Euromoney Foreign Exchange Awards 2023: Technology, infrastructure and innovation best provider – best FX market innovation: CobaltFX
CobaltFX, a portfolio company of United Fintech, offers an innovative solution to a decades-long issue facing the FX industry around credit distribution. This is that the need to carve out credit limits among various venues reduces credit availability for counterparties and reduces trading volumes, while credit lines can prove costly for banks to maintain.
CobaltFX is now live with a unique solution to credit distribution with multiple market access points with greater control, low administration, better transparency and regulatory satisfaction.
The firm designed and built a modular infrastructure for institutional foreign exchange covering all FX products, including spot, forward, swaps, NDFs and options. The suite normalizes all data into legal entity identifier (LEI)-based nomenclature, while the modules include credit, trade matching, exception management, trade netting, payment netting, allocations, enrichment and settlement orchestration.
The shared ledger infrastructure is a new concept to the FX market. It runs as a multi-tenanted, logically separated shared middleware and is very different to legacy siloed infrastructure.