J.P. Morgan’s Depositary Receipts (DR) Group is launching Issuance & Cancellation (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 purchasing an I&C Lock, broker dealers will have the right, but not the obligation, to execute issuance and cancellation 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.
“The I&C Lock solution further demonstrates J.P. Morgan’s leadership and innovation in the DR marketplace,” says Claudine Gallagher, global head of J.P. Morgan’s DR group. “No other depositary bank can offer this patent pending product today.”
“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,” says James Proctor, global head of J.P. Morgan’s DR Execution Desk.
D.C.