Cobalt, a provider of post-trade infrastructure, announced this Wednesday that Sucden Financial has become the latest institution to join the firm’s post-trade technology network for its foreign exchange (forex) business.
The purpose of Cobalt is to redesign post-trade forex infrastructure and processes. To do this, the system’s automated technology matches all versions of a trade into one ‘trusted copy.’
By creating a trusted copy, the infrastructure generates one unchangeable data set of FX transactions. This is at odds with the current industry practice, where a single trade today creates multiple records for all parties. This leaves more room for error and inconsistencies throughout lifecycle events.
Under the agreement, Sucden Financial will be able to utilize Cobalt’s range of middle and back-office trade solutions, including its Core Credit modules. This has been made possible via IHS Markit’s connectivity service.
Commenting on the partnership, Gavin Parker, COO from Sucden Financial, said in the statement: “We continually enhance our services, utilising the latest technology to increase efficiencies for clients. Cobalt provides an exciting cutting-edge solution, enabling us to further expand our institutional FX offering.”
Cobalt’s Core Credit solution is a centralized credit management tool for all relationship types, such as bilateral and primed flow. The solution can be used by banks, prime brokers, prime clients, and direct clients.
“Credit management within FX has long been a problematic area for all market participants. With further adoption of Cobalt’s technology across a variety of market participants, we are working towards centralised infrastructure for the future of FX,” added Darren Coote, CEO of Cobalt in the statement.