Cobalt, the foreign exchange (forex) post-trade infrastructure, has announced that Citi bank is the latest market player to support its infrastructure, and intends to go live on its infrastructure for bilateral trading.
Specifically, Citi has invested in and backed the technology company. The partnership is similar to Cobalt’s partnerships with Deutsche Bank, XTX Markets and Saxo Bank.
Furthermore, the company revealed that it is in talks with a number of banks, with more signings due to be announced in the coming weeks.
The purpose of Cobalt is to redesign post-trade forex infrastructure and processes. To do this, the system’s automated technology matches all versions of a trade into one ‘trusted copy.’
By creating a trusted copy, the infrastructure generates one unchangeable data set of FX transactions. This is at odds with the current industry practice, where a single trade today creates multiple records for all parties. This leaves more room for error and inconsistencies throughout lifecycle events.
When Cobalt launched its post-trade infrastructure last year, it did so with the help of more than 20 financial institutions. At the time, many of these companies were being onboarded to the platform.
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