The function of the Cobalt Core Ledger is to ensure that trades have passed a number of mutually agreed rules established in Cobalt’s system by market participants before being posted to the shared ledger. The Cobalt Core Ledger covers the following areas:
- Matching, confirmations and trusted Cobalt Unique Transaction (CUT) creation
- Trade netting
- Trade aggregation
- Trade enrichment
- Shared ledger database
Prior to trades being posted on the ledger, they must pass a multitude of checks to create the CUT. From the CUT all other lifecycle events can be performed to optimise FX portfolios and these functions are particularly critical for the orderly operation of the FX market. This means that all trades posted onto the shared ledger are pre-reconciled and enriched in a standardised format.
Cobalt’s shared ledger is the platform’s database of CUT records. These are stored and referenced for clients to perform further lifecycle events before being sent downstream for payment. The shared ledger provides clients with a segregated view of their transactions, meaning all users are working from the same data set. This removes any room for extra reconciliation as any potential errors are flagged during the CUT creation process and amended.