Real-money clients are central to State Street’s franchise, so it makes sense that this is a client segment the bank has performed well in, according to Dale Haver, global head of foreign exchange sales. “We work with real-money clients as partners and are 100% focused on achieving better outcomes for them and their investors.
“As the real-money segment has become more competitive with other banks moving into this space, it has only helped us raise our game and ensure we are providing the best possible solutions,” he adds. “You can see how the evolution of the real-money segment has inspired and driven our direction, whether it is our algo offerings, collateral framework, or research platform.”
State Street’s proprietary Interest Match liquidity feature allows clients to leverage the bank’s real-money FX franchise by matching a client’s algo order with internal and peer-to-peer liquidity, lowering market impact and reducing signalling risk.
“Interest Match is our first step toward peer-to-peer order matching,” says Haver. “Our clients have come to rely on our ability to offset positions against our franchise real-money FX client base. That is unique to State Street.”
In response to recent Standardized Approach for Counterparty Credit Risk regulations, State Street was able to develop a framework to help clients manage their capital requirements in its role as global custodian. That has allowed clients to benefit from lower transaction costs.
“Our industry reach enables us to derive actionable, data-driven insights into the broad market trends that impact global financial markets,” says Haver. “Through our suite of unique, data-driven indicators and our own industry experts, we provide clients with an information edge to help managers make more informed investment decisions.”