The development will see the trading platform leverage CobaltFX’s Dynamic Credit process to achieve more flexible and scalable trade execution by optimising credit intermediation, reducing operational risk and enhancing liquidity efficiency.  

24 Exchange has said that the partnership will allow counterparties to pre-set credit relationships and allocate available credit based on real-time trading conditions.   

Jason Woerz, president of 24 Exchange, said: “We are thrilled to be live with FX swaps trading and to offer our clients a more efficient, cost-effective trading environment. The collaboration with CobaltFX, allows us to redefine how credit is managed in the FX market, giving participants unprecedented access to liquidity.” 

Cobalt relaunched as CobaltFX following its acquisition in December 2022 by United Fintech, with a complete focus on foreign exchange in what chief executive Marc Levin described at the time as “returning to the company’s roots”.

This latest development is also expected to address challenges which often face the FX swaps market, including credit limitations, operational inefficiencies, pre-funding constraints and settlement risks to allow traders to access deeper liquidity pools and execute larger trades.

Read more – BNP Paribas expands CobaltFX relationship to streamline bank credit allocation

“24 Exchange’s adoption of our Dynamic Credit process is a testament to its ability to revolutionise credit management in FX markets,” said Darren Coote, chief executive of CobaltFX. 

“By optimising credit usage in real-time, we are helping the industry reduce risk while increasing efficiency and transparency.” 

In November 2024 the US Securities and Exchange Commission approved 24 Exchange in an effort to “significantly expand trading outside of regular trading hours” for NMS stocks. 

The post 24 Exchange launches live swaps trading through CobaltFX partnership appeared first on The TRADE.

As part of the investment, the global head of FX trading at Standard Chartered, Geoff Kot, will join the board of directors at 24 Exchange. Terms of the deal were not disclosed.

Launched last year by former CEO of the FX spot market operator FastMatch, Dmitri Galinov, the multi-asset, multi-dealer FX derivatives trading platform aims to reduce the costs of trading and eliminates market costs, with access to liquidity 24-hours a day.

“Standard Chartered Bank has already proven to be a great strategic partner as our central clearer and trading participant. We look forward to expanding our partnership and to benefiting from Geoff’s considerable experience,” said the startup’s founder, Galinov. 

The two companies partnered up last year to provide a central prime broker model that aimed to lower margins for clients. 24 Exchange said at the time the partnership solves regional liquidity splitting issues by creating a single liquidity pool for non-deliverable forwards (NDFs) for clients globally.

“We are excited about this strategic partnership at Standard Chartered, working with 24 Exchange to promote innovation and continued evolution in FX markets,” added Kot. “Dmitri and his team have a wealth of experience in leveraging technology effectively across different asset classes, and this offering aligns with our strategy to continue to provide improved pricing and liquidity for our clients and counterparties.”

Lat year, Standard Chartered became a liquidity provider for FX options trading firm Digital Vega to support its clients increasingly adopting electronic trading methods. More recently,  the banking group became the latest major institution to sign up to the FX post-trade technology network from Cobalt for centralised and automated post-trading processes.

The post Standard Chartered invests in FX derivatives startup 24 Exchange  appeared first on The TRADE.