BNP Paribas, an early adopter of CobaltFX’s Dynamic Credit, has announced that it is further expanding its engagement with CobaltFX, part of United Fintech, to address regulatory and industry concerns, setting a new standard for precision and effectiveness in market operations.
Following the onboarding of Dynamic Credit, BNP Paribas has expanded the solution to simplify and streamline the allocation of credit for FX transactions between banks and improve access to liquidity. Now covering over 100 counterparty banks, BNP calculates Dynamic Credit across 12 Electronic Communication Networks (ECNs), optimising global credit and eliminating carve-outs.
This strategic expansion underscores BNP Paribas’s commitment to innovation and efficiency in credit allocation, enhancing market access for Financial Institutions worldwide. By harnessing the power of CobaltFX’s Dynamic Credit and the newly developed CobaltFX Analytics, BNP Paribas addresses regulatory concerns and sets a new standard for precision and effectiveness in market operations.
Joe Nash, Head of Global Macro Digital at BNP commented,
“We see this as an important initiative to address regulatory and industry body concerns about the over-allocation and inefficiencies of credit distribution on dealer to dealer venues. Moreover, this approach, combined with CobaltFX Analytics allows us to right size our limit for each counterparty whilst improving market access with them.”
Darren Coote, CEO of CobaltFX, part of United Fintech expressed:
“This systemic problem has been long over-looked but there are a group of leaders in the industry that understand the benefits of this unique approach. We are very grateful for BNP’s leadership in this regard.”
About CobaltFX
CobaltFX is in the business of re-engineering the world of Foreign Exchange by giving control back to all credit providers and mutualising post-trade operational risk. The shared infrastructure is designed for maximum efficiency, facilitating better market access through trade life-cycle mutualisation and knowledge of market interconnectedness.
Founded in 2015, CobaltFX is headquartered in London, UK, and is part of United Fintech, an industry-neutral Digital Transformation platform where global Financial Institutions and cutting-edge technology providers come together to unleash their full potential and enable the future of finance.
