Key enhancement will provide an industry preferred protocol to simplify ETF creation and redemption and streamline electronic workflows for Authorized Participants (APs)
New Launch Continues State Street’s History of Innovation in ETF Space
BOSTON, February 06, 2023 – State Street Corporation (NYSE:STT) announced today the launch of a Financial Information eXchange (FIX) application programming interface (API) for its Fund Connect ETF platform, a global online portal for the creation and redemption of ETFs within the firm’s GlobalLink product suite.
The FIX enhancement, now available to all participants on the platform, offers connectivity and electronic communication through an integral industry protocol used in electronic trading. This will allow market participants to send orders directly from their order management system (OMS) to the Fund Connect ETF platform streamlining the ETF creation and redemption process.
“As the ETF market continues to evolve in complexity, issuers and market participants are increasingly looking to simplify and automate trading workflows to operate as seamlessly, efficiently and securely as possible,” said Lori Coakley, global business head of Fund Connect ETF. “By developing the FIX protocol for our Fund Connect platform, we are delivering on our strategy to expand connectivity and technology within the global ETF primary market to enable increased volumes and efficiency of orders.”
Fund Connect ETF also recently released the ability for issuers or their agents to approve AP creations and redemptions via RESTful API continuing to deliver increased connectivity and straight through processing for the ETF primary market.
“A digitized workflow is our goal for ETF servicing,” says Frank Koudelka, global head of ETF Solutions at State Street. “Our partners across the authorized participant community have signaled a willingness to invest in system-to-system connectivity. Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”
Fund Connect ETF, a key portal within State Street’s award winning GlobalLink product suite, is a global online portal for the creation and redemption of ETFs, designed as a single point of access to many issuers. For nearly fifteen years, the portal’s automated order placement solution and comprehensive integration to order management systems has supplied a direct link between APs, distributors, order takers, sub-advisors and issuers. The new FIX connectivity method drives increased efficiency, reduced operational risk and enhanced communication between parties.
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 $36.7 trillion in assets under custody and/or administration and $3.5 trillion* in assets under management as of December 31, 2022. 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 December 31, 2022 includes approximately $59 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.
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Media Contact:
Brendan Paul
+1-401-644-9182
bpaul2@statestreet.com