Bulletin: Jump Financial LLC Term Loan Add-On To Expand Trading Capital And Support Liquidity

TORONTO (S&P Global Ratings) March 14, 2022--S&P Global Ratings today said it expects Jump Financial LLC (BB-/Stable/--) to use the proceeds of its $200 million add-on to its $300 million term loan to expand trading capital and support liquidity as it continues growing its trading operations. The add-on does not affect our ratings on the company. Despite our expectation that use of the additional trading capital will increase market and credit risk exposures, we believe the company's capital is sufficient to maintain an S&P Global Ratings risk-adjusted capital (RAC) ratio above 10%, in line with our current ratings expectations. The RAC ratio was 13.4% at the end of December 2021. Jump Financial posted higher net trading income in 2021 than

...March 14, 2022 TORONTO (S&P Global Ratings) March 14, 2022--S&P Global Ratings today said it expects Jump Financial LLC (##-/Stable/--) to use the proceeds of its $200 million add-on to its $300 million term loan to expand trading capital and support liquidity as it continues growing its trading operations. The add-on does not affect our ratings on the company. Despite our expectation that use of the additional trading capital will increase market and credit risk exposures, we believe the company's capital is sufficient to maintain an S&P Global Ratings risk-adjusted capital (RAC) ratio above 10%, in line with our current ratings expectations. The RAC ratio was 13.4% at the end of December 2021. Jump Financial posted higher net trading income in 2021 than 2020 despite lower volatility in the markets, illustrating the strength of its market-making franchise....

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