State Street Expands Fund Connect ETF APIs to Provide Global Coverage

Rhea-AI Summary

State Street Corporation (NYSE: STT) has expanded its Fund Connect ETF portal with global coverage, including Europe and the APAC region. The API upgrades allow for automated order routing and direct access to ETFs in multiple currencies, meeting the increasing demand for streamlined and automated ETF creation and redemption processes. The expansion aims to cater to the evolving needs of Authorized Participants (APs) and solidify State Street's position as a leader in the ETF industry.

Insights

Market Research Analyst

The expansion of State Street Corporation's Fund Connect ETF portal signifies a strategic move to enhance global ETF trading efficiency. By upgrading the API, the company is addressing the surge in automation demand within the ETF creation and redemption process. This move is expected to streamline operations for Authorized Participants (APs) and could lead to increased trading volumes and potentially higher revenue for State Street due to its service provider fees. The global reach of this upgrade positions State Street to capitalize on the growing ETF market, which has seen significant growth in recent years.

From a market perspective, the ability to place orders directly through Order Management Systems (OMS) can reduce the time to market for trades and minimize operational risks associated with manual order entry. This could make State Street's platform more attractive to institutional investors, which may enhance its competitive position in the market. The long-term implications could include a strengthened client base and an enhanced reputation as a leader in ETF services, which may positively influence the company's stock performance.

Financial Technology Expert

The upgrade of State Street's API for its Fund Connect ETF portal underscores the importance of financial technology innovation in the asset management industry. By enabling fully automated API connectivity across key global markets, State Street is facilitating a more efficient and secure method of communication between the various stakeholders in the ETF lifecycle.

This technological advancement is likely to reduce costs associated with manual processes and could lead to operational scalability for clients. In the context of financial technology, API integrations are crucial for real-time data exchange and seamless interoperability between systems, which are key drivers for operational excellence in financial services. The enhanced API integration could potentially attract new clients who prioritize technology-driven solutions, thereby increasing State Street's market share in ETF services.

Global Investment Strategist

The international expansion of the Fund Connect ETF portal's API capabilities has significant implications for the global investment strategy landscape. With the ETF market's growth, there is an increasing need for cross-border trading solutions that can handle multiple currencies and complex regulatory environments. The ability for APs to seamlessly execute ETF creations and redemptions on a global scale could enhance liquidity and market efficiency.

Furthermore, the move by State Street to digitize its ETF servicing business reflects a broader industry trend towards digital transformation. By being at the forefront of this shift, State Street may gain a first-mover advantage in new markets, particularly in Europe and the APAC region, where ETF growth rates are accelerating. This strategic positioning could lead to long-term benefits as the company solidifies its role as a key player in the global ETF marketplace.

BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE: STT) today announced the expansion of its Fund Connect ETF portal via upgrades to its Application Protocol Interface (API), now offering coverage to all clients globally including Europe and the APAC region. Fund Connect ETF APIs have been available in the U.S. and Canada for years and account for nearly half of North American order volumes.

Fund Connect ETF is a global online portal that facilitates the creation and redemption of ETFs, designed as a single point of access to many issuers. The portal’s automated order routing solution provides access to ETFs in multiple currencies, supplying a direct link between Authorized Participants (APs), order takers, sub-advisors and sponsors. This API expansion allows global market participants to scale their businesses and capitalize on efficiency gains and risk reduction through the portal’s automated API technology.

“This expansion is in response to the growing demand from our valued APs, particularly those in Europe and APAC, who have expressed a strong interest in leveraging State Street’s best-in-class connectivity,” said Lori Coakley, global business head of Fund Connect ETF at State Street. “Not only does this cater to that increasing demand for streamlined and automated ETF creation and redemption processes, but it also further solidifies our position as a leader in the ETF industry.”

The ETF market has witnessed unparalleled growth over the course of the past few years, driving a surge in demand for increased automation within the creation and redemption framework. Recognizing this trend, State Street is meeting the evolving needs of APs by upgrading one of the most integral parts of State Street’s GlobalLink product suite. With this enhanced API integration, clients globally will now be able to seamlessly place orders directly with funds via their own Order Management Systems (OMS).

“The global API connectivity is the next logical step in the continued digitization of our ETF servicing business,” said Frank Koudelka, global head of ETF Product at State Street. “Close to 100 authorized participants are communicating their create / redeem orders globally on behalf of our ETF clients to State Street via Fund Connect. “The continued theme we have heard from them is a desire to communicate system-to-system as opposed to web portals, and Fund Connect is now the first create / redeem portal with fully enabled via APIs across Asia-Pacific, Canada, Europe and the United States. his further demonstrates the innovations that State Street has brought to the marketplace as the largest global ETF service provider.”

Fund Connect ETF is an integral part of State Street Global Markets’ suite of award-winning electronic trading platforms.

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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 $41.8 trillion in assets under custody and/or administration and $4.1 trillion* in assets under management as of December 31, 2023, State Street operates globally in more than 100 geographic markets and employs approximately 46,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of December 31, 2023 includes approximately $64 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.

© 2024 State Street Corporation

View source version on businesswire.com: https://www.businesswire.com/news/home/20240208891005/en/

Media:

Brendan Paul

+1 (401) 644-9182

bpaul2@statestreet.com

Source: State Street Corporation

FAQ

What is the ticker symbol for State Street Corporation?

The ticker symbol for State Street Corporation is STT.

What is the purpose of the Fund Connect ETF portal expansion?

The expansion aims to provide global coverage, including Europe and the APAC region, and to meet the increasing demand for streamlined and automated ETF creation and redemption processes.

How does the API upgrade benefit global market participants?

The API upgrade allows global market participants to scale their businesses and capitalize on efficiency gains and risk reduction through the portal’s automated API technology.

What is the role of Fund Connect ETF in State Street's product suite?

Fund Connect ETF is an integral part of State Street Global Markets’ suite of award-winning electronic trading platforms, providing a single point of access to many issuers for the creation and redemption of ETFs.

Who is the global business head of Fund Connect ETF at State Street?

Lori Coakley is the global business head of Fund Connect ETF at State Street.