BNP Paribas, NatWest, Live on CobaltFX

CobaltFX has announced that BNP Paribas and NatWest are now both live on the firm’s Dynamic Credit platform that helps firms manage credit exposures in FX.

Both banks have been partners of Cobalt for multiple years, NatWest went live on the firm’s Finality platform in August 2022. The Dynamic Credit platform solves for what CobaltFX founder Andy Coyne told The Full FX Scandinavia conference earlier in May, is a “very real and current problem” for banks who continue to over-allocate credit to their FX business lines.

The problem CobaltFX is solving is essentially simplifying and streamlining many of the manual processes tied to allocation of credit which creates challenges for financial institutions, for example, leveraging tech to enhance market stability,” Coyne explains. “Thus, correcting the supply of credit and at the same time deepening the availability of liquidity, CobaltFX’s Dynamic Credit technology ensures that for less credit deployed, there is more liquidity, administrative simplification and, essentially, superior market access control – the latter being a key factor for financial institutions around the world.”

Joe Nash, Digital COO for FX, Rates and commodities at BNP Paribas, adds, “Industry-wide, we see that banks are adopting innovative techniques to manage credit exposures for FX trades and maintain market stability through digitalisation. CobaltFX’s solution offers a much-needed improvement to the manual process of updating credit limits with interbank trading venues.

“By providing a standardised and digitised approach, and aggregating IT infrastructure across multiple venues, Dynamic Credit gives banks unprecedented control to navigate fast-moving FX markets and proactively manage credit exposure,” he continues. “This is a very important step in delivering a solution for credit providers, taking full advantage of new technical advancements.”