The new service, Assisted Trading, can enter the ETFs market makers and specialists want to trade and identify any restricted shares via State Street’s Fund Connect platform. Restricted shares are securities that are not eligible for proprietary trading and change daily based on underwriting, mergers, investments or other activities.
Previously, the method for identifying restricted shares within ETFs was manual and intensive. Assisted Trading routes restricted shares to State Street Global Markets, the company’s investment research and trading arm, to handle the trades.
“Since 1993, State Street has differentiated itself among other ETF service providers through its leading-edge technology, consultative client approach and flexible servicing model to service ETFs,” said Frank Koudelka, a SVP at State Street Global Services. “Our new offering automates the way in which clients handle restricted securities, making it a seamless process with a clear audit trail that facilitates compliance with regulatory requirements.”