Cobalt has published its core pricing and has committed to not increase prices in the future without client approval.
Cobalt is set to charge $300,000 per annum for its core ledger license and its core credit license. The Cobalt unique transaction (CUT) identifier will be priced at two cents per trade or 0.5 cents per microtrade.
By publicly announcing this set-rate pricing, Cobalt contends that it is operating in direct contrast to the current post-trade landscape, where the firm says the pricing is opaque and many participants secure different deals, creating an uneven playing field.
The core licenses look to replace much of the cost associated with matching, netting and aggregation, confirmations and credit management, for all relationships and flow types in FX.
Claiming that real data analysis shows 50-60% cost savings can be quickly achieved using its services, Cobalt says that it is able to commit to lower prices than other providers due to the fact that its solution has been developed using technology that was not available 10 years ago, when many of the current infrastructure solutions in this market were designed.
Cobalt will also be establishing a client advisory group which is set to cover topics such as standardisation of processes and data sets, costs driven by the industry and fair pricing policy.
“As an FX utility provider, we plan to keep it this way, in line with our belief that pricing should be fair and transparent for all participants, and in compliance with the FX Global Code,” Cobalt states in a release issued to announce its pricing model.