360T has entered into a partnership with CobaltFX to increase the number of credit models available on its Swaps User Network (SUN). The collaboration is focused on improving automation and credit management for FX Swaps trading.

360T is a provider of Foreign Exchange (FX) trading platforms. CobaltFX is a technology company that develops infrastructure tools for the financial markets. It is part of United FinTech.

Credit Model Added to SUN

“This partnership with 360T SUN directly aligns with CobaltFX’s goal of providing innovative new market infrastructure solutions designed to enable global Financial Institutions to access deeper liquidity, while also deploying less credit and minimising operational risk,” Darren Coote, CEO of CobaltFX, commented.

The Swaps User Network, also known as SUN, allows market participants to trade FX Swaps using a FIX API and a pre-trade Limits Monitor tool. These tools help remove the need for manual credit checks. They support automated execution in the FX Swaps market.

You may want to read it at FinanceMagnates.com: Forex Credit Gets Real-Time Upgrade as 24 Exchange Teams With CobaltFX.

CobaltFX, 360T Target Swaps Automation

The new partnership will add support for dynamic credit allocation using CobaltFX’s technology. CobaltFX originally built a model to let users apply a single credit limit across different trading venues for Spot FX. The model works across ECNs and Single-Dealer Platforms.

The company has now worked with 360T to expand this model for use in Forward FX. The new model is based on Potential Future Exposure (PFE). It allows firms to manage and optimise Forward limits in real-time. This helps traders execute more efficiently on 360T’s SUN platform.

The development is aimed at increasing automation and reducing operational risks for institutions trading FX Swaps.

“360T SUN tackles one of the key challenges in FX Swaps automation—credit line management—by offering bilateral automated credit models that remove the need for manual credit checks,” said Sebastian Hofmann-Werther, Chief Revenue Officer FX & Digital and Head of EMEA at 360T.

“The platform now also integrates with CobaltFX’s dynamic credit allocation, expanding its credit model options and making it easier for market participants to access continuous mid-market streaming prices for FX Swaps.”

This article was written by Tareq Sikder at www.financemagnates.com.Institutional FXRead More

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