Credit is an issue across the foreign exchange market, as lack of transparency in traditional operations means that institutions may be unable to manage their credit lines efficiently. Banks are looking to change the way they operate to make middle and back-office functions more efficient.
Sucden Financial has announced that it has now access to Cobalt’s range of middle and back office trade solutions, including its Core Credit module. The company is accessing Cobalt’s broad range of services via IHS Markit’s connectivity service.
Last year, Citi stated it would be scaling back the number of platforms it trades on to save costs and earlier this month, the bank announced its intention to go live on Cobalt’s centralised infrastructure for bilateral trading.
Cobalt’s Core Credit solution offers a centralised credit management tool for all relationship types, including bilateral and primed flow, and be used by banks, prime brokers, prime clients and direct clients. This allows owners of credit to gain control and manage lines more efficiently and ensure all users have real time monitoring tools.
Gavin Parker, COO from Sucden Financial, commented on the news:
We continually enhance our services, utilising the latest technology to increase efficiencies for clients. Cobalt provides an exciting cutting-edge solution, enabling us to further expand our institutional FX offering.
Darren Coote, CEO of Cobalt, said:
Credit management within FX has long been a problematic area for all market participants. With further adoption of Cobalt’s technology across a variety of market participants, we are working towards centralised infrastructure for the future of FX.
Other institutions that are already live on Cobalt include Deutsche Bank, XTX Markets and Saxo Bank.