Global financial institutions’ foreign exchange (FX) post-trade systems are aging, becoming increasingly inefficient, risk-laden and costly. Many are struggling to cope with the demands of accurate data capture during the life cycle of trades. This is creating operational risk and could undermine regulatory compliance.
But institutions can now benefit from the latest distributed ledger technology innovation thanks to collaboration between BT and Cobalt.
Cobalt is a London-based fintech that delivers a shared back and middle office infrastructure using a combination of an immutable shared ledger and low latency technology to significantly reduce post-trade cost and risk for the financial markets. By creating a shared view of trade data, Cobalt frees up back and middle office resources from multiple layers of reconciliation; creating one immutable record of FX transactions from which to provide multiple services. Cobalt’s private network dramatically reduces risk and post-trade costs for financial market participants by up to 80 per cent.
It has been working with BT to deploy its systems in the BT Radianz Cloud, one of the world’s largest secure networked financial communities linking thousands of brokers, institutions, exchanges and clearing and settlement houses globally.
By hosting its systems in the Radianz Cloud, Cobalt benefits from a ready-to-exploit global market reach, ability to scale and a commercial structure that enables it to meet the requirements of its target customers — large financial institutions. Security and resilience are key. Radianz connectivity and managed hosting services help Cobalt meet strict service level agreements and customers’ high security requirements.
Cobalt is offered as two solutions hosted independently in Radianz Cloud centres in London and New York — the world’s leading FX markets. It is being launched following a successful deployment with a major global institution. For further details go to http://www.cobaltdl.com/
