Markets and Financing

MARKETS AND FINANCING

DELIVERING INNOVATIVE MARKET SOLUTIONS

MARKETS AND FINANCING

Delivering Innovative Market Solutions

Eric Aboaf Eric Aboaf Vice Chairman and Chief Financial Officer
quotations

We are driving a combination of growth and returns by investing in the future functionality of our products and services and expanding our geographic reach, which is resulting in better outcomes for our clients.

Eric Aboaf Vice Chairman and Chief Financial Officer
Anthony Bisegna quotations

We are providing innovative liquidity, financing, and research solutions to investment professionals across the investment management process, on a global scale.

Anthony Bisegna Head of State Street Global Markets
quotations

We are driving a combination of growth and returns by investing in the future functionality of our products and services and expanding our geographic reach, which is resulting in better outcomes for our clients.

Eric Aboaf Vice Chairman and Chief Financial Officer

Markets and Financing at State Street encompasses the Global Markets and Global Credit Finance businesses, which deliver industry-leading solutions to institutional investors globally.

Markets and Financing spans foreign exchange (FX) trading and securities finance solutions, and credit lending across many client types, including corporations, insurance companies, and investment advisors. Our lending products range from private credit lending and fund finance, to commercial real estate lending and municipal finance. Through these business units, we aim to be the premier global provider of liquidity, financing, research, and credit for institutional clients.

ACHIEVING STRONG PERFORMANCE IN VOLATILE MARKETS

We have grown our Markets and Financing businesses by efficiently deploying capital and investing in technology across our FX trading, securities finance, and credit lending capabilities. Our Global Markets and Global Credit Finance franchises are leading providers of value-added solutions designed to enhance our clients' investment processes.

Global Markets

Global Markets recorded strong results, with FX trading services revenues increasing 14 percent in 2022 compared to 2021, demonstrating the benefits of our diversified business model. Once again, Global Markets earned considerable industry recognition. In the 2022 Euromoney FX survey, we were ranked No. 1 in Real Money Market Share and No. 1 Best Service for Real Money clients (up from No. 2 in 2021), and our FX business ranked fourth largest globally, across all client types.

Throughout the year, Global Markets provided clients with much-needed liquidity across a number of our products, including the Direct, Indirect, and StreetFX trading solutions, GlobalLink, and our algorithmic trading offerings. We expanded our FX trading capabilities with private market clients, where we see significant growth opportunities, and our industry-leading currency management solutions continued to garner strong client demand in their 30th year of business.

Our securities lending businesses, Agency Lending and Enhanced Custody, offer distinctive solutions. Our Agency Lending business ranks third globally in terms of on-loan balances, underscoring our noteworthy supply and distribution capabilities. Moreover, clients benefit from the ability to borrow and lend with our principal arm, Enhanced Custody, creating incremental utilization.

Similarly, our sponsored repo volumes (through the Fixed Income Clearing Corporation) reached over $100 billion, benefiting from a rising interest rate environment.

These products have served clients well over the past year and further demonstrate our commitment in this space. Collectively, our aggregate efforts in the financing space are aimed at advancing solutions for the buy side.

Global Credit Finance
Anthony Bisegna quotations

We are providing innovative liquidity, financing, and research solutions to investment professionals across the investment management process, on a global scale.

Anthony Bisegna Head of State Street Global Markets

Global Credit Finance performed well, increasing profitability and generating strong return on capital. Our lending business is synergistic with our overall custody core business and serves as yet another way to meet client needs, thus generating value for shareholders.

We are a market leader in providing liquidity and financing to real money funds, and continue to expand our presence in alternatives, including private equity funds and business development companies. The steady growth of our loan portfolio in 2022 helped us further gain recognition as a leading global provider of financing, while our diversified capital call financing remains a compelling financing offering in a world where bank capital is in short supply. These offerings have helped enhance our core alternatives servicing products, as well as attract fund administration clients to State Street.

DRIVING BETTER CLIENT OUTCOMES WITH INNOVATIVE SOLUTIONS

We are focused on providing clients with specialized solutions and tools to help them better serve their clients. In 2022, our Global Markets business continued to innovate, expand our capabilities, and leverage technology to increase productivity, including through our new peer-to-peer repo platform, Venturi.

Venturi is a first-of-its-kind, peer-to-peer financing platform specifically designed to connect buy-side firms with new sources of liquidity in the global repo space. We believe Venturi will empower our clients to discover new liquidity pools and make better, data-driven investment — especially important in times of elevated market volatility and changing environments for liquidity and rates.

