Noble Bank International (NBI), the first non-fractional reserve bank, is officially announcing the launch of Noble FX. With this launch, Noble introduces its initial service for real-time post-trade banking for OTC markets.
NBI allows clients to create their own pools of credit, enabling counterparties to clear, net and settle spot FX and precious metals transactions in real-time. The fully customizable and configurable rules that guide each pool represent a truly revolutionary step towards greater flexibility and functionality in post-trade.
Over the past few years, decreased access to credit, clearing and counterparties have constrained FX and OTC markets and trading. Increased fragmentation, expensive post-trade mechanisms, and burdensome regulatory capital requirements have forced traditional providers to reduce their client lists, reduce credit to existing clients, or entirely exit the market.
The three themes championed at Noble are:
1. Simplify the post-trade workflows for FX and OTC transactions
2. Connect institutional participants in a Peer-to-Peer manner
3. Reduce risk and cost by creating transparency and enabling real-time clearing, netting, and settlement
John Betts, CEO of Noble said:
Our goal is to help the FX and OTC markets with increased credit access and decrease post-trade costs, rather than replace any traditional providers of these services including prime brokers or exchanges. We strongly believe there is a great opportunity to help those providers service more clients at better margins by partnering with them.
With the Noble FX service, clients can be live in as little as one week. Joining a credit pool is as simple as signing on to the established rulebook. Creating a pool is just as easy. After configuring a rule book, clients invite participants to join while Noble seamlessly enables all the post-trade workflows. With fees below $5 per $1mm transacted and no minimum ticket sizes or fees, the savings are substantial.
Alan Bozian, former President and CEO at CLS and Board Member at Noble said:
Noble’s FX service not only provides a fair and open-access post-trade solution but will likely be a catalyst for positive change in the FX market. This is a step forward in the industry for positive change and lower risk.
Breakdown of the Noble FX service, how it reduces the friction in the FX markets and enabled broader access to post-trade services.