State Street unveils global cloud technology for ETF servicing
State Street has expanded its servicing capabilities to enable daily ETF monitoring, from basket-creation through to trade processing and settlement
TotalETF, State Street’s computing service, now uses cloud technology that allows computers to receive software and information via the internet. The result is a global automated system that operates from basket-creation through to trade processing and settlement, according to State Street.
As more ETF managers expand into new countries and regions, there are significant benefits from using the same provider on a global basis, says Deborah Fuhr, an independent ETF strategist. “Other ETF service providers may well feel the need to offer similar services on a global basis,” she says.
Transparency is now also provided to clients via a dashboard at my.StateStreet.com. “This allows our clients to look at the index and see how it is being priced and how the basket that will be trading in the marketplace the next day is calculated,” says Frank Koudelka, senior vice-president of State Street’s global services business.
“The daily performance capability allows the portfolio manager to look at the individual components that might be creating deviation from the index tracking so that they can make moves to tighten up the ETF versus its index,” he says.
A new electronic order-taking system allows authorised participants to create or redeem units online. “It enables our clients to see the flows on a near real-time basis and for the market-makers to interact online as opposed to either faxing or calling,” says Koudelka.
This article was first published on Risk