Articles tagged by Cobalt
Cobalt DL says that it
has commenced beta testing with a number of leading FX participants on its
private peer-to-peer network that uses distributed ledger technology in order to
try and reduce post-trade cost and risk.
Andy Coyne, co-founder
It's nice to know that P&L's managing editor is not the only one who needs to get stuff off his chest, deputy editor Galen Stops has real blockchain fatigue, and it's hard not to agree with him. Is blockchain a solution looking for a problem? Well not exactly, it's a fascinating development that is probably going to have a long and lasting impact on the financial services industry, but just for now, can't we just talk about something else until something tangible happens?
Compression service provider, LMRKTS (Lmrkts), has become the first firm to sign up to Cobalt DL’s BlueSky service, the shared ledger component of Cobalt’s platform.
The Cobalt BlueSky service is a secure repository of unique shared FX contracts and the staging area for lifecycle events, risk reduction and preparation of trades for settlement finality. It is designed to enable third party technology providers to facilitate and develop their own applications based on access to the database of reconciled transaction data created by the Cobalt network.
Citadel Securities and XTX Markets have signed up as Cobalt launch participants.
Cobalt’s FX solution is set to launch later this year. There are currently 22 beta participants on Cobalt’s peer-to-peer network including Citi, which became a Cobalt investor in 2016, and Cobalt’s technology partners, including Setl, First Derivatives and Tradepoint.
Cobalt has also announced the expansion of its core team and the opening of a New York office.
Devika Darbari joins Cobalt as COO from JDX Consulting, where she was a board member and CEO Americas. She will also head up operations in the US.
Execution analytics provider BestX is partnering with Cobalt, the FX post-trade processing network based on distributed ledger technology.
BestX is the first TCA and analytics provider to connect with Cobalt’s BlueSky service, enabling clients of both firms to independently validate client trades and define, achieve and demonstrate best execution through Transaction Cost Analysis (TCA).
Pressure for independent analytics in FX has increased over the past year, driven by MiFID II compliance, regulatory focus on transparency, as well as a more activist ‘asset-owner’ community that wishes to see evidence of best execution across all FX trades.
Cobalt, the FX post-trade processing network based on shared ledger technology, has closed an investment from Henry Ritchotte, the former COO of Deutsche Bank, who will become a member of Cobalt’s strategic advisory board.
Ritchotte spent over two decades at Deutsche, where he was a member of the management board and Group Executive Committee acting as chief operating officer and chief digital officer.
Since leaving the bank at the end of 2016, Ritchotte established RitMir Ventures, a principal investment firm focused on investing in products and services transforming finance through disruptive regulatory and technology driven business models.
Cobalt, the FX post-trade processing network based on distributed ledger technology, has joined the BT Radianz Cloud.
This means that organisations can now access Cobalt’s private peer-to-peer and blockchain services via their Radianz Cloud connections. The Radianz Cloud links a community of thousands of brokers, institutions, exchanges and clearing and settlement houses. Through a single secure network connection, members can access thousands of applications and services from more than 400 providers critical to the everyday running of the global financial sector.
Cobalt deploys distributed ledger technology to try and remove cost and complexity from post-trade processing. It leverages blockchain-derived concepts of encryption, digital signatures and consensus to deliver a single, immutable record for each trade, replacing traditional systems, which often involve duplicated processes. By creating a shared view of trade data, Cobalt aims to free up back and middle office resources from multiple layers of reconciliation, speeding up processing.
Kevin Gillespie has joined Cobalt in a sales and business development role. Based in London, Gillespie joins the firm from Hotspot, where he was a director of FX sales.
Gillespie had been with Hotspot since 2007, working continuously for the FX ECN through the ownership changes of Knight Capital Group to KCG to BATS and most recently to CBOE BATS.
Prior to that, he spent four years as the head of new business development at IFX Markets, where he was responsible for developing the firm’s online institutional FX business.
Open data movement technology provider Solace has announced that Cobalt, which aims to reduce the cost, risk and complexity of FX post-trade processing, is using it to facilitate the event-driven flow of information.
Cobalt CEO Andy Coyne, says, “FX is a high speed, high throughput market, and Solace plays a mission-critical role by guaranteeing the rapid, reliable delivery of massive amounts of information.”
The firms say Cobalt selected Solace technology for its “unique” ability to guarantee the delivery of very large volumes of messages while protecting downstream systems from high burst rates during periods of exceptional market volume and volatility.
Cobalt, the foreign exchange pre- and post-trade processing network, has appointed Darren Coote as a strategic advisor and investor.
Coote has more than 25 years’ experience working in the FX industry, having held a number of senior roles running global FX trading and e-FX businesses at UBS and Lloyds. He has also served on a number of FX boards and committees, including the Bank of England’s FX Joint Standing Committee and EBS’s executive board prior to the company’s sale to ICAP in 2006.
Adrian Patten, co-founder of Cobalt, comments: “Darren’s extensive and varied experience in the global FX industry adds invaluable expertise to our advisory board. His investment is another vote of confidence from a leading FX market player as we move towards our live launch later this year.”
Cobalt has secured a strategic investment from Singapore Exchange (SGX).
In a release issued today, Cobalt says that SGX’s investment will support the continued expansion of its footprint into the FX space, accelerating the technology development and build out of its team.
