TECHNOLOGY

Citadel Securities joins Citi on Cobalt’s post-trade FX blockchain network

Cobalt's post-trade service now has 22 beta partners and the firm has expanded with a new office in New York.

By Hayley McDowell hayley.mcdowell@strategic-i.com May 11, 2017 9:10 AM GMT

Citadel Securities has signed up to use FX blockchain firm Cobalt’s FX post-trade service, due to launch later this year.

The post-trade service now has 22 market participants signed up and four technology partners including SETL, First Derivatives, Tradepoint.

Last year, Cobalt announced it had secured Citi as an investor and the bank joined Cobalt’s FX post-trade tool, which is currently in beta testing on a private peer-to-peer blockchain enabled network.

Cobalt claims the use of blockchain for FX will significantly reduce risk and cut post-trade costs by up to 80%, with current processes seeing FX market participants incur multiple unnecessary license fees, IT overheads and staff costs.

Cobalt has also expanded its core team with the opening of a new office in New York.

Several hires have been made to support the expansion, including Devika Darbari from JDX Consulting as COO and Jon Light from Markit as head of product.

Adrian Patten, co-founder and chairman of Cobalt, explained the expansion and addition of Citadel Securities has set Cobalt on a ‘strong growth trajectory’.

Kevin Kimmel, global head of eFX at Citadel Securities, added: “We support efficient, fair and transparent markets and believe that Cobalt’s platform is an important step in enhancing FX market efficiency, particularly around credit and clearing.”