State Street has entered into a definitive agreement to acquire CF Global Trading, a global firm specialising in outsourced trading on an agency basis for a variety of asset classes including equities, listed derivatives and fixed income.
The transaction is expected to be completed by the end of 2023, subject to customary closing conditions. Financial terms are not being disclosed.
The deal will allow State Street to offer a complete global front, middle and back office trading solution as part of the its Alpha front-to-back platform.
In addition, clients will have access to multi-asset class execution across equities, fixed income, exchange-traded derivatives and foreign exchange as well as modular-based solutions that allow clients to outsource components of their trade execution without giving up control.
Clients will also have 24-hour global trading capabilities across multi-asset classes via a transparent, broker neutral, agency model offering.
“Market volatility, margin compression, increased regulation and cost pressures have presented multiple challenges for investment managers,” said Dan Morgan, global head of portfolio solutions at State Street.
He added, “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.”
State Street’s outsourced trading dates back to 2010, and covers the Americas, APAC and Middle East. The acquisition of CF Global Trading,, which has a 20 year plus track record, will expand its reach to the UK and European Union.
As a result, upon completion, the State Street’s footprint for outsourced trading will include trading desks in Boston, New York, Toronto, London, Lisbon, Hong Kong and Sydney.
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