State Street has enhanced StreetFX, its FX trading service, in preparation for shorter settlement cycles. An automated workflow solution will now integrate StreetFX with Institutional Trade Processing (ITP) and the CTM central trade matching platform at Depository Trust and Clearing Corporation (DTCC), enabling it to receive settlement instructions from DTCC ITP for match agreed CTM transactions.
According to a press release from the bank, the new solution will allow StreetFX to automatically execute “the required FX trade necessary to fund the purchase or sale of the related securities transaction at the next scheduled execution time designated by the client, streamlining the FX lifecycle and enabling a faster no-touch post-trade processing workflow”.
Used together with CTM’s Match to Instruct (M2i) workflow, State Street claims that StreetFX will be able to execute FX trades “shortly after the affirmation of the securities trade and staging at the DTCC”. DTCC describes M2i as a workflow that can ”automatically trigger trade affirmation and delivery of DTC eligible securities directly to the DTC for settlement when a trade match between an investment manager and executing broker occurs”.