StoneX and Expana Launch First OTC Dairy Derivative | LeapRate | Online Trading Industry News, Broker Intelligence & Fintech Analysis
StoneX and agri-food intelligence platform Expana have launched the first contract in a new suite of over-the-counter dairy derivatives, with Fat Filled Milk Powder now available for trading as the two firms move to address a longstanding gap in hedging tools for the global dairy industry.
The FFMP contract is underpinned by Expana’s IOSCO Assured EU dairy benchmark prices and marks the first product from a broader collaboration expected to expand to additional dairy commodities over time.
StoneX customers can access the contracts within their existing trading workflows and can use the StoneX Plus platform to view and analyse historical FFMP prices alongside other selected Expana dairy benchmarks.
The dairy industry has historically lacked direct hedging mechanisms for many of its products, with price risk often absorbed or passed along the supply chain rather than actively managed.
The companies believe the new derivatives suite will give market participants a reliable and trusted pricing reference regardless of their position in the market.
Liam Fenton, Global Head of Dairy and Food Group at StoneX, described the launch as a “strong foundation for our partnership with Expana.”
Marcel Goldenberg, Co-Chief Market Reporting Officer at Expana, stated: “This product delivers a price for FFMP that every participant in the market can trust, regardless of which side of the trade they are on and delivers arbitrage opportunities against Skimmed Milk Powder and Vegetable Oils that were previously not available.”
