State Street Global Markets

State Street Global Markets

The State Street Global Markets (SSGM) portfolio solutions and transition management team is a separate and distinct team within the global markets division of SSGM.

SSGM is an agency transition management provider with no principal or proprietary trading activities. In addition to traditional algorithmic trading, external crossing networks, and global exchanges, SSGM has access to a significant internal liquidity pool from other transition clients and institutional client flow.

Size of transitions

The average size of transition completed in the last 12 months ending 31 July 2012 for SSGM was approximately US$477 million. The smallest transition completed was less than US$10 million, and the largest transition completed was approximately US$18 billion.

Hedging strategy

SSGM has developed instruments based on the transition’s characteristics and typically include futures, forward FX and ETFs as applicable to manage and reduce currency, country, sector and asset class risks.

Use of crossing

SSGM will use all liquidity sources available to ensure the client received the best possible execution, and the team seeks to maximise liquidity and operate across multiple venues and counterparties to serve clients. Crossing, both externally and with other transition clients, is seen as a valuable source of liquidity that can significantly reduce costs.

Reporting

SSGM has developed a suite of sophisticated reporting tools that are tailored to individual client needs and pre-trade reports, detailed transition strategy analyses, daily execution updates and post trade implementation reports are available.

Benchmarks

SSGM benchmarks transitions on an implementation shortfall basis with a benchmark of closing prices on T-1.

Fiduciary duties

SSGM acts as fiduciary in providing its transition management service.