CobaltFX Launches Trade Notification Network
Posted by Colin Lambert. Last updated: November 9, 2023
As reported by The Full FX in October, CobaltFX is formally launching its Trade Notification Network (TNN) to provide an alternative to Triana’s Harmony, which is owed by Osttra.
The service will be provided for free, with users potentially paying for value-added services provided by the company. CobaltFX sees the launch as a response to growing concerns over a Single Point of Failure (SPoF) risks in the FX industry, as discussed in this recent column.
“Recent incidents, such as consolidation and a hack that disrupted market operations earlier this year, have raised concerns among major global banks about the inherent risks associated with SPoFs in FX operations and this has been a major call to action for us in launching the TNN,” explains Andy Coyne, founder of CobaltFX. “Further to that, we strongly believe that post-trade messaging is not a service that should be charged for. In the 21st century, messaging should be free and only value-added services that use that data should be chargeable.”
Coyne warns that the potential consequences of a catastrophic cyber security scenario are far more severe than what is currently being reported publicly by financial institutions and industry observers alike, arguing many of the world’s largest banks are currently over-exposed, leaving them vulnerable without an alternative or backup plan.
To address the issue in the FX industry, CobaltFX says its launch of the TNN will provide banks with a genuine choice in post-trade FX messaging and backup plan in the event of cyberattacks or other forms of failure in the FX market – and essentially enable the industry to break free of the “Hobson’s choice” it has been caught-up in for decades.
“The FX market, by sheer trading volume, is amongst the world’s largest markets, making the need for comprehensive solutions even more pressing,” Coyne argues. “Imagine if banks’ only messaging network all of a sudden came to a halt amid FX trading; this could stop trading completely.
“The introduction of the TNN is poised to eliminate the “Hobson’s choice” that has defined the FX industry’s service offering until now,” he continues. “It represents a significant step forward in bolstering the industry’s resilience against systemic risks – and by effect the safeguarding of the entire financial ecosystem.”