CobaltFX Unveils Partnership with 360T SUN

Just two weeks after announcing a similar partnership with 24 Exchange, United Fintech’s CobaltFX says it is now connected to 360T’s Swaps User Network (SUN) to allow participants to access its dynamic credit model.

The deal means 360T SUN, which already offered FIX API and a pre-trade limits monitor tool to remove the need for manual credit checks, is now also able to leverage CobaltFX for dynamic credit allocation. This removes the need for participants to allocate blocks of credit to certain venues, meaning the credit can be more efficiently distributed, specifically to where it is needed.

360T says it has been working with Cobalt to develop its Potential Future Exposure model, to help evolve the original spot-focused process, into FX swaps and forwards. This means that not only can traders execute in a more automated fashion in swaps, but that 360T will not be hamstrung by a lack of access to credit for certain counterparties if trading gets particular busy on the platform. This is highlighted by Robin Nicholas, head of swap product at 360T, who says, “This partnership with CobaltFX provides an additional way to address what has historically been the primary challenge for sell-side firms seeking to leverage the 360T SUN platform to minimise costs, reduce operational risks and utilise capital efficiently – access to credit.”

Darren Coote, CEO of CobaltFX, adds, “This partnership with 360T SUN directly aligns with CobaltFX’s goal of providing innovative new market infrastructure solutions designed to enable global financial institutions to access deeper liquidity, while also deploying less credit and minimising operational risk.”

Meanewhile, Andy Coyne, founder of CobaltFX, says, “We recognised that FX market participants looking to trade FX swaps in an automated fashion needed additional tools for dynamically managing credit, not just across spot FX but also forwards, and were duly able to deliver a first-of-its-kind solution to enable this.”