SGX invests in FX post-trade processing network Cobalt

THE Singapore Exchange (SGX) has made an investment to buy a stake in foreign exchange (FX) post-trade processing network Cobalt.

Cobalt said in a press release that the SGX investment will support its continued expansion into the FX space, further accelerating technology development and the build-out of the team.

The exchange declined to disclose the size of the investment.

Cobalt creates a single, shared view of a transaction for its customers, freeing up back and middle office resources that currently have to reconcile across multiple systems.

Its chief executive and co-founder, Andy Coyne, told Euromoney in July last year that more than 20 institutions have signed up with the firm, including three of the top five FX trading banks in the world and two of the world's largest non-bank FX trading firms.

Cobalt's backers reportedly include Citigroup, First Derivatives and Digital Currency Group.

Its chairman and co-founder, Adrian Patten, said SGX's investment is testament to its innovative application of technology in the FX space.

"Our platform addresses pain points faced by almost every institution that trades FX: the unnecessary cost and risk associated with post-trade processing," he said in a statement. "Singapore is an important global hub for FX and we are delighted to welcome SGX on board as we continue to expand our footprint in the region."

SGX head of derivatives Michael Syn said Cobalt's important FX market infrastructure is complementary to its growing FX futures business, and "a natural fit" for SGX given its commitment to product and platform innovation.

"We look forward to seeing Cobalt continue to gain traction in the global post-trade FX market as they pioneer FX technology development, delivering cost and risk mitigation benefits to market participants across the world," he added.