State Street has expanded the capabilities of its Alpha platform to support the entire exchange traded funds’ (ETF) “life cycle” with the introduction of front, middle and back-office capabilities.
Specifically, ETF issuers will be able to employ the platform’s portfolio management, trading, and compliance functions to “enable growth across a variety of ETF strategies and increase speed to market”, according to the firm.
In a statement on Tuesday, State Street confirmed that the new offering combines the front office products of fintech Charles River Development with State Street’s ETF servicing capabilities to deliver end-to-end technology and processes.
John Plansky, head of State Street Alpha, said the platform’s expansion comes after robust growth in ETFs in the first four months of 2023, with no signs of slowing.
“According to our internal research, ETFs had over US$200 billion ($295 billion) of inflows globally, the third highest total on record, bringing the total ETF market to approximately US$10 trillion ($14.76 trillion),” Mr Plansky explained.
“By optimising ETF workflows with consistent data, key analytics, and more efficient basketing capabilities, asset managers are better equipped to drive investment decision making with access to near real-time data [to] modernise their operating models as the ETF marketplace continues to grow.”
Frank Koudelka, global ETF product specialist for State Street, highlighted that State Street’s advancements in the ETF industry have supported the growth of the multi-trillion-dollar sector.
“Today, State Street is the largest ETF administrator in the world with more than 2,700 ETFs serviced in 13 countries and provides fully integrated global ETF servicing capabilities,” Mr Koudelka continued.
“This heritage of expertise has been leveraged throughout the development of the Alpha platform and reaffirms our position as the forefront leader in ETF servicing,” he concluded.
In March, the firm also announced that it had entered into a definitive agreement to acquire outsourced trading firm CF Global Trading for an undisclosed sum.
Speaking on the occasion, State Street said the combination of the two firms will enable it to offer a complete global trading solution as part of its Alpha platform.
