The Asset Update

J.P. Morgan expands securities offerings

12 Oct 2009 by Bayani S Cruz
J.P. Morgan continues to expand its securities services offerings in Asia Pacific in a bid to stay ahead of the competition after winning new mandates in the region. Last week, the firm launched two new products for its Asia-Pacific clients, this time focussing on collateral management and broker dealer fees on depositary receipts (DR). 
 
The first product, known as the “Projections & Simulations” service, is part of its securities collateral management product. Projections & Simulations provides securities' borrowers with a new and innovative set of tools to assess the impact of potential changes to their portfolios, helping them to minimize risk and expense while maximizing returns.
 
By using the Projections & Simulations service, borrowers can optimize their collateral allocations by viewing the results of "what if" scenarios that analyze both actual and synthetic portfolios. 
 
“They can preview the potential impact of adding new securities to the available asset pool or simulate various financing scenarios, modelling increased or decreased financing levels with each counterpart independently. This service provides clients with an aggregated view of securities already held at J.P. Morgan plus those held elsewhere, ultimately creating a hypothetical portfolio that shows all assets eligible to be allocated as collateral,” says John Rivett, global product head for securities collateral management, J.P. Morgan Worldwide Securities Services.
 
The second product is known as the Issuance & Cancellation Lock (I & C Lock), a new patent pending solution that allows broker dealer clients to purchase a contract that establishes a future rate for DR issuance and cancellation activity. By using I&C Lock, broker dealers will have the right, but not the obligation, to execute issuance and cancellation of DR transactions in the future at a predetermined rate. This will provide greater flexibility for meeting their DR investment and trading strategy objectives. The I&C Lock contracts are issued and maintained by J.P. Morgan’s DR execution desk. 
 
“As broker dealers gain greater control of their costs by moving DR fees from a variable to fixed cost structure, they will have incentive to trade more, which leads to greater liquidity in the marketplace,” said James Proctor, global head of J.P. Morgan’s DR Execution Desk.
 
In recent months, J.P. Morgan has been winning securities services related mandates from Asia-Pacific clients. On September 30 2009, J.P. Morgan was re-appointed as the depositary bank for Korea Electric Power Corporation (KEPCO)’s American Depositary Receipt (ADR) program. South Korea-based KEPCO is one of the fastest growing utilities company in the world. The group's principal activities are the transmission and distribution of electricity to industrial, general, residential, educational, agricultural, and street lamp sectors.
 

On June 25 2009, J.P. Morgan was selected by Sydney-based global investment manager Capital International Research, a subsidiary of Capital Group Companies, to provide a variety of services for the group’s suite of mutual funds recently launched to Australian and New Zealand investors. Under this mandate, J.P. Morgan will provide global custody for the administration of assets within the international equity fund, and Passive Currency Overlay Services for a hedged version of the fund. 



© Asset Publishing and Research Limited
All rights reserved. No unauthorized reproduction by any means.

The Asset Member

What's New

Related Articles