JPMorgan Worldwide Securities Services says it has successfully integrated and upgraded its US and international GlobeClear clearance capabilities to improve processing efficiency.
As part of the initiative, JPMorgan made a multimillion dollar investment in its US Agent Bank Clearing product, to expand its core clearance and custody systems to improve settlement of securities processes through the Depository Trust & Clearing Corporation.
This investment allows JPMorgan clients around the world who invest in US securities to benefit from:
segregated participant accounts, eliminating traditional limitations of omnibus account structures.
minimizing delivery fails and their associated financing.
rehypothecation, permitting straight-through processing of all repurchases and loans.
securities payment orders, processed automatically to better support the US stock loan business.
SWIFT Messaging, which is expanded to improve access to comprehensive information about settlement status and corporate action / income information on rehypothecated positions.
“JPMorgan has long been a participant in US domestic off-exchange clearance, and this investment and upgrade enables us to offer what we believe is a new standard for integrated global clearance,” says Ed Corral, clearance and settlement business executive at JPMorgan Worldwide Securities Services. “As markets continue to become global, the convergence between US and international clearance becomes increasingly important.”
The market leader in US Government clearance and settlement, JPMorgan handled 52 percent of total clearing bank volumes in 2006, it says. In addition to its premier Agent Bank Clearing product, JPMorgan’s GlobeClear product facilitates clearance for 20 exchanges and more than 60 OTC markets (including the Federal Reserve and DTCC) through a single access point.