J.P. Morgan has added its 40th derivatives collateral management client.
The firm now has more DCM clients than any other major competitor.
J.P. Morgan DCM clients are resident in markets including Canada, Denmark, Germany, Ireland, Luxembourg, the Netherlands, Norway, Switzerland, the UK and the US.
This client base includes asset managers, insurance companies, pension trusts, hedge funds, large supranational institutions, corporates, regional banks, governments and government agencies.
J.P. Morgan launched its DCM service in 2005, inaugurating the industry’s first end-to-end collateral management solution for OTC derivatives. DCM now manages balances of over USD70bn in collateral on behalf of clients.
Since its introduction, J.P. Morgan has expanded the offering to include portfolio matching and reconciliation services, as well as enhanced cash reinvestment options to facilitate optimal use of collateral. Additionally, in 2009 J.P. Morgan introduced a global tri-party product for the settlement and custody of derivatives collateral assets.
Kelly Mathieson (pictured), global head of clearance and collateral management at J.P. Morgan Worldwide Securities Services, says: “Effectively managing collateral is a critical risk management strategy and, increasingly, organisations are choosing an agent to handle the operational complexity of these transactions. We are proud that so many institutions have chosen J.P. Morgan as their trusted partner.”
J.P. Morgan DCM enables clients to better reduce their counterparty credit risk through effective and efficient collateralisation. Services include credit support annex management, margin demand, agreement and dispute management, automated OTC reconciliation, collateral eligibility testing, valuation and agreement, collateral settlement instruction and safekeeping, re-hypothecation, substitutions management, cash reinvestment and asset servicing.
