State Street has announced it is closing its swaps business to focus on futures execution and clearing.
The move comes as a response to client demand, which is a reaction to changes in the market and regulation.
State Street issued a statement saying: “Our clients have largely evolved their investment strategies towards the use of futures and away from the use of over-the-counter (OTC) derivatives.”
State Street will not now launch OTC clearing in Europe, and will stop operations in the US in early 2015, when it has completed its current contractual agreements.
The statement continued: “Our futures execution and clearing business remains a key priority, which is demonstrated by the recent build out of our execution desk in the US and EMEA.”
