State Street Launches StreetFX℠ Solution for T+1 Settlement
October 19 2023 - 8:00AM
Business Wire
In preparation for the US equity market’s transition to a T+1
settlement cycle scheduled for May 28, 2024, State Street
Corporation (NYSE: STT) today announced that it is offering an
automated workflow solution and integration with DTCC within State
Street’s foreign exchange (FX) trading service, StreetFX℠. DTCC is
the premier post-trade market infrastructure for the global
financial services industry.
By connecting to DTCC Institutional Trade Processing (ITP) and
its central trade matching platform, CTM®, StreetFX is now able to
receive settlement instructions from DTCC ITP for match agreed CTM
transactions. StreetFX automatically executes the required FX trade
necessary to fund the purchase or sale of the related securities
transaction at the next scheduled execution time designated by the
client, streamlining the FX lifecycle and enabling a faster
no-touch post-trade processing workflow. When leveraged in
conjunction with the CTM Match to Instruct (M2i) workflow, StreetFX
executes the necessary FX trade shortly after the affirmation of
the securities trade and staging at the DTCC for T+1
settlement.
Consistent with State Street’s mission of helping to improve
outcomes for investors, cutting down on settlement time for FX
transactions from T+2 to T+1 will lead to shorter trade cycles for
investors, thereby helping to reduce counterparty risk.
“State Street is helping to drive solutions that address
critical performance drivers by rolling out an automated FX
execution solution to facilitate the US securities market’s
transition to T+1 settlement,” said Tony Bisegna, head of State
Street Global Markets. “This innovative advancement is another
example of State Street’s commitment to providing industry-leading
firsts to our clients.”
“CTM’s open architecture enables us to work with multiple firms
within the industry to support the industry’s move to T+1 next
year. We are pleased that our collaboration with State Street
reinforces that CTM represents an efficient and cost-effective
solution to address the FX trading challenges that come with a
shorter settlement cycle,” said Val Wotton, DTCC managing director
and general manager, ITP. “We look forward to working with a broad
range of market participants over the coming months to help them
prepare for a seamless transition to T+1.”
StreetFX is State Street’s fully-automated Benchmark Foreign
Exchange, custodian agnostic, execution platform with a rules-based
workflow designed to increase transparency and efficiency in FX
trading. It seamlessly integrates within clients’ existing
infrastructure to create an end-to-end solution that increases
consistency and decreases operational risk.
CTM is a central matching platform used by end-user clients to
allocate and centrally match transactions globally across multiple
asset classes.
Click here to learn more.
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 $40.0 trillion in assets
under custody and/or administration and $3.7 trillion* in assets
under management as of September 30, 2023, 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 September 30, 2023 includes
approximately $58 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: Brendan Paul Mobile: +1 401 644 9182
bpaul2@statestreet.com
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