State Street confirms CF Global acquisition

Deal, first revealed by Global Custodian's sister publication The TRADE in February, is expected to close by end-2023 and will bump State Street into the ranks of outsourced trading giants such as Northern Trust and UBS.

By Annabel Smith

State Street has confirmed it has entered into a definitive agreement to acquire outsourced trading firm, CF Global, as first revealed by Global Custodian’s sister publication The TRADE, in February. 

The deal is expected to be completed by the end of 2023, subject to closing conditions. Financial terms were not disclosed.

Once completed, the deal will give State Street access to CF Global’s extensive relationships in the space as a segregated outsourced trading entity. State Street currently offers outsourced trading in the Americas, APAC and Middle East and CF Global will extend this remit to the UK and Europe.

The deal will also allow it to offer a complete global trading solution as part of its front-to-back State Street Alpha platform. Clients can expect greater capabilities in multi-asset class execution, modular-based solutions, and 24-hour global trading following the completion of the deal, State Street said.

“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,” said Dan Morgan, global head of portfolio solutions at State Street, in a statement.

“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.”

The possibility of a CF Global acquisition is rumoured to have been on the table for several years, according to sources, with a number of interested parties circling. The acquisition is believed to have been agreed in the third quarter of last year but was subject to unconfirmed delays, The TRADE understands.

After closing, the new combined State Street footprint for outsourced trading will include trading desks in Boston, New York, Toronto, London, Lisbon, Hong Kong and Sydney.