State Street Announces Enhancements to Derivatives Service Offering Including New GASB Reporting Tools
State Street’s OTC Derivatives Platform Now Services More Than 190 Clients
BOSTON — State Street Corporation (NYSE: STT), one of the world's leading providers of financial services to institutional investors, announced today that it has strengthened its derivative servicing capabilities with a number of new enhancements. The enhancements will help clients prepare for pending regulatory changes impacting the derivatives industry.
State Street recently introduced new Government Accounting Standards Board (GASB) reporting services designed to help public pension funds comply with the GASB Statement Number 53, Accounting and Financial Reporting for Derivatives Instruments. The new GASB requirements are aimed at providing a better understanding of the nature of derivative transactions as well as their associated risks.
State Street’s on-demand reporting capabilities help clients meet additional disclosure requirements for the types and fair value of derivatives entered into as well as their associated risks, including credit risk, interest-rate risk and foreign-currency risk. The GASB 53 service joins State Street’s suite of regulatory reporting capabilities for derivatives, which includes FASB 161 and 157, aimed at providing greater transparency into client portfolios.
“State Street continues to introduce new products and functionality to automate processes while helping clients comply with new regulatory requirements,” said Pat Centanni, executive vice president and head of global product management at State Street. “Our derivatives servicing and reporting capabilities place us at the forefront of the industry and allow our clients to stay ahead of the changing marketplace.”
State Street has also added its 192nd client to the OTC Hub, its derivative servicing platform. The OTC hub spans the full life cycle of a trade, from execution to maturity, automating processing across the middle and back offices, including electronic trade flow, allocations, reconciliation of positions and cash flows between the middle and back offices, settlement and client reporting. The hub uses industry-standard Financial products Markup Language (FpML) to link to industry utilities and third-party providers. The platform is integrated with State Street’s OTC service to value derivatives, an independent service providing valuations and validations to reduce pricing risk. The hub is also integrated with State Street's comprehensive collateral management services to help mitigate counterparty risk.
About State Street
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors, including investment servicing, investment management, and investment research and trading. With $19 trillion in assets under custody and administration and $1.9 trillion in assets under management at March 31, 2010, State Street operates in 25 countries and more than 100 geographic markets worldwide. For more information, visit State Street at www.statestreet.com.