State Street Global Services

Derivatives and Collateral Services

Regulatory reform continues to impact the derivatives market. Changes focused on standardization, increased transparency, collateral management and the reduction of credit risk could require market participants to make potentially large infrastructure investments. In this fast-changing environment, institutional investors like you must identify the swap execution facilities, futures commission merchants and clearinghouses with whom you will work. As a result, you may be considering the benefits offered by an experienced third-party provider.

State Street’s1  end-to-end offering enables straight-through processing and provides an integrated model to meet your derivatives needs. You can rely on our deep experience with settlements, payments, servicing, collateral management and reconciliations to provide solutions that collaboratively meet your needs, with a buy-side focus. Our offering addresses a wide range of derivatives requirements and is available as a full product suite or as individual components.

Clearing.  Our services facilitate clearing across multiple products, markets and geographic regions. Leveraging our combined expertise as a custodian and futures commission merchant, we provide you with highly customized services.  Not only can we help improve your workflow efficiencies, but by combining clearing and custody we can also help to reduce your administrative burden and exposure to multiple counterparties. With State Street, you can consolidate clearing into a streamlined workflow while benefiting from our high credit rankings .

Servicing. Our global derivatives platform automates processing across the middle and back offices, from trade confirmation and allocations to settlement and reporting, using industry-standard formats that link to central counterparties and industry utilities. Our service can help you to streamline your operations, keep pace with regulatory and industry changes, and reduce your operational risk without costly investments in infrastructure and resources.

Collateral Services.  The new margining requirements across both cleared and uncleared transactions are driving the need for strong collateral management capabilities. Counterparty risk must be managed holistically, regardless of where or why collateral is held. Integrated with our OTC derivatives processing and valuation services, our collateral services work with some of the most sophisticated middle-office services available, automating the collateralization process over the life of the transaction — from exposure calculation, profiling and eligibility validation, and daily pricing and substitution to margin call measurement and global exposure reporting.

OTC Derivative Valuations. To help you achieve greater pricing accuracy and clarity, we provide a uniquely independent, transparent service for valuing OTC derivatives. Fully integrated with our industry-leading multi-currency custody and accounting platform, our valuations service can be part of a streamlined, seamless process from automated trade capture to timely inclusion of prices in the net asset value of a fund. We offer comprehensive instrument coverage, industry-standard valuation methodologies, best-practice operational processes and flexibility for market data sources and timing. Our solution can be your trusted source for pricing your OTC derivatives, helping reduce both your reliance on counterparty prices and your risk.

Risk & Analytics Reporting.  Our full-service risk measurement and analytics team provides customized solutions for your portfolio management and reporting needs. With coverage across a wide range of asset classes, including exchange-traded and OTC derivatives, we can present you with a comprehensive picture of your position and portfolio exposures through a Web-based interface that lets you analyze and manage your portfolio in real time.

 

State Street Global Markets, LLC is a futures commission merchant registered in the United States with the Commodity Futures Trading Commission and a member of the National Futures Association. State Street Bank GmbH, London Branch, is authorized and regulated by the Deutsche Bundesbank and the German Financial SupervisoryAuthority/Bundesanstalt für Finanzdienstleistungen and regulated by the UK Financial Services Authority for the conduct of business.

State Street Global Markets is the marketing name and a registered trademark of State Street Corporation, used for its financial markets business and that of its affiliates. This document is a general marketing communication. It is not intended to suggest or recommend any investment or investment strategy and does not constitute investment research. Products and services outlined in this document are offered to professional investors through State Street Global Markets, LLC, which is a member of the National Futures Association, FINRA, SIPC and the New York Stock Exchange, and State Street Bank GmbH, London Branch, which is authorized and regulated by the Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFin) and regulated by the Financial Services Authority (FSA) for the conduct of UK business. The products and services outlined in this document are intended for Eligible Counterparties and Professional Clients in the United Kingdom and other Member States of the European Economic Area with respect to which State Street Bank GmbH, London Branch has exercised passporting rights to provide cross-border services, or to equivalent institutional clients in the US or other jurisdictions. This information is not intended for and must not be used by Retail or other similar private investors. Futures trading is speculative and involves risk of substantial loss. The valuation of futures and options may fluctuate and as a result clients may lose more than the amount originally invested and may have to pay more later. Additionally, trading futures in foreign markets carries particular risks due to fluctuations in the currency exchange rate and differences in regulatory protection. Investments in futures may not be suitable for all investors. Each of State Street Global Markets, LLC and State Street Bank GmbH, London Branch is a wholly owned subsidiary of State Street Corporation. The references in this document to State Street or State Street Corporation may include State Street Corporation and any of its affiliates. The products and services may not be available in all jurisdictions. Please contact your sales representative for further information.

1 State Street offers execution and clearing services for listed derivatives through its affiliate State Street Global Markets, LLC and State Street Bank GmbH, London Branch.  State Street offers custodial services through State Street Bank and Trust Company and its subsidiaries.

 

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