State Street Announces Expansion of its Fund Connect ETF Digital Platform

Rhea-AI Summary

State Street Corporation (NYSE: STT) has announced that its Fund Connect ETF platform will now support all ETF issuers, expanding its reach beyond just those using State Street's services. This pivotal change enhances connectivity between Authorized Participants and issuers, promoting efficiency and reduced operational risk. The platform currently covers 37 issuers, 830 ETFs, and has managed over $2.5 trillion in notional volume in 2020. With a new office opening in Hong Kong, Fund Connect ETF aims to strengthen its global presence.

Positive

• Expanded access to Fund Connect ETF for all ETF issuers increases potential market share.
• The platform's proven track record supports growth in the ETF market.
• The introduction of a new office in Hong Kong enhances global presence.

Negative

• None.

State Street Corporation (NYSE:STT) today announced that Fund Connect ETF will now be open to support all exchange traded fund (ETF) issuers regardless of their service provider. The platform was previously only available to issuers receiving securities services from State Street. The Fund Connect platform has long served as a conduit between Authorized Participants (APs) and issuers. This expansion marks a pivotal moment for State Street to build on its proven track record of supporting the growing ETF market.

Fund Connect ETF, an integral platform within State Street’s award winning GlobalLink product suite, is a global online trading portal for the creation and redemption of ETFs, designed as a single point of access to many sponsors. For nearly twenty years, the portal’s comprehensive automated trading solution has provided direct access to ETFs in multiple currencies, supplying a direct link between market makers, APs, distributors, transfer agents, sub-advisors and sponsors. This connectivity helps support increased efficiency, reduced operational risk and enhanced communication between all parties.

Fund Connect ETF continues to expand its global footprint, by adding to its existing APAC presence with a new office in Hong Kong scheduled to open later this year. Fund Connect ETF is now supported in all ETF trading jurisdictions across the globe including the US, EMEA, Canada and APAC.

“State Street is pleased to open Fund Connect’s powerful ETF and digital platform to all market participants, regardless of their choice of service provider,” said Nadine Chakar, head of State Street’s Global Markets business. “With connectivity to so many ETF sponsors and APs, Fund Connect ETF is well positioned to make the workflow even more automated and efficient, accelerating the creation and redemption process. This expansion is aligned with our firm’s commitment to an open, flexible approach, as exemplified by State Street Alpha^SM, which brings together the tools, services, insights and partners that clients need on a single platform.”

Fund Connect ETF at a glance :

• Provides global ETF coverage and serves 37 issuers and more than 20 end-to-end integrations
• 77 Authorized Participants (APs)
• More than 830 ETFs funds available including 11 Non-Transparent ETFs
• Managed over $2.5t notional volume in 2020
• Currently manage over $1t AUM as of 12/31/2020

“Our platform is highly scalable because we recognize it’s challenging for sponsors to build and maintain their own systems,” said Gregory Fortuna, head of State Street’s GlobalLink Solutions. “This is where we continue to add value for our clients- by constantly investing in our technology and developing new solutions that move the industry forward. We are proud of this milestone and the opportunity to service the ETF industry more broadly.”

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 $38.8 trillion in assets under custody and/or administration and $3.5 trillion* in assets under management as of December 31, 2020, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of December 31, 2020 includes approximately $75 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.

© 2021 State Street Corporation - All Rights Reserved

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FAQ

What is the new change in Fund Connect ETF announced by State Street on March 10, 2021?

State Street announced that Fund Connect ETF will now support all ETF issuers, enhancing its platform's accessibility.

How many ETFs does Fund Connect ETF currently manage?

Fund Connect ETF currently manages over 830 ETFs.

What was the notional volume managed by Fund Connect ETF in 2020?

Fund Connect ETF managed over $2.5 trillion in notional volume in 2020.

What are the benefits of the Fund Connect ETF expansion for investors?

The expansion promotes increased efficiency, reduced operational risk, and enhanced communication in ETF transactions.

Where is the new office of Fund Connect ETF being opened?

A new office for Fund Connect ETF is scheduled to open in Hong Kong.