State Street Recognized as the Top FX Settlement Bank in the Bond Connect Program

Monday, July 6, 2020 9:33 am EDT

Dateline:

Hong Kong
"We are very proud to receive this award as it recognizes our efforts to support the development of the Chinese bond market"

State Street Corporation (NYSE:STT) announced today that it has been recognized as the Top FX Settlement Bank in the Bond Connect program by the Bond Connect Company Limited in their 2020 annual awards.

State Street, as a global custodian and principal FX liquidity provider, offers onshore Chinese yuan (CNY) FX trading service for global investors to settle Bond Connect trades and hedge the associated FX risk. Through State Street’s  Bond Connect solution, institutional investors can gain access to State Street’s competitive CNY FX pricing which comes from the deep China Foreign Exchange Trading System (CFETS) liquidity pool directly, along with CNY-funded fixed income custody services.

“We are very proud to receive this award as it recognizes our efforts to support the development of the Chinese bond market,” said Michele Hardeman, head of State Street Global Markets, Asia Pacific. “Global investors’ interest in China’s onshore bond markets has been growing and allocation to Chinese bonds is expected to continue to increase as China accounts for a greater proportion of global bond indices over the longer term. Central banks have also been cutting interest rates amid the COVID-19 pandemic with the low rate environment likely to stay in the near term. Chinese bonds’ real yields are trending much higher than other sovereign bonds with similar ratings, and they also exhibit a low correlation to risk assets and other fixed income due to China’s relatively independent monetary system. We look forward to providing our clients with FX products to more seamlessly meet their fiduciary obligations through effective execution at transparent price.”

Today marks the third anniversary of the Bond Connect scheme, a mutual bond market access program between Hong Kong and Mainland China that allows foreign institutional investors to leverage Hong Kong’s market infrastructure to trade Chinese sovereign and local government bonds, policy bank bonds, Negotiable Certificates of Deposit (NCDs) and corporate debt. The Bond Connect program has been gaining continued momentum since its launch in July 2017. 

The CNY FX services form part of State Street’s full suite of foreign exchange data-driven research and trading services.  State Street provides foreign exchange trading across the entire principal execution spectrum, ranging from fully automated indirect trading to directly negotiated FX transactions, eFX price streams and execution algorithms. Using various distribution channels, State Street quotes more than 50 currency pairs from 12 global sales trading desks locations.  Learn more about State Street’s foreign exchange offerings.

Source: State Street Global Markets, as of December 2019

Media Contacts

Contact a member of the State Street Media Relations Team.

Social Media

Business Wire NewsHQ℠
Cookie Settings