Top Industry Recognition

For Global Markets
FX Sales & Trading
  • Ranked No. 1 in Real Money Market Share (Euromoney FX Survey 2022)

  • Ranked No. 1 Best Service for Real Money Clients (Euromoney FX Survey 2022)

  • Ranked No. 4 in Overall Market Share, across all client types (Euromoney FX Survey 2022)

  • Outstanding FX Settlement Bank

    (Bond Connect Awards 2022)
GlobalLink
  • Ranked No. 1 Multi-Dealer Platform by Volume — FX Connect® & Currenex® (Euromoney FX Survey 2022)

  • Ranked No. 1 for Best Service for Multi-Dealer Platforms for the 5th consecutive year — FX Connect® & Currenex® (Euromoney FX Survey 2022)

  • Best Transaction Cost Analysis — BestX (GW Platt Best FX Tech Awards 2022)

Financing Solutions
  • Ranked No. 3 in Assets on Loan (S&P Global Market Intelligence — Securities Finance, as of December 31, 2022)

  • Global Lender of the Year

    (Securities Finance Times 2022)
  • Americas Lender of the Year

    (Securities Finance Times 2022)
  • ESG Initiative of the Year

    (Securities Finance Times 2022)
  • One of the Largest Sponsored Member Repo Providers (Internal repo volumes versus total FICC volumes reported by FICC / DTCC)

  • Best in Securities Lending for the 8th consecutive year (The Asset Triple A Awards 2022)

Global Markets Research
  • Ranked No. 1 in Macro and Quant Research (Euromoney FX Survey 2022)

  • Doriot Award for Best Private Equity Research Paper (2022)

  • Roger F. Murray First Prize for Best Paper Presented at the Q Group Seminars (2022)

  • Bernstein-Fabozzi / Jacobs-Levy Outstanding Paper Award (2022)

FX Sales & Trading
  • Ranked No. 1 in Real Money Market Share (Euromoney FX Survey 2022)

  • Ranked No. 1 Best Service for Real Money Clients (Euromoney FX Survey 2022)

  • Ranked No. 4 in Overall Market Share, across all client types (Euromoney FX Survey 2022)

  • Outstanding FX Settlement Bank

    (Bond Connect Awards 2022)
GlobalLink
  • Ranked No. 1 Multi-Dealer Platform by Volume — FX Connect® & Currenex® (Euromoney FX Survey 2022)

  • Ranked No. 1 for Best Service for Multi-Dealer Platforms for the 5th consecutive year — FX Connect® & Currenex® (Euromoney FX Survey 2022)

  • Best Transaction Cost Analysis — BestX (GW Platt Best FX Tech Awards 2022)

Financing Solutions
  • Ranked No. 3 in Assets on Loan (S&P Global Market Intelligence — Securities Finance, as of December 31, 2022)

  • Global Lender of the Year

    (Securities Finance Times 2022)
  • Americas Lender of the Year

    (Securities Finance Times 2022)
  • ESG Initiative of the Year

    (Securities Finance Times 2022)
  • One of the Largest Sponsored Member Repo Providers (Internal repo volumes versus total FICC volumes reported by FICC / DTCC)

  • Best in Securities Lending for the 8th consecutive year (The Asset Triple A Awards 2022)

Global Markets Research
  • Ranked No. 1 in Macro and Quant Research (Euromoney FX Survey 2022)

  • Doriot Award for Best Private Equity Research Paper (2022)

  • Roger F. Murray First Prize for Best Paper Presented at the Q Group Seminars (2022)

  • Bernstein-Fabozzi / Jacobs-Levy Outstanding Paper Award (2022)

+$100B

In sponsored repo values

No. 1

In macro and quant research

PROVIDING INDUSTRY-LEADING RESEARCH AND MARKET INDICATORS
+$100B

In sponsored repo volumes

No. 1

In macro and quant research

Global Markets' research, which comprises our Multi-Asset Strategists and State Street Associates®, continued to deliver significant value to our clients in 2022 by providing differentiated market insights and thought leadership powered by proprietary data sets, research, and academic partnerships — all of which are delivered on one platform: State Street Insights.

In 2022, we saw a substantial increase in client utilization, illustrating the value to our clients. In the 2022 Euromoney FX Survey, we ranked No. 1 in Macro and Quant Research. Our PriceStats product — a world leader in high-frequency inflation analytics — was of particular interest to our clients given the heightened focus on inflation this past year. The PriceStats data series provides daily measures of inflation in 24 countries by monitoring online price changes on millions of products sold by online retailers.

This flagship offering helps clients manage inflation risk and make better-informed asset allocation decisions. We are also developing new types of differentiated equity and ESG research to help clients generate enhanced returns.

LOOKING AHEAD

In 2023, we will continue to develop innovative products to help our clients grow and drive geographic expansion, particularly by investing in technology to develop state-of-the-art trading products, extending regional FX capabilities in Europe, Asia Pacific, and Latin America, and enhancing our securities finance offering in Europe. We will also continue to expand our credit syndication offering, taking a targeted growth approach within certain products.

Our Markets and Financing business will continue to reinforce the firm's diversified growth trajectory in an increasingly capital-efficient way. As we advance our strategic growth agenda by leveraging technology and best-in-class partnerships to increase productivity, enhance the client experience, and create new revenue opportunities, we will continue to serve as a leading provider of liquidity, financing research, and credit to institutions worldwide.

Details 04/23/2022