J.P.Morgan Worldwide Securities Services has updated its collateral management platform in Japan.
Auto Allocation, a part of J.P. Morgan’s global collateral management platform that was previously not offered in Japan, has been tailored for the market there, to be made available to Japan-domiciled counterparties that wish to use Japanese equities for collateralising repos or loans of securities or cash.
Fumihiko Yonezawa, head of J.P. Morgan Worldwide Securities Services in Japan, said: “By further extending key functionalities from our global collateral management platform to this market, our domestic Japanese clients significantly benefit from greater automation of the entire collateral management process.”
Blair Harrison, head of collateral management in the Asia Pacific region at J.P. Morgan Worldwide Securities Services, said: “These platform enhancements in Japan underscore our ongoing commitment to supporting our clients with innovative solutions, with a view to making the collateral management process easier, simpler and faster.”
“This development showcases one of J.P. Morgan’s core strengths—the ability to bring global efficiency to our clients, tailored to meet local market requirements.”
J.P. Morgan Worldwide Securities Services’s triparty offering for the Chicago Mercantile Exchange’s (CME’s) IEF4 programme recently began supporting corporate bonds as collateral.
In an email interview, Jason Orben, the Americas product executive for collateral management at J.P. Morgan Worldwide Securities Services, explained the decision to support corporate bonds.
“J.P. Morgan has supported the CME’s IEF4 programme for many years, and the addition of corporate bonds as eligible collateral is a natural extension given changing regulations that place a higher emphasis on both central clearing and effective collateral management."
"As a leading collateral agent, supporting this added asset class was really quite straightforward. Our sophisticated global collateral system handles a full range of asset classes—equities, fixed income, corporate, government and municipal bonds, convertibles, ETFs, mortgage/asset-backed securities, gold and more—and allows counterparties to efficiently allocate and optimise their use of collateral.”
He added that while it was possible that over time, the range of acceptable collateral may expand further, the immediate impact of proposed regulations will be an increased call for high-grade, highly liquid collateral.
Image: Shutterstock 