State Street says it has developed an industry standard for online settlement instructions to reduce operational risk and create cost efficiencies within the foreign exchange trading industry.
State Street Global Markets, the investment research and trading arm of State Street Corp., has acquired SSISearch, a specialised service provider for international payment processing and settlement instructions. Developed with the help and assistance of the world’s largest settlement banks, SSISearch operates The Settlement Directory for CLS members. The central database provides asset managers, banks and other institutions with immediate access to verified standard settlement instructions via a secure website or State Street's Global Link network.
"We are pleased to be at the forefront of an important and innovative market development that will reduce risk and enhance efficiency in the rapidly growing foreign exchange market," says Simon Wilson-Taylor, executive vice president and worldwide head of Global Link for State Street. "In 2007, more than $3 trillion in foreign exchange was transacted daily globally with no single, cost-effective means for participants to centralise settlement details other than through individual duplicative databases."
State Street is pioneering the development of a single source of accurate contact information and fully authenticated standard settlement instructions to help reduce settlement risk and improve straight-through processing in the foreign exchange market.
"The acquisition expands our suite of products and is another step in State Street's strategy to provide neutral, open and integrated solutions that support the entire investment process from pre-trade through post-trade by streamlining communication for institutional investors worldwide," adds Wilson-Taylor.