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State Street (STT) Completes CF Global Trading Acquisition

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State Street Corporation (STT - Free Report) completed the acquisition of CF Global Trading. STT entered the agreement in March 2023 in an effort to further expand its outsourced trading capabilities. Financial terms of the deal were undisclosed.

CF Global Trading specializes in outsourced trading on an agency basis for a variety of asset classes, including equities, listed derivatives and fixed income. Its established team of traders has helped asset managers extend global trading infrastructure, improve access to liquidity, streamline workflow, and reduce trading and infrastructure costs.

Dan Morgan, the global head of portfolio solutions at State Street, stated, “Outsourced trading enables organizations to access new asset classes, prepare for regulatory shifts and navigate global markets while allowing them to focus on their strategic outcomes on behalf of their clients. The addition of CF Global Trading brings industry-leading expertise that strengthens our current outsourced trading services. We welcome the CF Global team to State Street and look forward to the team complementing and enhancing our outsourced trading solutions globally.”

In addition to adding significant expertise to State Street’s outsourced trading services, clients can expect multi-asset class execution across equities, fixed income, exchange-traded derivatives and foreign exchange along with modular-based solutions. These will allow clients to outsource components of their trade execution without giving up control, as well as access to the front, middle and back office through State Street Alpha.

Scott Chace, the co-founder and CEO of CF Global, said, “We are very pleased to announce the close of this acquisition. Joining State Street allows our team to continue to build on our client platform and award-winning outsourced trading experience with the scale that comes with being part of one of the world’s largest institutional financial services providers.”

Over the past three months, shares of STT have gained 9.2%, underperforming the industry’s 20.4% growth.
 

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Currently, State Street carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inorganic Expansion Efforts by Other Firms

A couple of months ago, SEI Investments Company (SEIC - Free Report) acquired Altigo in order to meet increasing investor demand and expand in the alternative investments space. Altigo is a cloud-based technology platform that provides inventory, e-subscription and reporting capabilities for alternative investments.

SEIC is a leader in supporting sponsor firms’ operational and information needs. With the integration of Altigo within SEIC’s capabilities across intermediary wealth channels, the company will be able to deliver a broader end-to-end solution.

LPL Financial Holdings Inc. (LPLA - Free Report) took a minority stake in Independent Advisor Alliance (“IAA”), which is a hybrid registered investment advisory (“RIA”) firm focused on empowering financial advisors to succeed as independent business owners. The deal is among a few transactions wherein LPLA has taken a minority stake in a hybrid RIA and office of supervisory jurisdiction.

LPLA purchased a 20% stake in IAA, which had $16.8 billion in client assets under supervision and 226 financial advisors.


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