First Derivatives Invests in Cobalt DL FX Post-Trade Processing Blockchain

Cobalt DL, a Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term startup co-founded by former Traiana CEO Andrew Coyne and former Mako FX owner Adrian Patten, has commenced beta testing with a private peer-to-peer network that uses distributed ledger (Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology) to significantly cut post-trade cost and risk.

Join the industry leaders at the Finance Magnates London Summit, 14-15 November, 2016. Register here!

The Cobalt DL team says that after a year of design and testing and following a successful completion of a proof-of-concept with one of the largest FX market making banks, the platform will launch in 2017, with eight institutional FX participants already committed to the service.

They explain that from a single transaction, existing post-trade infrastructure creates multiple trade records for buyer, seller, broker, clearer and third parties. By creating a single, shared view of a transaction, it frees up back and middle office resources that are currently overwhelmed by the need for continuous reconciliation across multiple systems.

The technology is designed to integrate seamlessly with all trading sources and venues, providing immediate efficiency benefits which Cobalt DL's analysis has shown to deliver a significant cost reduction when compared with existing infrastructure. They consider that FX market participants incur multiple unnecessary license fees, ticketing charges, IT overheads and staff costs as a result of the complexity of existing structures.

Global financial technology specialist First Derivatives has invested and partnered with Cobalt DL, providing services to further develop the technology. Cobalt DL will license First Derivatives’ Kx technology, a market-leading big data solution, as a core part of its platform.

Coyne commented: “The emergence of agile, sophisticated technology such as distributed ledgers has set the scene for an alternative to the inflexible post-trade infrastructure that financial market participants are forced to use today. Cobalt DL’s combination of market expertise and forward-thinking technology is dramatically shaking up the post-trade space and significantly reducing costs for market participants.”