State Street Further Expands Outsourced Trading Capabilities

State Street Corporation (NYSE: STT) announced today it has entered into a definitive agreement to acquire CF Global Trading, a global firm specializing in outsourced trading on an agency basis for a variety of asset classes including equities, listed derivatives and fixed income. The transaction is expected to be completed by the end of 2023, subject to customary closing conditions. Financial terms are not being disclosed.

For more than 20 years CF Global Trading and their established team of traders has helped asset managers extend global trading infrastructure, improve access to liquidity, streamline workflow and reduce trading and infrastructure costs. CF Global Trading has expertise across multiple asset classes and will have execution desks in Hong Kong, London, New York and Lisbon (expected to be opened by the time of the close of this acquisition) and this deal will further expand State Street’s current outsourced trading, meaning clients can expect the ability to provide outsourced trading services to new clients and markets. Importantly, the combination of the two firms will allow State Street to offer a complete global trading solution as part of the firm’s State Street Alpha^SM front-to back platform.

In addition to scale and adding significant expertise to State Street’s outsourced trading services, clients can also expect:

• Multi-asset class execution across equities, fixed income, exchange-traded derivatives and foreign exchange
• Modular-based solutions that allow clients to outsource components of their trade execution without giving up control, as well as access to the front, middle and back office through State Street Alpha^SM
• 24-hour global trading capabilities across multi-asset classes via a transparent, broker neutral, agency model offering
• Reduced operational risk with a robust risk management framework and business continuity back-up
• Potential cost savings that allow clients to focus on what they do best

“Market volatility, margin compression, increased regulation and cost pressures have presented multiple challenges for investment managers. Survival and growth depend on the ability to streamline processes, reduce costs and integrate infrastructure to allow more focus on core competencies of investment selection and alpha generation,” said Dan Morgan, global head of Portfolio Solutions at State Street. “With the addition of CF Global Trading, we add scale and significant expertise to our outsourced trading services that will complement and help further bolster our current offerings.”