Bloomberg and State Street integrate tools for ETF efficiency

Both firms are linking ETF solutions to “enhance” fixed income ETF markets.

Bloomberg and State Street are linking up their exchange traded fund (ETF) tools in an effort to improve efficiency, automation and scalability for fixed income traders.

State Street’s automated TotalETF and its order management system (OMS), Fund Connect, will be integrated with Bloomberg’s fixed income ETF basket service, BSKT<GO>.

It means users can submit orders through BSKT to State Street with settlement instructions based on messages sent via Bloomberg.

Both firms have described the integration as an “enhancement” for the fixed income ETF market.

Frank Koudelka, senior vice president at State Street, explained the fixed income market is increasingly becoming more complex due to the proliferation of ETFs.  

He added that the “enhancement” through Bloomberg is the “first, end-to-end solution for processing and settlement of fixed income ETF baskets.”

Global head of product at Bloomberg, Ben Macdonald, echoed Koudelka, explaining the growth in ETFs means “the need for workflow efficiency in the creation and redemption of process will be critical.”

Macdonald concluded the integration of BKST and TotalETF “ensures that ETF sponsors using Bloomberg and Fund Connect will experience efficient processing of their transactions.”