The foreign exchange (FX) post-trade infrastructure provider Cobalt has announced an undisclosed investment sum from Standard Chartered.
The bank initially signed as a client in February, and now joins Citi as an investor in Cobalt’s expanding network.
Credit is currently over-allocated in the FX market and this presents a significant risk. Cobalt allows for dynamic credit allocation across clients and counterparties to allow full compliance with the FX Global Code.
It enables full automation of the trade lifecycle, without the need for additional downstream reconciliation. Its technology is able to service interbank, prime, buy-side and bank-to-client relationships, and banks are able to brand the technology to use for their own clients.
“The past few months have been a tumultuous time for the financial markets with market participants realising quickly that their current infrastructures were not fit for the new normal. During this period, Cobalt’s solutions have continued to allow our network to operate at ease as well as reducing their operating costs,” said Darren Coote, CEO of Cobalt.
“We welcome Standard Chartered as our latest client investor and look forward to continuing to work with them in this new capacity to both improve our services and extend our offering, with a particular focus on the emerging markets.”
“We see Cobalt as being a core part of our FX operating platform, enabling Standard Chartered to reduce risk and costs by automating manual processes across the bank and therefore improving services to our clients,” added Gareth James, Macro COO at Standard Chartered.”