Cobalt uses distributed ledger technology (DLT) to provide shared back and middle office infrastructure. By creating a shared view of trade data, Cobalt looks to free up back and middle office resources from multiple layers of reconciliation, creating a “golden” portfolio of FX transactions from which to provide multiple services.
Cobalt, the shared back and middle office FX infrastructure provider, has unveiled its new credit management platform.
One of the issues that this credit engine attempts to solve for the market is the challenge faced by credit providers. Over the last ten years the number of prime brokers in the FX market has shrunk, in part because the risk of suffering a major loss from a defaulting client has in some cases failed to justify returns.
According to Cobalt, this risk is driven by the inability to allocate and manage credit at FX trading venues in real-time, meaning the party with the credit risk is often the last to know. By enabling central real-time credit management, the Cobalt claims that its platform overcomes these issues entirely.
In this week’s In the FICC of It podcast, after last week’s confident prediction of a German World Cup win Profit & Loss’ managing editor Colin Lambert puts a hex on another team by predicting them as winners and editor Galen Stops volunteers to play fact checker on statements made by panellists at a conference.
They also discuss this week’s news, including the Global Foreign Exchange Committee meeting, BNY Mellon launching an options business, the latest from the crypto world and the latest evidence (unproven) of regulatory arbitrage involving Australia and the US.
On a more sombre note they also pay tribute to FX industry veteran Paul Chappell, who passed away this week, with a couple of lighter hearted stories involving him.
Cobalt, a London-based back and middle office infrastructure provider, announced that it will be hosting its systems in the BT Radianz Cloud.
The Cobalt system delivers this shared infrastructure by using a combination of an immutable shared ledger and low latency technology in a bid to “significantly reduce post-trade cost and risk for the financial markets”. By creating a shared view of trade data, Cobalt seeks to free up back and middle office resources from multiple layers of reconciliation; creating one immutable record of FX transactions from which to provide multiple services.
As Cobalt prepares to go live, its founders reflect on the difficulty for banks to innovate like they used to, why blockchain technology in its traditional format is ill-suited to processing FX transactions and why shared infrastructure is – finally – a reality.
The first thing that Andy Coyne and Adrian Patten, the co-founders of Cobalt, are keen to emphasise is that the system that they have built is very real and is already up and running. Currently, Cobalt has live transactions from 12 banks going through the system and is due to go into full production this year. They insist that “full production” whilst a technical reality is really only when the final paperwork and vendor risk management (VRM) documents get final sign-offs.
FX post-trade processing network provider Cobalt has appointed FX industry veteran Darren Coote as managing director.
Coote has been working with Cobalt since the end of 2017 as a strategic advisor and will now take on responsibility for the day to day management of the company. The firm says the appointment comes at a key time for Cobalt as the company launches and looks to significantly scale its business. Coote brings over 25 years’ experience in the FX business to Cobalt.
Cobalt, the FX post-trade processing network based on shared infrastructure, has appointed Anoushka Rayner as global head of sales and business development.
Rayner brings over 20 years of experience in the FX industry to Cobalt. She most recently worked as business manager and global FX sales specialist at Traiana. Prior to this, Rayner was a sales director at smartTrade Technologies and was the global head of FX option sales at FXCMPro, the institutional arm of FXCM.
At Cobalt, Rayner will be responsible for managing the firm’s commercial relationships and will play a key role in scaling up the business as it gets ready for its launch later this year.
For all the hype and excitement around distributed ledger technology (DLT), speakers at the Forex Network Chicago conference debated the real value of decentralised systems such as blockchain.
“If you’re trying to build a business you need to make it cheaper, quicker, with better customer services and hopefully allow people to have more access. Let’s be honest, blockchain fails on nearly all of those things,” asserted Adrian Patten, co-Founder and chairman of Cobalt.
Patten added that the existing system for agreeing contracts has some elements that are beneficial, such as mediation, that decentralisation doesn’t necessarily allow for. By contrast, he described some of the things that he’s witnessed in the decentralised crypto trading space as “bloody scary”, adding: “A lot of these exchanges are being run on laptops and they’re lucky if they have Excel”.
The comparison between blockchain technology and the early days of the Internet is one that is perennially made in articles and at industry conferences, but is it accurate or even helpful?
This was the question posed to Cristina Dolan, co-founder and COO of InsureX, and Adrian Patten, the co-founder and chairman of Cobalt, at the Forex Network Chicago conference.
“The Internet was a lot easier to deal with because it was a linear process: you had a database, there were users, you had a web interface and although you were still training people how to use the web interface, you could control that whole ecosystem that you put up, you just had to drive people to the page,” said Dolan.
IHS Markit is partnering with Cobalt through its MarkitSERV business to deliver and sell post-trade processing services for FX, and is also making a strategic investment in the firm.“In working together, MarkitSERV and Cobalt will offer a shared post-trade infrastructure designed to replace legacy technology and manual processes, bringing increased efficiency and reduced operational risk to the FX market,” says IHS Markit in a release issued today.The integration between the firms is already complete, with trade data flowing from customers and trading venues via MarkitSERV into the Cobalt platform.
Cobalt, which provides FX infrastructure based on shared ledger technology, has hired five senior staff in its London and New York offices.Bob Linton, based in New York, has been named head of connectivity and onboarding at Cobalt. He joins following a 13-year stint at market infrastructure technology provider, Traiana.Dan Evans has been appointed as product analytics lead, having previously spent seven years as a director of FX trading at UBS and also working as the director of his own consultancy.