BNP Paribas expands CobaltFX relationship to streamline bank credit allocation

Expanded partnership will help BNP Paribas address “regulatory concerns and set a new standard for precision […] in market operations”.

BNP Paribas has expanded its relationship with CobaltFX, part of United Fintech, in a bid to enhance market liquidity by streamlining allocation for credit for FX transactions between banks.

Joe Nash

As part of the expanded relationship BNP Paribas has onboarded CobaltFX’s solution Dynamic Credit. It will also gain access to CobaltFX analytics.

A statement released by the pair said the new capabilities would allow BNP Paribas to address “regulatory concerns and set a new standard for precision and effectiveness in market operations”.

“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,” said Joe Nash, head of global macro digital at BNP. 

“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

BNP now covers 100 counterparty banks and calculates dynamic credit across 12 electronic communication networks (ECNs).

Darren Coote, CEO of CobaltFX, part of United Fintech said: “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.”