Expands Options for Clients in New Regulatory Environment
BOSTON--(BUSINESS WIRE)--
State Street Global Markets, the investment research and trading arm of
State Street Corporation (NYSE:STT), announced that it has joined CME
Group for clearing of over-the-counter interest rate swaps effective
August 24, 2012.
The Dodd-Frank Act in the US and similar measures in Europe mandate
centralized trading and clearing to increase transparency and help
reduce risk in OTC derivatives markets. State Street’s membership in CME
Group expands the clearing options available to clients amid this
changing regulatory environment.
“As derivative markets evolve, State Street’s membership provides
buy-side clients with a new, neutral model for trading, clearing and
processing of their swap positions,” said Cliff Lewis, executive vice
president and head of State Street’s eExchange business. “Joining CME
Group, one of the world’s leading derivatives marketplaces, is an
important step towards offering a fully comprehensive, end-to-end
derivatives solution for our clients.”
CME Group membership is the latest move by State Street to prepare for
the new regulatory regime for OTC derivatives. In 2011, State Street
announced its intention to expand its futures commission merchant
services to cover swap clearing capabilities and announced DerivOneSM,
its end-to-end derivatives servicing offering. In 2012, State Street
launched SwapEx, an execution platform for the trading of derivatives
products. Together, these services are designed to reduce operational
risk through the automation of the many stages of derivatives
processing, including execution, clearing, collateral management, cash
and securities flow between the middle and back offices, transaction
cost and risk reporting, valuations, and the reconciliation of positions.
“We are pleased that State Street has joined CME as an OTC IRS clearing
member,” said Kim Taylor, President, CME Clearing. “As we continue to
work with both the buy- and sell-side to identify capital and
operational efficiencies for all market participants, we also are very
pleased to continue to offer market participants a diverse pool of
clearing membership as they transition to central clearing.”
About State Street Corporation
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 $22.4 trillion in assets under custody and administration
and $1.9 trillion in assets under management at June 30, 2012, State
Street operates in 29 countries and more than 100 geographic markets.
For more information, visit State Street’s web site at www.statestreet.com.
*This AUM includes the assets of the SPDR Gold Trust (approx. $65.7
billion as of June 30, 2012), for which State Street Global Markets,
LLC, an affiliate of State Street Global Advisors, serves as the
marketing agent.
Derivative investments may involve risks such as potential illiquidity
of the markets and additional risk of loss of principal.
The products and services referenced are only offered to professional
clients or eligible counterparties. Clearing services are offered
through SSGM, LLC, which is a member of FINRA, SIPC, and the NFA, and is
an affiliate of State Street Bank and Trust Company.
This communication is provided for informational purposes only and
should not be considered a recommendation relating to any particular
investment or investment strategy. It does not take into account any
investor's particular investment objectives, strategies or status, nor
is it intended to replace an independent review of our products and
services prior to making any decision regarding their utilization.
The products and services may not be available in all jurisdictions.
Please contact your sales representative or State Street Global Markets,
LLC at 1 800 892 4514 for information.
CORP-0569
State Street Corporation
Alicia Curran Sweeney, +1-617-664-3001
www.statestreet.com
Source: State Street Corporation