If you use listed derivatives as part of your investment strategies, you face operational challenges that increase the risk and cost of using listed derivatives. With new regulations driving more derivatives activity toward exchange-cleared instruments, doing business could become even more costly and complex because investors will be involved in over-the-counter bilateral, over-the-counter cleared and on-exchange instruments.
As one of the world’s leading providers of financial services, State Street can help. With our combined expertise as a custodian and futures commission merchant, we provide highly customized and unique services to clients using listed derivatives. Not only can we improve your listed derivatives workflow efficiencies, but we can also reduce your administrative burden and exposure to multiple counterparties.
Providing unrivaled efficiencies with combined expertise as custodian and futures commission merchant
Because investment managers typically have clearing relationships with multiple futures commission merchants and custodians, the workflow processes of trade instruction, reconciliation and cash payments are manually intensive and prone to errors. With State Street, you can consolidate clearing into a single workflow where possible, while maintaining execution relationships with multiple brokers.
You also have access to a global team of specialists with extensive experience in listed derivatives and our full-service suite of capital market products. The benefits of working with State Street:
> Reduced operational risk
> More efficient use of derivatives-related cash and collateral
> Reduction of fails as cash and collateral move within State Street
> Speedy detection of errors and exceptions
> A streamlined derivatives workflow process for middle and back office
> Enhanced reconciliation capability
> Account data tailored and delivered to suit your specific needs
> Seamless communication via our proven leading-edge technology, FuturesConnect
Regulated Futures Clearing Entities
State Street offers execution and clearing services for listed derivatives across all major markets through its affiliates, State Street Global Markets, LLC and State Street Bank GmbH, London Branch. State Street Global Markets, LLC is a futures commission merchant registered in the United States with the Commodity Futures Trading Commission and a member of the National Futures Association. State Street Bank GmbH, London Branch, is authorized and regulated by the Deutsche Bundesbank and the German Financial Supervisory Authority/Bundesanstalt für Finanzdienstleistungen and regulated by the UK Financial Services Authority for the conduct of business.