CobaltFX Launches Alternative Trade Notification Network to Fix Single Point of Failure in FX Industry

CobaltFX, the provider of critical risk and data services to the FX and digital asset markets and part of United Fintech, announced the introduction of Trade Notification Network (TNN), aiming to address the growing concerns amongst financial institutions about Single Points of Failure (SPoF) in FX post-trade messaging.

This new alternative service is free of charge, designed to de-risk FX and deal with lack of competition for FX post-trade messaging stemming from decades of industry consolidation in the world's effectively largest market.

"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," said 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".

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.

"The introduction of the TNN is poised to eliminate the "Hobson's choice" that has defined the FX industry's service offering until now. 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", added Andy Coyne.

In May, Fazzaco reported​ that banking giants, BNP Paribas and NatWest have adopted CobaltFX's Dynamic Credit, a solution designed to optimize the allocation of credit for FX, to simplify and streamline the allocation of credit for FX transactions between banks and improve access to liquidity.