executive Chairman of Mort & Co."The ability to hedge cattle prices out to 12 months and beyond creates a new set of opportunities when both input and output prices can be locked well in advance of the physical transaction."

Since the launch of the Australian Feeder Cattle Swap in February 2022, StoneX has onboarded twelve existing accounts with over fifty new clients to be onboarded over the course of the year.

Tim Jude, StoneX's Sydney-based Livestock and Commodities Broker commented:"StoneX is proud to meet the demand of the Australian cattle market for an instrument to hedge their risks and manage their margins. This swap is a significant milestone in bringing increased transparency and more efficient pricing to the cattle market. We've seen a significant decrease in the spread between the highest and lowest price paid in the market each week as a result of this swap and anticipate even greater efficiencies going forward."

"I am delighted to see the first StoneX Australian northern feeder cattle (Argus settled) swaps trading, enabling market participants to hedge risk and manage margins in these increasingly turbulent times,"said Argus Media chairman and chief executive, Adrian Binks."We are pleased to provide the settlement mechanism for this financial instrument, as we seek to bring greater price transparency to the Australian cattle markets."