Yahoo Finance State Street (STT) Enters Deal to Acquire CF Global Trading
In an effort to further expand its outsourced trading capabilities, State Street Corporation STT has agreed to acquire CF Global Trading. Financial terms of the deal, expected to close by the end of 2023, have not been disclosed.
CF Global Trading specializes in outsourced trading on an agency basis for a variety of asset classes, including equities, listed derivatives and fixed income. Its established team of traders has helped asset managers extend global trading infrastructure, improve access to liquidity, streamline workflow, and reduce trading and infrastructure costs.
This acquisition is expected to further expand State Street’s current outsourced trading. Clients can expect the ability to provide outsourced trading services to new clients and markets.
In addition to adding significant expertise to State Street’s outsourced trading services, clients can expect multi-asset class execution across equities, fixed income, exchange-traded derivatives and foreign exchange along with modular-based solutions that allow clients to outsource components of their trade execution without giving up control, as well as access to the front, middle and back office through State Street Alpha.
Clients can also expect 24-hour global trading capabilities across multi-asset classes via a transparent, broker neutral, agency model offering, along with reduced operational risk and potential cost savings.
Dan Morgan, the global head of portfolio solutions at State Street, informed, “Market volatility, margin compression, increased regulation and cost pressures have presented multiple challenges for investment managers. Survival and growth depend on the ability to streamline processes, reduce costs and integrate infrastructure to allow more focus on core competencies of investment selection and alpha generation. With the addition of CF Global Trading, we add scale and significant expertise to our outsourced trading services that will complement and help further bolster our current offerings.”
Scott Chace, the co-founder and CEO of CF Global Trading, stated, “This is a very exciting day for all of us at CF Global Trading. Our team has worked with our clients for 20+ years to develop a global, multi asset class execution platform with a focus on accessing liquidity, improving workflows and reducing costs. We look forward to joining the State Street team and continuing to build on our client platform and experience with the scale of one of the world’s largest institutional financial services providers.”
Over the past six months, shares of STT have gained 16.1% against the industry’s decline of 2.4%.
Image Source: Zacks Investment Research
Currently, State Street carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Expansion Efforts by Other Firms
Recently, JPMorgan JPM entered an agreement to acquire Aumni. Founded in 2018, Aumni provides investment analytics software to venture capitalists. The financial terms of the deal, expected to close in the first half of 2023, were not disclosed.
The acquisition strengthens JPM’s commitment to building a leading private markets platform for companies, their employees and investors, as well as its confidence in the resilience of the venture-backed ecosystem.
New York Community Bancorp, Inc. NYCB announced that its bank subsidiary, Flagstar Bank, acquired $38 billion in assets and assumed $36 billion of liabilities of Signature Bridge Bank, N.A., from the Federal Deposit Insurance Corporation.
The deal comes after Signature Bank was closed by the regulators, following the collapse of Silicon Valley Bank. The FDIC took over the fallen bank and transferred all the deposits and substantially all the assets to Signature Bridge Bank, N.A.
NYCB received all the required regulatory approvals, including approval from the Office of the Comptroller of the Currency, and the deal has been closed.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
State Street Corporation (STT) : Free Stock Analysis Report
New York Community Bancorp, Inc. (NYCB) : Free Stock Analysis Report
