CALABASAS, Calif., October 28, 2002 - SunGard Treasury Systems, an operating group of SunGard (NYSE: SDS), today announced a strategic alliance that will connect SunGard's corporate treasury customers to State Street Corporation's (NYSE: STT) electronic FX trading platform, FX Connect, via SunGard's eTreasury eXchange (eTX).
FX Connect is the established leader in the multi-bank foreign exchange trading industry with a market share estimated recently by Tower Group at over 70%. SunGard Treasury Systems is also an established leader among treasury management solution providers with a client base comprising over 50% of the Fortune 1000 companies.
Now, the integration of eTX and FX Connect joins the leading electronic trading platform for foreign exchange with a leading provider of technology solutions for corporate treasury departments globally. Users of SunGard's treasury systems can initiate foreign exchange deal requests from within their treasury application, receiving bid and offer prices directly from the FX Connect platform. Once the trade is executed, the confirmation, settlement and posting to back office and accounting systems are fully automated, thereby achieving straight-through processing.
Straight-through processing helps to reduce the risk of error by eliminating the need for both users to manually key in trade details. It also helps to reduce the operational cost of trading on both sides and helps to improve trading efficiencies. eTX provides SunGard customers with real-time treasury functionality through seamless integration between SunGard's core treasury applications and the financial community for cash management services and execution services (trading, borrowing and investment).
FX Connect is offered via State Street's Global Link platform, delivering fact-based research, decision support tools, and trading technology for six asset classes to clients in 23 countries worldwide. The initial products to be offered to corporations through the State Street and SunGard partnership are: FX Connect and QuickFX for multibank trading, GTSS II for trade matching and confirmations, and a new product, AutoFX Connect, which has been specifically designed to meet the workflow and trading requirements of large corporations.
"There is strong demand from corporations for the solution we have announced today," said Simon Wilson-Taylor, head of Global Link at State Street Corporation. "Essentially, it's all about meeting client needs and no other platform has focused on customer issues the way we have. We delayed making a major push into the corporate FX market until we had the right solution, providing corporates with the same operational and bottom-line benefits that our institutional clients have enjoyed for nearly six years."
Greg Pond, group chief executive officer, SunGard Treasury Systems, added, "As a leading provider of systems for the corporate and institutional treasury markets, we're pleased to be partnering with State Street and bring our clients together with the leading electronic FX trading site. SunGard clients have stated clearly that they view full and seamless straight-through processing as a necessary part of this FX dealing service, and we're uniquely positioned to provide that connectivity."
Stanley W. Shelton, executive vice president of State Street Corporation, said, "FX Connect's success is largely due to our single-minded focus on providing meaningful straight-through processing benefits to the customer, in addition to open access to all the liquidity providers they need. Until today, FX Connect has concentrated almost exclusively on serving large global institutional investors and institutions. Our partnership with SunGard allows us to bring these efficiencies and benefits to the corporate marketplace in the most powerful way possible."
Cris Conde, president and chief executive officer, SunGard, commented, "This alliance fits perfectly with SunGard's business strategy; in today's world, connectivity determines success. Processes need to be automated end-to-end and integrated within companies and across businesses and time zones."