BOSTON--(BUSINESS WIRE)--
State Street Corporation (NYSE: STT), one of the world’s leading
providers of financial services to institutional investors, announced
today that it has launched a new service for the Exchange Traded Fund
(ETF) market to help clients process ETF orders more efficiently and in
an automated and streamlined fashion. As ETFs have continued to grow in
popularity and in number, the complexity involved in servicing ETFs has
increased significantly.
ETFs currently account for more than $1 trillion in global assets under
management and remain an efficient, low-cost, transparent and
tax-friendly investment tool. With State Street’s Assisted Trading
service, authorized participants, typically market makers or specialists
who obtain the underlying assets to create ETFs, can simultaneously
enter the ETFs they want to trade and identify any restricted shares via
State Street’s FundConnect platform. Restricted shares are securities
that are not eligible for proprietary trading and change daily based on
underwriting, mergers, investments and other activities. Previously, the
method for identifying restricted shares within ETFs was manual and
intensive. Using this capability, the restricted shares are segregated
and sent to State Street Global Markets, the company’s investment
research and trading arm, to be traded. This process ensures that the
authorized participant is completely in compliance with all regulatory
and exchange requirements when trading ETFs.
“Since 1993, State Street has differentiated itself among other ETF
service providers through its leading-edge technology, consultative
client approach and flexible servicing model to service ETFs,” said
Frank Koudelka, senior vice president at State Street Global Services.
“Our new offering automates the way in which clients handle restricted
securities, making it a seamless process with a clear audit trail that
facilitates compliance with regulatory requirements.”
The Assisted Trading service is accessed through FundConnect, State
Street’s online trading platform for ETFs, which is integrated with
State Street’s transfer agency recordkeeping platform. The transfer
agent releases the approved orders to the ETF accounting platform and
the depository via DTCC Fast.
About State Street
State Street Corporation (NYSE: STT) is one of the world's leading
providers of financial services to institutional investors including
investment servicing, investment management and investment research and
trading. With $19 trillion in assets under custody and $1.8 trillion in
assets under management at June 30, 2010, State Street operates in 27
countries and more than 100 geographic markets worldwide. For more
information, visit State Street’s web site at www.statestreet.com.
Source: State Street Corporation
Contact:
State Street Corporation
Alicia Curran Sweeney, + 1 617-664-3001