Cobalt DL, the FX post-trade processing network based on distributed ledger technology, has announced a partnership with LMRKTS, who will be the first firm to offer services on its BlueSky service, the shared ledger component of Cobalt's platform.
Cobalt delivers a private peer-to-peer network that can reduce post-trade costs and risk for institutions operating in FX markets. The Cobalt platform is designed to create a single, shared view of a transaction on shared infrastructure and can help clients to reduce reconciliation and operational costs by up to 80%.
Cobalt BlueSky enables third party technology providers to develop their own applications based on access to the database of reconciled transaction data created by the Cobalt network. Access by these technology partners to the BlueSky database will be subject to governing legal service agreements with Cobalt participants who retain control over their data.
LMRKTS provides multi-lateral portfolio compression that can drive down exposures and reduce costs for participants in different asset classes and applications. Because it is delivered as an analytic that bolts on to existing and new infrastructure, it provides both scale and processing to LMRKTS' clients. By partnering with Cobalt BlueSky, LMRKTS aims to offer improved multi-lateral compression services to the broader group of Cobalt's ledger members as well as existing LMRKTS customers. LMRKTS will use Cobalt's reconciled transaction data to drive compression algorithms.
In the future, Cobalt BlueSky will enable partners to provide services such as risk analytics, transaction cost analysis, regulatory reporting or clearing.
Adrian Patten, Co-Founder and Chairman of Cobalt, said: "We are delighted to welcome LMRKTS as a BlueSky partner. Our partnership brings together 18 of the leading FX participants to take advantage of LMRKTS improved compression services and is the next step in our mission to cut costs and reduce risk for all market participants. We look forward to increasing the number of collaborations over the coming weeks and months".