State Street has expanded its futures execution and analytics offering to the buy-side within its futures commission merchant (FCM), giving asset managers the ability to connect directly to trading venues and enhance existing algorithmic tools.
The offering, through State Street Global Exchange, includes direct market access (DMA) and support for voice execution for futures and swaps products. The expanded offering means State Street can link execution services with clearing and collateral services offered through its custodian bank.
Charles Cooper, senior managing director at State Street, who is responsible for the FCM, told theTRADEnews.com the expanded offering would give the buy-side capabilities traditionally limited to sell-side participants.
“Buy-side firms continue to demand greater tools to execute trades across asset classes and monitor risk profiles instead of relying on sell-side counterparts,” he said.
The firm’s futures execution capabilities now include access to more than 30 venues globally and third-party futures trading platforms and access to proprietary research for buy-side firms.
Cooper said the offering took into account increased client demand for swap futures through execution venues including Eris Exchange, which he said State Street’s FCM supported. He added that greater use of algorithms to execute futures trades was also key to the firm’s expanded futures execution services.
“As you see greater movement towards electronic trading in futures, the algorithms developed in the equities market will become more relevant to futures trading alongside greater buy-side demand to use such products to trade futures,” he said.