Global Markets

With the goal of enhancing and preserving the value of client portfolios, Global Markets delivers foreign exchange (FX) trading, securities finance solutions, agency execution services, and cutting-edge trading platforms across client types, including asset managers, asset owners, alternatives asset managers, and corporates. These solutions are supported by our extensive proprietary research and insights.

In 2024, we helped clients achieve their investment goals by providing a comprehensive suite of products and solutions spanning liquidity, financing, and research. At the same time, we prioritized generating value for the firm, aligning client outcomes with strategic priorities.

Our efforts resulted in an 11 percent increase in FX trading services revenue, and contributed to a second consecutive year of record net interest income. These gains were driven by strong trading volume and disciplined execution focused on delivering long-term growth for clients.
 

Advancing innovation to support client success

Throughout the year, volatility, regulatory changes, and geopolitical uncertainty shaped global capital markets, challenging investors to adopt shorter settlement cycles, adapt to market complexities, and manage risk effectively. We provided investors with much-needed liquidity, financing, and research through a diverse range of solutions, including electronic trading platforms and liquidity trading tools.

By investing in transformative technologies and tailored solutions, we helped clients improve their investment outcomes and achieve sustainable growth.

In 2024, we continued to strategically refine and expand our product capabilities and geographical reach to drive growth and better outcomes for our clients. We delivered partnered trading solutions across multiple asset classes and strategies, helping our clients navigate regulatory challenges, such as the transition to T+1 settlement cycles. To address the growing complexity faced by buy-side trading desks, we have expanded our algo and electronic trading solutions across global markets.

Additionally, we developed high-performing algorithm monitoring capabilities and refined our venue/order routing logic to support more accurate analysis.

Amid rising demand for greater efficiency and accuracy in an ever-evolving financial landscape, we executed several strategic initiatives, including:

• StreetFX^SM and Indirect FX: Service options that address the risks and challenges of the T+1 settlement cycle, reducing operational bottlenecks and enhancing trade execution speed
• BestXecutor^SM: A first-of-its-kind decision augmentation tool that improves trading precision and reduces execution costs across client portfolios
• LINK^TM: A new smart desktop platform that brings together State Street Global Markets’ suite of trading, analytics, and research solutions into a single, seamless digital environment
• FX Portfolio Algo: A workflow solution that allows traders to optimize a large number of trades simultaneously
  
  

In 2024, we reinforced our support for European investors by increasing access to our innovative strategies, including FX, secured fund financing, sponsored member repo, and partnered trading, aligning with market trends and evolving investment priorities.

In Asia Pacific, we became the first registered foreign institution to participate in the onshore inter-bank FX market in Korea and expanded our capabilities to access the Korean FX market offshore.

We augmented our award-winning suite of electronic trading platforms, GlobalLINK, improving transparency and efficiency for clients worldwide. For instance, during the year, GlobalLINK’s Fund Connect ETF portal supported several new
ETF launches, including the debut of the first U.S.-listed Bitcoin ETFs.

State Street Associates brings together leading academics with deep industry expertise to deliver unique insights and advanced research tools that help clients navigate market complexities and make better decisions. In 2024, this hub for quantitative research continued to add value for clients by providing them differentiated analysis and data, together with proprietary market indicators, which empower them to meet their investment goals.

To help investors navigate an increasingly complex global landscape, we announced a new academic partnership with Daniel Drezner, professor of International Politics at The Fletcher School of Law and Diplomacy at Tufts University, bringing fresh perspectives on geopolitical risk. He joins a team of renowned academics with specialized expertise in asset allocation, risk management, portfolio construction, private markets, sustainable investing, investor behavior, distributed ledger technology, media sentiment, inflation, and economics.

Underscoring the depth and relevance of our research, our academic partners and internal subject-matter experts provided clients with topical insights on market and investment trends at our 2024 Research Retreat, held annually in key global financial hubs.

In addition to expanding our research collaborations, we enhanced our suite of capabilities that aid investors in managing risk and capturing opportunities.

In 2024, we launched multiple key market indicator tools to improve decision-making and accuracy, including:

• Relevance-Based Prediction API: The first in a suite of application programming interface (API) engines that allows clients to apply our proprietary relevance-based prediction analytics to their own data, research, and workflows
• Machine Learning Stock Selection Model: A powerful model that blends data and metrics with macro intelligence designed to predict sector-relative performance of U.S. large-cap stocks
• Stock Explorer: A stock screening tool to analyze and predict sector-specific relationships between drivers and returns in U.S. large-cap equities

These innovations reflect our commitment to acting as a trusted partner to institutional investors, helping them leverage advanced tools and proprietary data to achieve superior investment outcomes.

In 2025, Global Markets will aim to capture greater market share by investing in our core offerings and expanding our reach across new products, markets, and client segments.

As part of our growth strategy, our efforts are centered on deepening market engagement and driving further product innovation. Through these efforts, we will broaden our presence in key regions, including the Middle East, Continental Europe, Asia Pacific, and Latin America.

As a trusted partner to investors, we will continue to optimize our platform with next-generation tools and services, fostering deeper client relationships and equipping clients with an information edge.