State Street to Acquire Pulse Trading
September 21 2011 - 9:04AM
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 entered into an agreement to acquire
Pulse Trading, Inc. The deal is expected to close in the fourth
quarter of 2011, pending regulatory and other closing
conditions.
Pulse Trading is a full service agency brokerage firm
headquartered in Boston with a range of electronic trading
capabilities that include block crossing and blotter scraping
technology. The transaction includes the acquisition of Pulse
Trading’s institutional equities business and approximately 40
employees in Boston, New York, St. Louis and San Francisco.
“We look forward to joining State Street where we will continue
bringing best-in-class trading technology to our institutional
clients,” said Christian Dubois, managing partner at Pulse Trading.
“The combination of our products with State Street’s scale and
institutional client base will allow us to expand our reach.”
“The acquisition of Pulse Trading is a natural extension of
State Street Global Markets’ neutral, agency model,” said David
Puth, executive vice president of State Street Global Markets.
“Pulse Trading’s sophisticated technology and block trading
capabilities will expand the number of execution venues and the
range of electronic trading tools available to our clients and
ultimately help lower their trading costs.”
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 $22.8 trillion in assets
under custody and administration and $2.1 trillion* in assets under
management at June 30, 2011, State Street operates in 26 countries
and more than 100 geographic markets worldwide. For more
information, visit State Street’s website at
www.statestreet.com.
*This AUM includes the assets of the SPDR Gold Trust (approx.
$58 billion as of June 30, 2011), for which State Street Global
Markets, LLC, an affiliate of State Street Global Advisors serves
as the marketing agent.
About Pulse Trading
Pulse Trading, Inc. is a national agency brokerage firm offering
a broad range of services to meet the high demands of
institutional investors seeking best trade executions, investment
technology and customer support in today’s fast-changing securities
markets.
Forward-Looking Statements
This news release contains forward-looking statements as defined
by United States securities laws, including statements relating to
our agreement to acquire Pulse Trading, Inc. and the impact of that
acquisition and related rationales, as well as about our goals and
expectations regarding our business, financial condition, results
of operations, investment portfolio performance and strategies, the
financial and market outlook, governmental and regulatory
initiatives and developments, and the business environment.
Forward-looking statements are often, but not always, identified by
such forward-looking terminology as "plan," "expect," "look,"
"believe," "anticipate," "estimate," "seek," "may," "will,"
"trend," "target,” and "goal," or similar statements or variations
of such terms. These statements are not guarantees of future
performance, are inherently uncertain, are based on current
assumptions that are difficult to predict and involve a number of
risks and uncertainties. Therefore, actual outcomes and results may
differ materially from what is expressed in those statements, and
those statements should not be relied upon as representing our
expectations or beliefs as of any date subsequent to September 21,
2011.
Important factors that may affect future results and outcomes
include, but are not limited to:
- the ability to obtain regulatory
approvals for the transaction announced in this news release and
the satisfaction of other closing conditions for that
transaction;
- the risks that acquired businesses will
not be integrated successfully, or that the integration will take
longer than anticipated, that expected synergies will not be
achieved or unexpected disynergies will be experienced, that client
and deposit retention goals will not be met, that other regulatory
or operational challenges will be experienced and that disruptions
from the transaction will harm relationships with clients,
employees or regulators;
- the manner in which the Federal Reserve
and other regulators implement the Dodd-Frank Act and other
regulatory initiatives in the U.S. and internationally, including
any increases in the minimum regulatory capital ratios applicable
to us and adjustments that result in changes to our operating model
or other changes to the provision of our services in order to
comply with or respond to such regulations;
- required regulatory capital ratios
under Basel II and Basel III, in each case as fully implemented by
State Street and State Street Bank (and in the case of Basel III,
when finally adopted by the Federal Reserve), which may result in
the need for substantial additional capital or increased levels of
liquidity in the future;
- changes in law or regulation that may
adversely affect our, our clients’ or our counterparties’ business
activities and the products or services that we sell, including
additional or increased taxes or assessments thereon, capital
adequacy requirements and changes that expose us to risks related
to compliance;
- financial market disruptions and the
economic recession, whether in the U.S. or internationally;
- the liquidity of the U.S. and
international securities markets, particularly the markets for
fixed-income securities, and the liquidity requirements of our
clients;
- increases in the volatility of, or
declines in the levels of, our net interest revenue, changes in the
composition of the assets on our consolidated balance sheet and the
possibility that we may be required to change the manner in which
we fund those assets;
- the financial strength and continuing
viability of the counterparties with which we or our clients do
business and to which we have investment, credit or financial
exposure;
- the credit quality, credit agency
ratings, and fair values of the securities in our investment
securities portfolio, a deterioration or downgrade of which could
lead to other-than-temporary impairment of the respective
securities and the recognition of an impairment loss in our
consolidated statement of income;
- delays or difficulties in the execution
of our previously announced business operations and IT
transformation program, which could lead to changes in our
estimates of the charges, expenses or savings associated with the
planned program, resulting in increased volatility of our
earnings;
- the maintenance of credit agency
ratings for our debt and depository obligations as well as the
level of credibility of credit agency ratings;
- the ability to complete acquisitions,
divestitures and joint ventures, including the ability to obtain
regulatory approvals, the ability to arrange financing as required
and the ability to satisfy closing conditions;
- the performance of and demand for the
products and services we offer, including the level and timing of
redemptions and withdrawals from our collateral pools and other
collective investment products;
- the possibility that our clients will
incur substantial losses in investment pools where we act as agent,
and the possibility of significant reductions in the valuation of
assets;
- our ability to attract deposits and
other low-cost, short-term funding;
- potential changes to the competitive
environment, including changes due to the effects of consolidation,
and perceptions of State Street as a suitable service provider or
counterparty;
- the level and volatility of interest
rates and the performance and volatility of securities, credit,
currency and other markets in the U.S. and internationally;
- our ability to measure the fair value
of the investment securities on our consolidated balance
sheet;
- the results of litigation, government
investigations and similar disputes or proceedings;
- our ability to control operating risks,
data security breach risks, information technology systems risks
and outsourcing risks, and our ability to protect our intellectual
property rights, the possibility of errors in the quantitative
models we use to manage our business and the possibility that our
controls will prove insufficient, fail or be circumvented;
- adverse publicity or other reputational
harm;
- our ability to grow revenue, attract
and/or retain and compensate highly skilled people, control
expenses and attract the capital necessary to achieve our business
goals and comply with regulatory requirements;
- the potential for new products and
services to impose additional costs on us and expose us to
increased operational risk;
- changes in accounting standards and
practices; and
- changes in tax legislation and in the
interpretation of existing tax laws by U.S. and non-U.S. tax
authorities that affect the amount of taxes due.
Other important factors that could cause actual results to
differ materially from those indicated by any forward-looking
statements are set forth in our 2010 Annual Report on Form 10-K and
our subsequent SEC filings. We encourage investors to read these
filings, particularly the sections on risk factors, for additional
information with respect to any forward-looking statements and
prior to making any investment decision. The forward-looking
statements contained in this presentation speak only as of the date
hereof, September 21, 2011, and we do not undertake efforts to
revise those forward-looking statements to reflect events after
that date.
GM-0014
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