New York, NY – According to a Press Release, State Street Corporation agreed this morning to purchase Boston-based agency broker, Pulse Trading. Besides offering traditional high touch agency brokerage services, Pulse Trading also provides electronic trading technology, and it markets independent research services to its buy-side clients. See below for more details on the acquisition.
State Street to Acquire Pulse Trading
BOSTON–(BUSINESS WIRE)–State Street Corporation (NYSE: STT), one of the world’s leading providers of financial services to institutional investors, announced today that it has entered into an agreement to acquire Pulse Trading, Inc. The deal is expected to close in the fourth quarter of 2011, pending regulatory and other closing conditions.
Pulse Trading is a full service agency brokerage firm headquartered in Boston with a range of electronic trading capabilities that include block crossing and blotter scraping technology. The transaction includes the acquisition of Pulse Trading’s institutional equities business and approximately 40 employees in Boston, New York, St. Louis and San Francisco.
“We look forward to joining State Street where we will continue bringing best-in-class trading technology to our institutional clients,” said Christian Dubois, managing partner at Pulse Trading. “The combination of our products with State Street’s scale and institutional client base will allow us to expand our reach.”
“The acquisition of Pulse Trading is a natural extension of State Street Global Markets’ neutral, agency model,” said David Puth, executive vice president of State Street Global Markets. “Pulse Trading’s sophisticated technology and block trading capabilities will expand the number of execution venues and the range of electronic trading tools available to our clients and ultimately help lower their trading costs.”
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 $22.8 trillion in assets under custody and administration and $2.1 trillion* in assets under management at June 30, 2011, State Street operates in 26 countries and more than 100 geographic markets worldwide. For more information, visit State Street’s website at www.statestreet.com.
*This AUM includes the assets of the SPDR Gold Trust (approx. $58 billion as of June 30, 2011), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors serves as the marketing agent.
About Pulse Trading
Pulse Trading, Inc. is a national agency brokerage firm offering a broad range of services to meet the high demands of institutional investors seeking best trade executions, investment technology and customer support in today’s fast-changing securities markets.
This news release contains forward-looking statements as defined by United States securities laws, including statements relating to our agreement to acquire Pulse Trading, Inc. and the impact of that acquisition and related rationales, as well as about our goals and expectations regarding our business, financial condition, results of operations, investment portfolio performance and strategies, the financial and market outlook, governmental and regulatory initiatives and developments, and the business environment. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “plan,” “expect,” “look,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” and “goal,” or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any date subsequent to September 21, 2011.
Important factors that may affect future results and outcomes include, but are not limited to:
- the ability to obtain regulatory approvals for the transaction announced in this news release and the satisfaction of other closing conditions for that transaction;
- the risks that acquired businesses will not be integrated successfully, or that the integration will take longer than anticipated, that expected synergies will not be achieved or unexpected disynergies will be experienced, that client and deposit retention goals will not be met, that other regulatory or operational challenges will be experienced and that disruptions from the transaction will harm relationships with clients, employees or regulators;
- the manner in which the Federal Reserve and other regulators implement the Dodd-Frank Act and other regulatory initiatives in the U.S. and internationally, including any increases in the minimum regulatory capital ratios applicable to us and adjustments that result in changes to our operating model or other changes to the provision of our services in order to comply with or respond to such regulations;
- required regulatory capital ratios under Basel II and Basel III, in each case as fully implemented by State Street and State Street Bank (and in the case of Basel III, when finally adopted by the Federal Reserve), which may result in the need for substantial additional capital or increased levels of liquidity in the future;
- changes in law or regulation that may adversely affect our, our clients’ or our counterparties’ business activities and the products or services that we sell, including additional or increased taxes or assessments thereon, capital adequacy requirements and changes that expose us to risks related to compliance;
- financial market disruptions and the economic recession, whether in the U.S. or internationally;
- the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities, and the liquidity requirements of our clients;
- increases in the volatility of, or declines in the levels of, our net interest revenue, changes in the composition of the assets on our consolidated balance sheet and the possibility that we may be required to change the manner in which we fund those assets;
- the financial strength and continuing viability of the counterparties with which we or our clients do business and to which we have investment, credit or financial exposure;
- the credit quality, credit agency ratings, and fair values of the securities in our investment securities portfolio, a deterioration or downgrade of which could lead to other-than-temporary impairment of the respective securities and the recognition of an impairment loss in our consolidated statement of income;
- delays or difficulties in the execution of our previously announced business operations and IT transformation program, which could lead to changes in our estimates of the charges, expenses or savings associated with the planned program, resulting in increased volatility of our earnings;
- the maintenance of credit agency ratings for our debt and depository obligations as well as the level of credibility of credit agency ratings;
- the ability to complete acquisitions, divestitures and joint ventures, including the ability to obtain regulatory approvals, the ability to arrange financing as required and the ability to satisfy closing conditions;
- the performance of and demand for the products and services we offer, including the level and timing of redemptions and withdrawals from our collateral pools and other collective investment products;
- the possibility that our clients will incur substantial losses in investment pools where we act as agent, and the possibility of significant reductions in the valuation of assets;
- our ability to attract deposits and other low-cost, short-term funding;
- potential changes to the competitive environment, including changes due to the effects of consolidation, and perceptions of State Street as a suitable service provider or counterparty;
- the level and volatility of interest rates and the performance and volatility of securities, credit, currency and other markets in the U.S. and internationally;
- our ability to measure the fair value of the investment securities on our consolidated balance sheet;
- the results of litigation, government investigations and similar disputes or proceedings;
- our ability to control operating risks, data security breach risks, information technology systems risks and outsourcing risks, and our ability to protect our intellectual property rights, the possibility of errors in the quantitative models we use to manage our business and the possibility that our controls will prove insufficient, fail or be circumvented;
- adverse publicity or other reputational harm;
- our ability to grow revenue, attract and/or retain and compensate highly skilled people, control expenses and attract the capital necessary to achieve our business goals and comply with regulatory requirements;
- the potential for new products and services to impose additional costs on us and expose us to increased operational risk;
- changes in accounting standards and practices; and changes in tax legislation and in the interpretation of existing tax laws by U.S. and non-U.S. tax authorities that affect the amount of taxes due.
Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2010 Annual Report on Form 10-K and our subsequent SEC filings. We encourage investors to read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this presentation speak only as of the date hereof, September 21, 2011, and we do not undertake efforts to revise those forward-looking statements to reflect events after that date.
State Street Corporation
Alicia Curran Sweeney, +1-617-664-3001