A growing problem within Forex is greater volumes matched up with diminishing sizes of the subsequent tickets. This makes affordability post-trade a larger issue every day, as people naturally move towards this new way of practicing FX. Cobalt aims to change this by revolutionizing the way we work with Forex. This is done by the launch of a new system within large FX platforms like Deutsche Bank, Saxo Bank and XTX Markets.
The idea’s beauty comes with the sheer simplicity of it. Cobalt has set up a singular trusted ledger created by the use of automatic systems within the various trading platforms. This allows all the companies involved to have a singular, trusted format they can always fall back on.
With one immutable dataset within the FX platform, there is a lot less room for administration errors among the various companies who, before this, compiled their own separate ledgers. Even something as large as Forex, the rule of “Less moving parts makes less errors” is still applicable.
Russel LaScala, one of the Co-heads of global FX within Deutsche Bank explained that the biggest issues within a bank today is keeping the risk low and keeping themselves relevant with smaller tickets becoming the norm. Post-trading with smaller tickets simply proved too unprofitable to let it go untreated.
Cobalt’s adding more businesses to this format
Having started with over twenty upstanding financial companies, most are still in the process of onboarding to this platform. No company is pulling back, however, in this new shift of FX trading.
Mike Irwin, Chief Operating Officer of XTX Markets, stresses how important it is to increase efficiency within a company and limiting the costs that accompany it. They chose Cobalt as a partner due to their impartial nature as a company that stresses function above all else, while keeping their fingers on the pulse of technology to properly help businesses grow larger while still managing to turn a profit from the greater costs.
With the simplicity Cobalt has brought with their singular ledger, they only have to worry about one format of the transaction. Both parties of said transaction can review, manage and work within this one ledger, severely shrinking the amount of duplication and exposures.
Henrik Villberg, one of the Heads of Saxo Bank, explains that smaller tickets within the FX mean a large increase in costs to manage the processes.
That is why Saxo Bank was so eager to embrace Cobalt’s solution. It reduces the administrative costs and helps keep costs low, the transactions transparent, and the trading profitable.
Cobalt leading the future of FX
Darren Coote addressed the public at Launch as the Chief Executive Officer of Cobalt. He stressed the importance of the support of these three giants within the FX industry, and that he was leading the future of this industry’s post-trading.
English
Arabic
Dutch
French
German
Italian
Polish
Portuguese
Spanish