State Street Corp. launched an over-the-counter derivative servicing platform.

The OTC Hub is being used by Pimco, an asset management unit of Munich's Allianz Group and a longtime State Street customer, the Boston company said last week.

The two companies have already beta-tested the global, end-to-end servicing platform.

The OTC Hub automates a number of stages in derivatives processing, including customer reporting, electronic trade flow, and the reconciliation of positions and cash flows between the middle and back offices.

The State Street platform also will reconcile data from the industry utilities and dealers to customer trade details and automates acquisition of vendor prices.

The platform allows for enhanced services and capabilities as the derivatives market evolves and industry technologies mature, State Street said.

Since 1999 the volume of derivatives contracts has surpassed $600 trillion a year, 83% of which is originated in the over-the-counter market.

As of June 30, State Street had $15.3 trillion of assets under custody and $1.9 trillion under management.

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