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State Street boosts global ETF operations with enhanced API technology

By Newsdesk

February 15 2024
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State Street boosts global ETF operations with enhanced API technology

By Newsdesk
February 15 2024

State Street Corporation has recently announced a significant upgrade to its Fund Connect ETF portal by enhancing the Application Programming Interface (API) capabilities, extending its services to clients across the globe, including Europe and the Asia-Pacific (APAC) region.

State Street boosts global ETF operations with enhanced API technology

By Newsdesk

February 15 2024
Share

State Street boosts global ETF operations with enhanced API technology

Previously, the Fund Connect ETF APIs had been accessible in the U.S. and Canada, where they contributed to nearly half of the North American order volumes.

The Fund Connect ETF portal, recognized for facilitating the creation and redemption of ETFs, serves as a crucial access point to numerous issuers. Through its automated order routing solution, the portal offers multi-currency ETF access, providing a seamless link between Authorized Participants (APs), order takers, sub-advisors, and sponsors. This expansion is poised to empower global market participants to scale their operations efficiently, reaping benefits in efficiency gains and risk mitigation offered by the portal’s automated API technology.

Lori Coakley, the global business head of Fund Connect ETF at State Street, expressed the rationale behind the expansion, “This expansion is in response to the growing demand from our valued APs, particularly those in Europe and APAC, who have expressed a strong interest in leveraging State Street’s best-in-class connectivity.” She emphasized, “Not only does this cater to that increasing demand for streamlined and automated ETF creation and redemption processes, but it also further solidifies our position as a leader in the ETF industry.”

The ETF market has experienced significant growth recently, driving the demand for enhanced automation within the creation and redemption framework. Acknowledging this trend, State Street aims to meet the evolving needs of APs by upgrading a key component of State Street’s GlobalLink product suite. With the enhanced API integration, global clients will now be able to directly place orders with funds through their own Order Management Systems (OMS).

Frank Koudelka, global head of ETF Product at State Street, highlighted the significance of this advancement, "The global API connectivity is the next logical step in the continued digitization of our ETF servicing business.” He added, “Close to 100 authorized participants are communicating their create/redeem orders globally on behalf of our ETF clients to State Street via Fund Connect. The continued theme we have heard from them is a desire to communicate system-to-system as opposed to web portals, and Fund Connect is now the first create/redeem portal with fully enabled via APIs across Asia-Pacific, Canada, Europe, and the United States. This further demonstrates the innovations that State Street has brought to the marketplace as the largest global ETF service provider.”

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