Today London-based Cobalt and Californian Baton Systems announced a partnership to provide a joint middle and back-office DLT solution to foreign exchange (FX) clients. Both firms have major institutional backers, with Baton boasting JP Morgan as a client and Cobalt’s customers include Standard Chartered, Citi, Deutsche Bank and XTX Markets. Cobalt also has an IHS Markit integration and investment.
Each of the post-trade solutions has a different emphasis, although both reduce client risk. In Cobalt’s case, it provides a shared record for an FX trade, which is then leveraged in middle office solutions such as confirmations, netting and credit management, as well as other post-trade steps.
“The FX industry is rife with opportunities for modernisation, but legacy systems lag behind much of the financial services industry in terms of innovation,” said Darren Coote, CEO of Cobalt.
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