JPMorgan Investor Services announced today that INVESCO Asset Management Ltd., part of AMVESCAP Group, is using JPMorgan’s Trade Settlement Tracking and Relative Ranking System (JPMorgan’s TradeS.T.A.R.R.SM) to measure the operational efficiency of its brokers.
S.T.A.R.R. is a web-based software application that measures, analyzes and ranks the settlement efficiency of broker-dealers, both within and across markets. The application is designed to help asset managers analyze their particular trade settlement experience with broker/dealers against a relevant universe.
“TRADES.T.A.R.R can be used by Investment Managers and Broker Dealers to lower the operational risks and exception processing costs they incur as a result of failed trades,” says John Phinney, JPMorgan Investor Services Information Products Senior Executive. “JPMorgan’s TradeS.T.A.R.R. enhances INVESCO’s ability to assess and improve a specific broker-dealer’s settlement performance, while identifying risk trends and cost patterns that if not corrected could adversely impact performance returns..”
Chris Edge, JPMorgan Investor Services EMEA Corporate Development Executive, adds:”TRADES.T.A.R.R. is one product within an incremental suite of products aimed at helping fund managers and plan sponsors truly understand the impact of the costs of their trading activities. This requirement has recently been thrown into sharper relief following the Myners Report and the Sandler Report’s suggestions that the market adopt the Myners principle for retail as well as institutional asset management.”
“JPMorgan’s TradeS.T.A.R.R. is a cost effective means to add tremendous value to our broker review process which helps us to better manage our broker post execution relationships and translates into an ability to improve our efficiency,” says Jon Thompson, Head of Investment Administration at INVESCO Asset Management Limited.
“With an enhanced decision making process, we can alleviate operational risk due to trade failure – a capability of utmost importance given today’s market volatility.”