Sucden Financial Selects Cobalt’s Post-Trade FX Infrastructure

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 Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) 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.

More participants select Cobalt infrastructure

Today’s announcement comes just over two weeks after Cobalt revealed that Citi bank had become the latest market player to support its infrastructure, and was planning on going live on its infrastructure for bilateral trading.

Specifically, Citi has invested in and backed the technology firm. The partnership is similar to Cobalt’s partnerships with Deutsche Bank, XTX Markets, and Saxo Bank, which were announced in September of last year, as Finance Magnates reported.