Cost Savings Analysis

Cobalt has modelled the impact of adopting a centrally automated post-trade infrastructure. We work with clients and their real trade data and specific transactional costs to show where Cobalt’s solutions will reduce post-trade costs. Taking a realistic approach, we look at our members’ network of counterparties and an adoption plan to start realising cost savings from day one and building to reduce costs significantly over a short to medium-term plan.

Through a module approach to adopting the right solutions, we help members build the business case and set real expectations on the ROI of the project to move to a centrally automated operational technology.

Cobalt’s analysis of trade data from multiple banks shows a typical saving of 50% on post-trade transactional, third party vendor and resource related cost, with further savings to be realised once legacy technology stacks are decommissioned.

Indication of savings amongst members are:

Messaging and Matching: 80-90%
Confirmations: 100%
NON-CLS settlement fees: 40%
Nostro Fees: 80-90%
Reconciliations & Disputes: 95%
Fragmented Credit Systems: 100%
Separate prime broker systems: 100%
Balance sheet usage: Reducing collateral requirements by optimisation of credit lines