State Street is expected to acquire outsourced trading capabilities company CF Global Trading. The deal is due to close by the end of 2023.
CF Global Trading offers outsourced trading on an agency basis, covering a range of asset classes. The company’s execution desks in Hong Kong, New York, London and, by the end of 2023, Lisbon, will allow State Street to offer a complete, 24-hour global trading solution to a wider range of clients and locations.
State Street’s front-to-back platform, State Street Alpha, will gain multi-asset class execution and modular-based solutions capabilities following the acquisition. The expanded system will help clients reduce operational risk and costs and improve liquidity access, the bank says.
Dan Morgan, global head of portfolio solutions at State Street, says: “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.”
Scott Chace, co-founder and CEO of CF Global Trading, adds: “Our team has worked with our clients 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.”
