Spotex Partners With Cobalt For Realtime Credit Management

February 18, 2021 - FX and Digital Asset risk and settlement infrastructure provider, Cobalt, has partnered with Spotex, the developer of FX technology solutions, to provide clients with dynamic credit management tools. Through the partnership Cobalt’s Risk Hub will be available for clients of Spotex’s FX electronic communication network (ECN).

Cobalt’s Risk Hub provides centralised management of real-time updates of exposure and credit risk. Spotex is the latest partner to offer its clients access to Cobalt’s full suite of automated real-time credit limits and controls, including designation notices, and credit optimisation. Earlier this month, 24 Exchange announced that it has deployed Risk Hub to offer its clients dynamic risk management on its NDF and SpotFX trading platform.

In today's press release, the companies stated that, "By providing a solution to the overallocation of credit, the Cobalt and Spotex partnership directly addresses ongoing pressure points in the FX markets. Both companies alleviate the risks of legacy technology while protecting clients’ exposure by providing automated monitoring solutions."

Darren Coote, CEO of Cobalt said, “As today’s FX markets continue to evolve, new technology is needed to solve old problems with credit management front and centre. Our work with Spotex in consolidating our dynamic credit offering is doing precisely that. Through the partnership, we are able to deliver our suite of real-time automated credit management and monitoring tools to more market participants at a time where transformation is gathering speed.”

John Miesner, Spotex CEO said, “Credit runs at the very heart of our markets – but often, the details of managing credit opens up too much risk and unwanted exposure for banks and intermediaries. With Cobalt, we are able to provide our FX clients with a complete real-time picture of their risk. Through our low-latency technology, we are providing banks and financial institutions with a very tangible solution for the age-old credit problems in FX. Additionally, as we broaden our product offerings, specifically in NDF’s & FX Forwards, along side the Cobalt infrastructure, partnering with Cobalt was a logical decision. Furthermore, as Digital Asset opportunities continue to grow, we feel Cobalt’s existing involvement in the Digital space will be beneficial to Spotex as we enter this arena."

London-based Cobalt, founded in 2015, facilitates a confirmed, shared and normalized portfolio of trade data that frees up resources currently devoted to reconciliation by ensuring that there is only one immutable version of each contract. From the ledger of normalized FX contracts, Cobalt is then able to offer added lifecycle services such as netting and aggregation. Cobalt relies on First Derivatives owned KX Systems kdb+ high-performance time-series database as its primary data store.