Under the agreement Baton’s payments infrastructure will be combined with Cobalt’s middle office platform to provide an end-to-end FX settlement solution. 

Foreign exchange market infrastructure is widely recognised as being in need of modernisation. Over the past few years, Baton and Cobalt have been at the forefront of promoting the shift to automated solutions to mitigate risk and improve efficiency, boasting some of the largest financial institutions as their clients and backers. 

Cobalt has developed a middle-office platform capable of creating a single standardised version of each transaction which enables clients to connect and automate their FX processing functions. Including confirmations, trade netting, and the management of credit relationships. 

Baton’s payments infrastructure integrates with financial institutions’ current collateral and cash systems, while leaving their existing business processes, systems, and ledgers in place. It then provides a customisable software workflow engine to coordinate among multiple systems and institutions, achieving improved  settlement by moving real assets in real accounts, along with instant reconciliation and reporting for all parties.