CobaltFX, a part of United Fintech, has launched a trade notification network (TNN) in response to concerns around single points of failure (SPoFS) across the industry.
According to CobaltFX founder Andy Coyne, financial institutions are currently overexposed to cyberthreats and need to have an alternative solution ready to go in the event of an attack or other form of failure.
The firm’s new product equips banks with a choice in post-trade FX messaging, and provides the security of a backup plan.
Coyne comments: “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.
“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.”
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