State Street Further Expands Outsourced Trading Capabilities
March 22 2023 - 6:00AM
Business Wire
Acquisition of CF Global Trading to help clients drive growth to
portfolios while accessing the scale, experience, insights,
liquidity and technology of State Street’s established trading
infrastructure
State Street Corporation (NYSE: STT) announced today it has
entered into a definitive agreement to acquire CF Global Trading, a
global firm specializing in outsourced trading on an agency basis
for a variety of asset classes including equities, listed
derivatives and fixed income. The transaction is expected to be
completed by the end of 2023, subject to customary closing
conditions. Financial terms are not being disclosed.
For more than 20 years CF Global Trading and their established
team of traders has helped asset managers extend global trading
infrastructure, improve access to liquidity, streamline workflow
and reduce trading and infrastructure costs. CF Global Trading has
expertise across multiple asset classes and will have execution
desks in Hong Kong, London, New York and Lisbon (expected to be
opened by the time of the close of this acquisition) and this deal
will further expand State Street’s current outsourced trading,
meaning clients can expect the ability to provide outsourced
trading services to new clients and markets. Importantly, the
combination of the two firms will allow State Street to offer a
complete global trading solution as part of the firm’s State Street
AlphaSM front-to back platform.
In addition to scale and adding significant expertise to State
Street’s outsourced trading services, clients can also expect:
- Multi-asset class execution across equities, fixed
income, exchange-traded derivatives and foreign exchange
- Modular-based solutions that allow clients to outsource
components of their trade execution without giving up control, as
well as access to the front, middle and back office through State
Street AlphaSM
- 24-hour global trading capabilities across multi-asset
classes via a transparent, broker neutral, agency model
offering
- Reduced operational risk with a robust risk management
framework and business continuity back-up
- Potential cost savings that allow clients to focus on
what they do best
“Market volatility, margin compression, increased regulation and
cost pressures have presented multiple challenges for investment
managers. Survival and growth depend on the ability to streamline
processes, reduce costs and integrate infrastructure to allow more
focus on core competencies of investment selection and alpha
generation,” said Dan Morgan, global head of Portfolio Solutions at
State Street. “With the addition of CF Global Trading, we add scale
and significant expertise to our outsourced trading services that
will complement and help further bolster our current
offerings.”
State Street has provided clients with outsourced trading
solutions since 2010, and has invested in technology and people to
provide a leading agency, multi asset class outsourced trading
solution. State Street currently provides outsourced trading to
clients in the Americas, APAC and Middle East, and CF Global
Trading will extend the ability for the firm to provide these
services to clients in the UK and the EU, where outsourced trading
is maturing the fastest. After closing, the new combined State
Street footprint for outsourced trading will include trading desks
in Boston, New York, Toronto, London, Lisbon, Hong Kong and
Sydney.
“This is a very exciting day for all of us at CF Global
Trading,” said Scott Chace, co-founder and CEO of CF Global
Trading. “Our team has worked with our clients for 20+ years to
develop a global, multi asset class execution platform with a focus
on accessing liquidity, improving workflows and reducing costs. We
look forward to joining the State Street team and continuing to
build on our client platform and experience with the scale of one
of the world’s largest institutional financial services
providers.”
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 $36.7 trillion in assets
under custody and/or administration and $3.5 trillion* in assets
under management as of December 31, 2022. State Street operates
globally in more than 100 geographic markets and employs
approximately 42,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
*Assets under management as of December 31, 2022 includes
approximately $59 billion of assets with respect to SPDR® products
for which State Street Global Advisors Funds Distributors, LLC
(SSGA FD) acts solely as the marketing agent. SSGA FD and State
Street Global Advisors are affiliated.
© 2023 State Street Corporation - All Rights Reserved
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Media Contact (North America) Ed Patterson
+ 1 404 213 3106 epatterson@statestreet.com
Media Contact (EMEA) Michel Chau +44 (0)
7500 682982 mchau@statestreet.com
Media Contact (APAC) Kate Cheung +852 3556
1103 kate.cheung@statestreet.com
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