Global custodian State Street has extended the capabilities of its Alpha asset servicing platform to include the processing lifecycle for ETFs.
According to State Street, the new functions will support ETF issuers with portfolio management, trading and compliance capability.
The new service will also integrate the front-office functions of the order management system Charles River with State Street’s ETF servicing capabilities.
In that respect, it is an example of the developments that were envisaged when State Street acquired Charles River back in 2018 as asset servicers looked to stretch their product offerings beyond the back office.
The decision to add ETF servicing to the Alpha platform was a result of increased demand for exchange-traded products, said John Plansky, head of State Street Alpha.
“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 Plansky.
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