J.P. Morgans Agency Clearing, Collateral Management and Execution (ACCE) business, the new agency business within the Corporate & Investment Bank (CIB), has introduced daily portfolio reconciliation for its derivatives collateral management clients. The product is available through ACCEs ongoing partnership with TriOptima, provider of the derivatives portfolio reconciliation service, triResolve.
J.P. Morgan utilizes secure FTP technology to exchange trade files, becoming the first collateral agent to offer this additional level of security to its clients.
ACCE is a new business that comprises businesses formerly housed within the former Worldwide Securities Services and Investment Bank. ACCE provides agency clearing, collateral management and execution for CIB clients. across both the buyside and sellside.
John Rivett, Global Collateral Management Business Executive for ACCE, said, Daily portfolio reconciliation minimizes delays in identifying valuation differences, trade booking errors and other potential discrepancies. This lessens the likelihood of disputes and helps clients accelerate the resolution of any potential queries.
J.P. Morgan was an early adopter of portfolio reconciliation services, first offering it to clients in June 2008 to augment its innovative end-to-end derivatives collateral management solution. In accordance with ISDA best practice, portfolio reconciliation is a critical tool for managing risk.
The new product is one of several announced by J.P. Morgan ahead of Sibos next week to help clients to streamline their business and respond to a changing regulatory and technological landscape. The products and services, which span clients cash, liquidity, trade, clearing and custodial needs, include new products in WSS that help institutions manage their market risk through derivatives collateral management and tri-party collateral management.
Dinkar Jetley, J.P. Morgans head of Worldwide Securities Services, said: The evolving global regulatory situation presents a host of challenges for financial institutions that must comply with changing collateral and custody requirements. J.P. Morgan is a global bank recognized for its expertise, and we will continue to provide counsel and offer the products and services that our clients, and financial institutions generally require.
In addition to the daily portfolio reconciliation service, WSS has rolled out its Direct Custody & Clearing (DCC) platform, going live in Hong Kong and appointing Michael Drumgoole as Asia Pacific head of the business. Aside from local market expertise, global clients will benefit from access to all local market infrastructures, including exchanges, clearing houses and depositaries. Hong Kong is the latest market to join the firms international direct custody and clearing network, which currently includes Australia, Brazil, India, Ireland, New Zealand, Russia, Taiwan, the United Kingdom and the United States.
Other products include the next generation of J.P. Morgan ACCESS, an online banking portal for corporates, financial institutions and commercial banking clients. J.P. Morgan ACCESS provides treasury and investment professionals worldwide with a secure, single point of access to effectively manage their treasury operations online.
For payments, J.P. Morgan announced that MorganDirect Commercial (MDC), a web-based application for FX payments including execution, confirmation and settlement, will be available to financial institutions around the globe in 2013. The expansion will add new markets to those currently using the application in the Americas and EMEA. Beginning in 2013, the bank will be expanding its availability to three new branches in the Asia-Pacific region.
Additionally, J.P. Morgan announced the following mandate wins in cash management:
– J.P. Morgan Treasury Services will provide U.S. Dollar clearing and liquidity balance management services to the China operations of Bank of Taiwan, Chinatrust Commercial Bank, E.Sun Commercial Bank Limited and Mega International Commercial Bank Co.
– Separately, J.P. Morgan has been selected by Singapores DBS Bank to provide a full range of cash management services across several key growth markets in Asia – Australia, Japan, Korea, Malaysia, the Philippines and Thailand.
(JDC)