What is Cobalt doing to tackle this challenge?
Cobalt has developed a unique and ground-breaking platform that utilises high-throughput technology to control credit and associated market access rules throughout the trade lifecycle, in a way that significantly reduces risk whilst not disrupting the traditional means of execution.
Crucially, our solution is co-located amongst all the main execution venues, meaning it is fast and operates a low latency messaging infrastructure that can guarantee the delivery of over one million messages per second.
Furthermore, credit can be managed using all traditional market methodologies: NOP, DSL and most importantly margin. It can be pushed dynamically to clients and trading venues in real-time, meaning that a client in a distressed situation cannot increase their position but is able to unwind it and eliminate the risk.
Electronic trading has evolved beyond recognition in recent years, and it’s now critical that credit management catches up. Live credit management is the future for the global FX markets and Cobalt is leading the charge in creating a more efficient, orderly future for all participants.