Press Release

Solving the over-allocation of credit with the Foreign Exchange and Prime Brokerage Businesses

24th November 2021 – London 

Cobalt announces collaboration with 7 global banks to pilot Dynamic Credit solution for 10 execution venues

Cobalt, a provider of critical risk and data services to the Foreign Exchange and Digital Asset market, today announces its working group of 7 global banks is participating in a pilot to evaluate the full benefits of Dynamic Credit.  The pilot, which started in October, is using production trade data from each participating execution venue to fully demonstrate how credit can be managed more effectively in the market.

Existing credit management falls short of the FX Global Code guidelines (29 and 41), lacking market access control and poor ROE.  Carve-outs never reflect the true exposure or full appetite.  Credit limits are updated locally and rely solely on trades executed at that specific venue.  Furthermore, each venue has their own local credit management tools for adding, updating and removing credit resulting in a huge administrative burden on credit providers.

Via Cobalt, the over allocation of credit is fully addressed and clients are empowered with the ability to set one overarching limit per counterparty that simultaneously feeds all execution venues.

By providing a one-off email approval to permission trade flow into a secure, anonymised environment, Cobalt can demonstrate exactly how Dynamic Credit will benefit your business.

Please contact your usual Cobalt representative or [email protected] for further information and participate in the pilot.