State Street has launched StreetFX, an automated workflow solution integrated with DTCC within its foreign exchange (FX) trading service.
The initiative is part of preparations for the US equity market’s move to a T+1 settlement cycle, expected to go live on 28 May 2024.
By connecting to DTCC Institutional Trade Processing and CTM, its central trade matching platform, StreetFX is able to receive settlement instructions from DTCC ITP for match-agreed CTM transactions.
StreetFX then automatically executes the FX trade needed to fund the purchase or sale of the related securities translation at the next scheduled execution time, designated by the client. This streamlines the FX lifecycle and allows for a faster, no-touch post-trade processing workflow, State Street says.
If used alongside DTCC’s CTM Match to Instruct workflow, the platform can execute the necessary FX trade shortly after the securities trade’s affirmation and staging at the DTCC for T+1 settlement.
Tony Bisegna, head of State Street Global Markets, says: “State Street is helping to drive solutions that address critical performance drivers by rolling out an automated FX execution solution to facilitate the US securities market’s transition to T+1 settlement.”
Val Wooton, DTCC managing director and general manager for ITP, comments: “CTM’s open architecture enables us to work with multiple firms within the industry to support the industry’s move to T+1 next year. Our collaboration with State Street reinforces that CTM represents an efficient and cost-effective solution to address the FX trading challenges that come with a shorter settlement cycle.”
