State Street has expanded the capabilities of its Alpha platform to support the entire lifecycle for exchange traded funds (ETFs).The new State Street Alpha for ETF Issuers offering integrates Charles River Development’s front-office products with State Street’s ETF servicing capabilities to provide end-to-end technology and processes for ETF issuers.
“In the first four months of 2023, growth in ETFs showed no sign of slowing. According to our internal research, ETFs had over $200 billion of inflows globally, the third highest total on record, bringing the total ETF market to approximately $10 trillion,” said John Plansky, head of State Street Alpha. “By optimising ETF workflows with consistent data, key analytics and more efficient basketing capabilities, asset managers are better equipped to drive investment decision making with access to near real-time data modernise their operating models as the ETF marketplace continues to grow.”
Issuers using the Alpha platform can make use of portfolio management, trading and compliance to enable growth across a variety of ETF strategies and increase speed to market.
The platform is designed as an open architecture structure to integrate with external ETF providers as well as State Street’s internal ETF systems. More broadly, State Street has also established a fully integrated middle office servicing model that has been tailored specifically for ETF issuers.
“For the past 30 years, State Street has continuously innovated to support what has become a $10 trillion ETF marketplace. Today State Street is the largest ETF administrator in the world with more than 2,700 ETFs serviced in 13 countries and provides fully integrated global ETF servicing capabilities. This heritage of expertise has been leveraged throughout the development of the Alpha Platform and reaffirms our position as the forefront leader in ETF servicing,” added Frank Koudelka, global ETF product specialist for State Street.
Earlier this year, the custodian added a Financial Information Exchange (FIX) application programming API to its Fund Connect ETF portal.
Available to all participants on the platform, the enhancement provides connectivity and electronic communication through an industry protocol used in electronic trading. Users will be able to send orders directly from their OMS to the ETF portal.