FX post-trade network Cobalt goes live

FX post-trade network Cobalt goes live

Blockchain-based post-trade processing network Cobalt has gone live with Deutsche Bank, XTX Markets and Saxo Bank.

Cobalt is among a clutch of firms bidding to use shared ledger technology to drive down reconcilliation costs and improve operations in the post-trade space. The firm's platform, set up by by currency trading veterans Andy Coyne and Adrian Patten, delivers a private peer-to-peer network that aims to slash back office costs in FX markets by providing a single, shared view of a transaction to trading counterparties.

By creating a single, standardised view of each transaction, users can manage services such as aggregation and netting via a single platform, thereby reducing duplication and position exposures. From analysis using executed trade data, Cobalt claims to have been able to provide clients over 50% in cost savings across the FX lifecycle.

Russell LaScala, Co-head of Global FX at Deutsche Bank said: “The two biggest business issues banks face today are managing risk and the scaling of their business with the rise of smaller tickets. Cobalt’s solution ensures we can reduce operational risks associated with legacy systems and slash the cost of processing tickets for our entire FX business using a single platform.”

There are currently 20 beta participants waiting to onboard the network, including Citadel Securities and Citi, which became a Cobalt investor in 2016.

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