State Street Global Advisors and Bloomberg Expand Global Access to Fixed Income ETF Creation and Redemption
December 15 2016 - 10:00AM
Business Wire
State Street Global Advisors (SSGA), the asset management
business of State Street Corporation (NYSE:STT), and Bloomberg
announced today enhancements to Bloomberg’s Fixed Income ETF Basket
service (BSKT<GO>). Bloomberg’s BSKT <GO> tool
automates the process of gaining access to liquidity necessary to
create and redeem fixed income ETFs, and integrates functionality
from across the Bloomberg Terminal, including Bloomberg’s Trading
Solutions Order Execution (TSOX), Portfolio Analytics and Risk
(PORT) and Fixed Income Trading (FIT) solutions.
The enhancement increases the efficiency of fixed income ETF
basket creation and redemption by enabling dealers to proactively
provide existing bond inventory from which providers can create
targeted baskets.
“During the first nine months of 2016, investors have added more
than $77 billion of net new inflows into bond ETFs, which
underscores the demand for increased liquidity and transparent
exposure in the fixed income markets,” said Tim Coyne, head of
Institutional Sales and Global Capital Markets for SPDR ETFs at
SSGA. “In offering clients improved access to the benefits of Fixed
Income ETFs, these innovations give portfolio managers more choices
and flexibility to customize their bond exposure.”
Since the introduction of BSKT<GO> in late 2014, SSGA
clients have used the service to streamline ETF basket creation and
redemption by automating the communication of their daily
requirements to targeted recipients. Authorized dealers can then
view and respond to these opportunity sets, create baskets, submit
them to providers for approval, and monitor the status of
submissions. With the enhancements in BSKT 2.0, dealers can more
proactively participate in this process, by sharing existing
inventory, from which providers can choose to create targeted
baskets for each dealer.
“With the success of our initial partnership with State Street
to automate the creation and redemption process for Fixed Income
ETFs, we are thrilled to announce BSKT 2.0 which will now enable
clients and dealers a more automated and efficient way to create
ETF shares using their existing bond inventory,” said Dave Mullen,
senior business manager for Fixed Income ETF products and ETF
trading platform at Bloomberg. “This enhancement creates an
additional way for State Street’s institutional clients to source
liquidity in the market.”
About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been
committed to helping financial professionals and those who rely on
them achieve their investment objectives. We partner with
institutions and financial professionals to help them reach their
goals through a rigorous, research-driven process spanning both
active and index disciplines. We take pride in working closely with
our clients to develop precise investment strategies, including our
pioneering family of SPDR ETFs. With trillions* in assets under
management, our scale and global footprint provide unrivaled access
to markets and asset classes, and allow us to deliver expert
insights and investment solutions.
State Street Global Advisors is the investment management arm of
State Street Corporation.
*Assets under management were $2.4 trillion as of September 30,
2016. AUM reflects approx. $40 billion (as of 9/30/2016) with
respect to which State Street Global Markets, LLC (SSGM) serves as
marketing agent; SSGM and State Street Global Advisors are
affiliated.
About Bloomberg
Bloomberg, the global business and financial information and
news leader, gives influential decision makers a critical edge by
connecting them to a dynamic network of information, people and
ideas. The company’s strength – delivering data, news and analytics
through innovative technology, quickly and accurately – is at the
core of the Bloomberg Professional service, which provides real
time financial information to more than 327,000 subscribers
globally. For more information, visit
http://www.bloomberg.com/company or request a demo.
Important Risk Information
Investing involves risk including the risk of loss of
principal.
ETFs trade like stocks, are subject to investment risk,
fluctuate in market value and may trade at prices above or below
the ETFs net asset value. Brokerage commissions and ETF expenses
will reduce returns.
Bonds generally present less short-term risk and volatility than
stocks, but contain interest rate risk (as interest rates raise,
bond prices usually fall); issuer default risk; issuer credit risk;
liquidity risk; and inflation risk. These effects are usually
pronounced for longer-term securities. Any fixed income security
sold or redeemed prior to maturity may be subject to a substantial
gain or loss.
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 investor's particular investment objectives,
strategies, tax status or investment horizon. You should consult
your tax and financial advisor. All material has been obtained from
sources believed to be reliable. There is no representation or
warranty as to the accuracy of the information and State Street
shall have no liability for decisions based on such
information.
CORP-2476
Expiration date 12/31/2017
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State Street CorporationAndrew Hopkins, +1
617-664-2422Ahopkins2@StateStreet.com
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