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In a landmark development for the Foreign Exchange (FX) industry, 24 Exchange has officially gone live with FX swaps trading, leveraging CobaltFX's innovative Dynamic Credit process. This integration marks a significant step forward in optimising credit intermediation, reducing operational risk, and enhancing liquidity efficiency for market participants.
A game-changer for FX swaps
24 Exchange, a multi-asset trading platform known for its cost-efficient and low-latency trading solutions, now offers live FX swaps trading. This milestone is made possible through its partnership with CobaltFX, part of United Fintech, a leading provider of credit and post-trade infrastructure. By utilising CobaltFX's Dynamic Credit process, 24 Exchange enables traders to maximise available credit lines dynamically in real-time, allowing for more flexible and scalable trade execution.
The Dynamic Credit process is a breakthrough in FX trading. It allows counterparties to pre-set credit relationships and dynamically allocate available credit based on real-time trading conditions. This ensures that market participants can execute trades with optimised capital efficiency, avoiding unnecessary pre-funding constraints and reducing settlement risks.
Enhancing liquidity and market access
Integrating Dynamic Credit into 24 Exchange benefits benefits both maker and taker of liquidity. Traditionally, credit limitations and operational inefficiencies have hindered the FX swaps market. With CobaltFX's technology, credit exposure is managed dynamically, meaning traders can seamlessly access deeper liquidity pools and execute larger trades with reduced counterparty risk.
Jason Woerz, President of 24 Exchange, commented, "We are thrilled to be live with FX swaps trading and to offer our clients a more efficient, cost-effective trading environment. The collaboration with CobaltFX allows us to redefine how credit is managed in the FX market, giving participants unprecedented access to liquidity.”
Darren Coote, CEO of CobaltFX, added, "24 Exchange's adoption of our Dynamic Credit process is a testament to its ability to revolutionise credit management in FX markets. By optimising credit usage in real-time, we are helping the industry reduce risk while increasing efficiency and transparency."
The future of FX trading
With 24 Exchange now live with FX swaps trading powered by CobaltFX's technology, the market is witnessing a new era of efficient credit management. As the industry continues to move towards more automation and enhanced risk management solutions, the adoption of innovative credit optimisation tools is expected to grow.
This development underscores the ongoing transformation of FX markets, where advanced technology makes trading more accessible, cost-effective, and secure. With 24 Exchange and CobaltFX leading the way, market participants can now benefit from a more streamlined and capital-efficient trading environment.
About CobaltFX
CobaltFX provides institutional FX infrastructure focused on a new approach to FX credit and post-trade. In response to regulatory interest, CobaltFX developed Dynamic Credit distribution to eliminate carve-outs and automate FX credit allocation, thus enabling real-time control over credit exposure for all FX products across all market access points.
Founded in 2015, CobaltFX is part of United Fintech Group, an industry-neutral Digital Transformation platform that brings Financial Institutions and fintechs together in a single ecosystem, designed to bridge the gaps across the financial landscape. For more information, visit unitedfintech.com/cobaltFX
About 24 Exchange
24 Exchange allows market participants to seamlessly exchange their exposures at the lowest possible cost. 24 Exchange’s mission is to enable members to initiate the most cost-effective trades across a growing range of asset classes, 24 hours a day. 24 Exchange lowers the cost of exchanging assets in the global markets while delivering creative and unique workflows catered to each asset class. More information is available at 24exchange.com
