State Street's Mapmaker

By Leander, Tom | Global Finance, September 1999 | Go to article overview

State Street's Mapmaker


Leander, Tom, Global Finance


MEET STANLEY SHELTON, THE MAN CHARGED WITH APPLYING INTELLECTUAL CAPITAL TO STATE STREET'S ENORMOUS SET OF FLOW-OF-FUNDS DATA.

Something like a scene in this summer's blockbuster movie The Mummy has befallen Stan Shelton and the masterminds of State Street's ssgloballink.com. In the movie, adventurers stumble into a cave, which by torchlight reveals the treasures of dynastic Egypt. Shelton exhibited some of this awe when State Street gave him the go-ahead to begin developing a proprietary site for fund managers and plan sponsors that delivers a spectacular menu of analytics and flowof-funds information based on the huge data set available to State Street via its $4.7 trillion portfolio of assets under custody. He's like a banker who has stumbled on King Tut.

"What we realized when we fully thought through what we could do with Globallink," says Shelton,"was that we could add enormous value to the information already at hand. Someone once said to me that the world has tons of information about prices but nothing about quantity." He adds: "What we're doing is offering the first high-frequency-level quantity data available."

Like all custodians, State Street handles reams of information about the investments in its custody portfolio.This information is distilled and distributed electronically to money managers and plan sponsors. Looking after these data is more than a simple custodial task. Delivering the information in a palatable and concise manner-all electronically-is one way in which custodians vie with each other to win clients in a business that has, as the phrase goes, become increasingly commoditized. The interpretation of information about the flow of those investments and their effect on markets is a specialty that only the largest custodial banks could deliver.

Shelton moved to London as general manager of State Street's office in 1989, fresh from a two-year stint setting up the company's treasury division in Hong Kong. It was in London that he and other executives at the bank began talking about the possibility of mining State Street's trove of flow-of-funds data. "We have annual brainstorming meetings, and we began talking about new ways to package the information at our disposal and making forays into the academic community." The talks continued through 1993, when Shelton says they had a "better idea of what we wanted to do, although we realized that the network capabilities were simply not yet available for us to realize our goals." That's when State Street struck a partnership with Bridge Information Systems, a company that offers trading systems and realtime market information via its server over local area networks to money managers. The partnership gave State Street the infrastructure to deliver the data directly to its client base over a Bridge network. The idea was to create a system that both allowed on-line trading in currency and equity markets and delivered analytics and strategy tools designed specifically for fund managers.

With the delivery capability intact, State Street began designing the service for money managers that Shelton describes as "aa way to unify the investment process from idea generation to portfolio construction and risk measurement to trade execution, settlement, and confirmation. We also wanted to integrate on-line currency, equity, and cash trading capabilities with the entire investment process.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

State Street's Mapmaker
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.