State Street Corporation said its exchange-traded fund service, Total ETF, will use cloud-based technology to fully automate the development and management of a fund from basket creation through to trade processing and settlement.
The new enhancements provide complete integration to core applications, end-to-end automation and full client transparency via an ETF dashboard available on the company’s client website my.StateStreet.com.
Additional functionality includes the geographic expansion of State Street’s Fund Connect ETF order management system and a daily performance attribution capability for ETFs.
"TotalETF will help solve all potential administrative pain points for ETF sponsors globally,” said Frank Koudelka, senior vice president of State Street’s Global Services business.”
The ETF dashboard on my.StateStreet.com now allows portfolio managers to monitor the basket near real-time, and geographic expansion of Fund Connect ETF order management system includes coverage for Europe, Canada and the Asia-Pacific region. The enhanced daily performance attribution capability also allows for NAV decomposition to break down tracking error into specific components.
"Our expanded offering reflects the tremendous growth that ETFs have experienced over the past decade,” Koudelka added. “As the only provider offering a common electronic order management platform to connect all market participants involved in ETF trading, our clients now have a scalable servicing solution that will allow them to focus on developing new ETF products.”
State Street pioneered ETF servicing as the service provider for the first ETF product launched in the US in 1993. In the years since, State Street has helped launch the ETF industry in Hong Kong, Australia and Luxembourg, as it expanded its servicing capabilities worldwide.
Mary Ann Tasoulas writes for Securities Technology Monitor.