StoneX and Cotlook to Launch New OTC Cotton Derivatives
Key Highlights
- ➤StoneX (SNEX) signs exclusive Cotlook licensing agreement for OTC cotton derivatives
- ➤Cotlook Brazil Basis Swap will be the partnership’s first OTC cotton derivative
- ➤New swap references the Brazilian component of the Cotlook A Index
- ➤Brazil overtook the US as the world’s largest cotton exporter in 2023/24
Expert Statements
Antonia Prescott, Managing Director and Editor, Cotlook
“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
“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.”
Brett Phillpott, Global Co-Head of Commercial Hedging & Commodities, StoneX
“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.”
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.
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