State Street Moves Into Derivatives With An Eye Toward Currency Overlay Products

State Street Bank & Trust Co. has since January been building its derivatives capabilities by adding new blood and improving internal systems. Now with new staff in place, the bank is putting a renewed focus on foreign exchange derivatives.

The Boston-based bank is taking a rather unconventional approach. Rather than set-up a full-blown derivatives desk, the bank is focusing on only the one area of risk management, with a three-member team in Boston running the global book. Although the desk is