Peer-to-peer FX trading startup Cobalt DL is to deploy OpenCSD, the permissioned ledger based platform from SETL to create a shared view of trade data for market participants.
Cobalt DL is primed for launch in 2017 with 15 leading institutional FX participants already committed to the service.
The collaboration will see Cobalt DL creating a single, shared view of each FX transaction using SETL’s OpenCSD Platform. The immutable record is expected to reduce cost, complexity and inefficiency in the current FX post trade space, where a single trade creates multiple records for all parties, including buyers, sellers, brokers and clearers.
The record will provide cryptographic proof of a contract and of the parties’ agreement to the trade terms. Participants will be able to retrieve details of their own trading activity from the ledger, while other participants’ data is screened off from general view.
Andy Coyne, co-founder of Cobalt DL says: “The FX market requires systems to be able to achieve high burst transaction throughputs per second with daily capacity in the millions. SETL were able to demonstrate resilient working technology comfortably processing at both high burst and steady state speeds and in excess of 1.4 billion transactions a day - an absolute necessity in the high volume FX market. The SETL OpenCSD platform provides a real-world interface and API structure that will allow us to fully integrate it into our solution.”
The system is currently in beta testing ahead of live deployment. Peter Randall, CEO of SETL emphasises: “This is not a proof-of-concept or a prototype; it will be a revenue generating implementation of distributed ledger technology.”