State Street has entered the outsourced trading market through its definitive agreement to acquire CF Global Trading.
CF Global Trading offers global execution and outsourced trading solutions to asset managers worldwide, operating execution desks in New York, London, and Hong Kong for a range of asset classes including equity, listed derivatives, and fixed income. The official announcement also noted that the company is expanding into Lisbon in the near future.
The acquisition is expected to be completed by the end of 2023, however, the companies have not disclosed the financial terms of the deal.
State Street’s Global Head of Portfolio, Dan Morgan, said:
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.
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.
Since 2010, State Street has provided outsourced trading solutions to clients in the Americas, APAC, and the Middle East. With the acquisition of CF Global Trading, the banking giant can now extend its services to the United Kingdom and European Union, enabling the firm to offer a comprehensive global trading solution as part of the State Street Alpha front-to-back platform.
Moreover, the acquisition will enhance services by incorporating multi-asset class execution, modular-based solutions, around-the-clock trading capabilities, reduced operational risk, and potential cost savings.
Scott Chace, Co-Founder and CEO of CF Global Trading, added:
Our team has worked with our clients for 20+ years to develop a global, multi-asset class execution platform with a focus on accessing liquidity, improving workflows and reducing costs. We look forward to joining the State Street team and continuing to build on our client platform and experience with the scale of one of the world’s largest institutional financial services providers.
