Cobalt is looking to strengthen its footprint in the FX space, having just secured a sizable investment from Singapore Exchange (SGX). The latest investment by SGX will look to support Cobalt’s expansion and development of post-trade technology, which has seen an uptick in demand.
Cobalt presently deploys a wide range of solutions and services, based on distributed ledger technology (DLT). The group also boasts an FX post-trade processing network, supported by shared infrastructure and high-performance technology.
Central to Cobalt’s technology suite is its shared view of trade data. The solutions it deploys also help free up back and middle office resources from multiple layers of reconciliation. “SGX’s investment is testament to our innovative application of technology in the FX space,” explained Adrian Patten, Co-Founder, and Chairman of Cobalt.
Liquidity Constraints in 2021 – What is the Best Path Forward?Go to article >>
The platform is a notable departure from other traditional approaches to financial infrastructure that is deployed by other venues. Many other groups rely on dated middle and back-office systems, several of which can be burdened by risk, inefficiencies, or other costs.
“Our platform addresses pain points faced by almost every institution that trades FX: the unnecessary cost and risk associated with post-trade processing. Singapore is an important global hub for FX and we are delighted to welcome SGX on board as we continue to expand our footprint in the region,” added Patten.
Michael Syn, Head of Derivatives at SGX, commented on the investment: “We are pleased to be supporting this important FX market infrastructure, which is complementary to our growing FX futures business and a natural fit for SGX given our own commitment to product and platform innovation. We look forward to seeing Cobalt continue to gain traction in the global post-trade FX market as they pioneer FX technology development, delivering cost and risk mitigation benefits to market participants across the world.”
“Exchanges around the world continue to invest in the critical infrastructure underpinning financial markets. This collaboration between a major Asian exchange and an innovative firm that has developed a unique high performance, DLT solution is a major step forward in upgrading the systems our industry relies on to operate efficiently, safely and cost-effectively,” reiterated Henry Ritchotte, Strategic Advisor to Cobalt.