A State Street news release said with State Street’s Assisted Trading service, authorized participants, typically market makers or specialists who obtain the underlying assets to create ETFs, can simultaneously enter the ETFs they want to trade and identify any restricted shares via State Street’s FundConnect platform. Restricted shares are securities that are not eligible for proprietary trading and change daily based on underwriting, mergers, investments and other activities.
Using this capability, according to State Street, the restricted shares are segregated and sent to State Street Global Markets, the company’s investment research and trading arm, to be traded. This process ensures that the authorized participant is completely in compliance with all regulatory and exchange requirements when trading ETFs, the company said.
The Assisted Trading service is accessed through FundConnect, State Street’s online trading platform for ETFs, which is integrated with State Street’s transfer agency recordkeeping platform. The transfer agent releases the approved orders to the ETF accounting platform and the depository via DTCC Fast.