State Street’s TruCross/FX Solution Now Live
October 09 2014 - 1:34PM
Business Wire
Solution Creates Trading Efficiencies in Electronic Foreign
Exchange Benchmark Trading
State Street Global Markets today announced that its TruCross/FX
platform is now live and available to institutional investment
managers. Announced in May, TruCross/FX is a FX spot benchmark
execution product that facilitates the matching of institutional
trades at benchmark rates, and is overseen by State Street Global
Market’s Agency FX unit. TruCross/FX is designed to create
efficiencies in electronic FX benchmark trading by reducing
information leakage and volatility around benchmark pricing
times.
“The Financial Stability Board has recommended the development
of industry-led independent netting and execution facilities for
transacting fix orders. In addition, the FSB recommended that
fixing transactions be priced in a transparent manner and in a way
that is consistent with the risk borne in accepting such
transactions, TruCross/FX offers just such a facility,” said Mark
Snyder, executive vice president and head of State Street Global
Markets Sales & Trading and Research business. “TruCross/FX
offers our clients a transparent, clearly communicated and
documented fee structure, and efficient trading solution for their
benchmark FX transactions.”
TruCross/FX offers an alternative to the present model of
bilateral buy-side to sell-side benchmark order submission process.
A series of automated daily sessions match buy and sell orders for
certain currency pairs which are then priced with reference to the
selected benchmark price. Once the benchmark orders are matched,
only the unmatched amounts are executed in the market during the
period in which the benchmark is calculated utilizing a proprietary
algorithm. TruCross/FX will deliver the WM/Reuters mid-rate
benchmark rate net of fully disclosed commissions and rate
adjustments.
TruCross/FX will be available initially through FX Connect,
State Street’s multi-bank electronic trading system, and is
expected to also be available through other platforms in the
future. Institutional investors can submit orders to a session
ahead of a fixing with no pre-trade information leakage to the
market, their trading counterparties or State Street’s principal
foreign exchange trading desk.
TruCross/FX platform is currently only available to
institutional investment managers in the United States, United
Kingdom and Canada, with availability in other jurisdictions
expected in the near future.
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 $28.4 trillion in assets
under custody and administration and $2.48 trillion* in assets
under management as of June 30, 2014, State Street operates in more
than 100 geographic markets worldwide, including the US, Canada,
Europe, the Middle East and Asia. For more information, visit State
Street’s web site at www.statestreet.com.
* Assets under management include the assets of the SPDR® Gold
ETF (approximately $33 billion as of June 30, 2014), for which
State Street Global Markets, LLC, an affiliate of SSgA, serves as
the distribution agent.
Investing involves risk including the risk of loss of
principal.
The information provided does not constitute investment advice
and it should not be relied on as such. It should not be considered
a solicitation to buy or an offer to sell a security. It does not
take into account any investors particular investment objectives,
strategies, tax status or investment horizon.
Currency Risk is a form of risk that arises from the change in
price of one currency against another. Whenever investors or
companies have assets or business operations across national
borders, they face currency risk if their positions are not
hedged.
CORP-1115
State Street CorporationAlicia Curran Sweeney, +1
617-664-3001www.statestreet.com@StateStreet
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