Cobalt DL that leverages blockchain to re-engineer post-trade processing for the institutional FX market, has announced the commencement of beta testing with various leading FX participants on its private peer-to-peer network that uses blockchain technology to cut post-trade cost and risk.
According to the official release, after the successful completion of proof-of-concept with one of the largest FX market making banks, the platform is set to launch next year with eight leading institutional FX participants already committed to the service.
“The emergence of agile, sophisticated technology such as distributed ledgers has set the scene for an alternative to the inflexible post-trade infrastructure that financial market participants are forced to use today. Cobalt DL’s combination of market expertise and forward-thinking technology is dramatically shaking up the post-trade space and significantly reducing costs for market participants,” Andy Coyne, Co-Founder of Cobalt DL said.
In order to further develop the technology, global financial technology specialist First Derivatives has invested and partnered with Cobalt DL, providing its services. First Derivatives’ Kx technology, a market-leading big data solution, will be licensed by Cobalt DL as a core part of its platform.
The technology will integrate seamlessly with all trading sources and venues and provide immediate efficiency benefits to deliver a significant cost reduction. The FX market participants will be facing multiple unnecessary license fees, ticketing charges, IT overheads and staff costs as a result of the complexity of existing structures.
