February 4, 2021 - 24 Exchange (24X) has today announced that it is offering dynamic credit management to participants on its multi-asset trading platform via Cobalt, the FX and Digital Asset infrastructure provider. Risk Hub, Cobalt's credit management system, is now available to clients of 24 Exchange's Non-Deliverable Forward (NDF) and FX Spot offerings, and will extend to FX Swaps when they launch later this month.
"The lifeblood of the FX market is interbank credit," explains Dmitri Galinov, Founder and CEO of 24 Exchange. "But the over-allocation of credit on third-party platforms can make it difficult for banks and credit intermediaries to have a complete, real-time picture of their risk, thereby creating unwanted exposure. Cobalt's dynamic credit offering solves this problem."
Real-time updates of exposure and credit risk can be managed centrally on Cobalt's Risk Hub, extending credit to third party platforms such as 24 Exchange. 24X is the first platform to offer its clients access to Cobalt's full suite of automated credit limits and controls, including designation notices, and credit optimisation.
"As we roll out streaming liquidity in higher credit risk products such as FX Swaps, NDFs and Digital Assets, we needed our clients to feel 100% comfortable in their risk exposure," adds Galinov. "Integrating with Cobalt gives the banks control and confidence to push credit out to 24 Exchange."
Andy Coyne, Co-Founder and Head of Product at Cobalt, commented, "Dynamic Credit is a very important step for the FX and Digital Asset markets. It eliminates the risk of over allocation. It also protects credit providers while optimising market access for clients. This is a real game changer, solving very real problems that have affected the market for years. Combining our solutions with forward thinking venues like 24 Exchange ensures that efficiency doesn't require sacrificing security."
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