First of its kind partnership for State Street with clearing house underscores growing buy-side interest in sponsored repo
BOSTON--(BUSINESS WIRE)--Mar. 1, 2021--
State Street Corporation (NYSE: STT) today announced the first trade with ICE Clear U.S., a clearing house owned by Intercontinental Exchange, Inc. (NYSE: ICE), as a sponsored member counterparty. This announcement comes after ICE signed on as a Sponsored Member of State Street Bank and Trust within the Fixed Income Clearing Corporation (FICC) Sponsored Repo Program.
This partnership with a clearing house will be the first of its kind for State Street in an effort that underscores the continued expansion of the types of clients sponsored across jurisdictions. State Street now serves 145 clients and more than 1,900 individual entities1 including mutual funds, UCITS, alternative asset funds, insurers, state plans, Federal Home Loan and other banks and corporates, in twelve jurisdictions, including the United States, Canada, Cayman, Bahamas, Bermuda, British Virgin Islands, Belgium, Ireland, Luxembourg, Australia, Singapore and the United Arab Emirates.
“With clients’ continuing interest in securing a broader set of short-term investment and funding solutions, we’re taking steps to enable more of our buyside clients to unlock the benefits of centrally cleared repo without needing to satisfy all of the obligations of a direct clearing member,” said Gino Timperio, global head of Collateral Management and Financing. “ICE Clear U.S. is the first U.S. clearing house to enter into the sponsored program and we are truly pleased to have collaboratively established a cleared repo solution that supports ICE’s regulatory requirements and investment needs.”
State Street has long been a leader in the sponsored space across the number and types of clients it covers and aims to soon further expand its offering with term trading capabilities. In this effort, State Street worked with ICE Clear U.S. to determine the best way to support the clearing house’s specific investment needs.
“We are delighted to expand our relationship with State Street and appreciate its partnership in supporting ICE’s investment needs - with the safety inherent to trading with a highly rated credit institution, and the additional benefit of novated exposure to FICC, as a Sponsored Member thereafter,” said Kevin McClear, President of ICE Clear U.S. “State Street’s long standing commitment and thought leadership in this space was a differentiator and provides an enhanced approach for an even more safe and sound investment of clearing members’ funds.”
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $36.6 trillion in assets under custody and/or administration and $3.1 trillion* in assets under management as of September 30, 2020, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.
*Assets under management as of September 30, 2020 includes approximately $81 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company and provider of marketplace infrastructure, data services and technology solutions to a broad range of customers including financial institutions, corporations and government entities. We operate regulated marketplaces, including the New York Stock Exchange, for the listing, trading and clearing of a broad array of derivatives contracts and financial securities across major asset classes. Our comprehensive data services offering supports the trading, investment, risk management and connectivity needs of customers around the world and across asset classes. As a leading technology provider for the U.S. residential mortgage industry, ICE Mortgage Technology provides the technology and infrastructure to transform and digitize U.S. residential mortgages, from application and loan origination through to final settlement.
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1 As of January 31, 2021
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Source: State Street Corporation