State Street Global Markets Joins CME Group for OTC Derivatives Trade Clearing
September 12 2012 - 1:02PM
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.
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