Collateral is on the front line for J.P. Morgan
18 June 2013 London
Image: Shutterstock
J.P. Morgan has ramped up its collateral management business—including increased asset tracking—to help clients navigate new industry regulations.
The firm indicated that core to these enhancements is “Collateral Central”, which provides clients with advanced asset tracking, margin management, proprietary optimisation algorithms and analytics to support collateral activities across a wide range of derivatives, securities and cash transactions in real time.
These capabilities aim for collateral management to be moved to the front line of trading and portfolio management decision making.
Collateral Central includes the introduction of an innovative virtual global longbox for J.P. Morgan clients—a single view of their collateral assets and obligations—as well as access to experts with whom they can discuss their collateral situation.
Kelly Mathieson, J.P. Morgan’s global head of collateral management, said: “Clients are faced with increased market complexity and a changing regulatory environment with regard to how they think about their collateral."
"Collateral Central can help them navigate this new landscape. For the first time, clients can manage and optimize their entire collateral portfolio, regardless of counterparty, custodian or clearing bank and across all supported geographies. J.P. Morgan is the only collateral agent able to offer this comprehensive global solution.”
Ricky Maloney, co-head of service delivery for IGNIS Asset Management, said that under the new regulatory framework, collateral has become very valuable to his firm.
“Understanding all the assets we hold, and the margin and other obligations that need to be met, allows us to manage our collateral optimally. Ultimately, that affects our bottom line.”
The service was created and will be managed by the J.P. Morgan’s Agency Clearing, Collateral Management and Execution (ACCE) business within the Corporate & Investment Bank.
The firm indicated that core to these enhancements is “Collateral Central”, which provides clients with advanced asset tracking, margin management, proprietary optimisation algorithms and analytics to support collateral activities across a wide range of derivatives, securities and cash transactions in real time.
These capabilities aim for collateral management to be moved to the front line of trading and portfolio management decision making.
Collateral Central includes the introduction of an innovative virtual global longbox for J.P. Morgan clients—a single view of their collateral assets and obligations—as well as access to experts with whom they can discuss their collateral situation.
Kelly Mathieson, J.P. Morgan’s global head of collateral management, said: “Clients are faced with increased market complexity and a changing regulatory environment with regard to how they think about their collateral."
"Collateral Central can help them navigate this new landscape. For the first time, clients can manage and optimize their entire collateral portfolio, regardless of counterparty, custodian or clearing bank and across all supported geographies. J.P. Morgan is the only collateral agent able to offer this comprehensive global solution.”
Ricky Maloney, co-head of service delivery for IGNIS Asset Management, said that under the new regulatory framework, collateral has become very valuable to his firm.
“Understanding all the assets we hold, and the margin and other obligations that need to be met, allows us to manage our collateral optimally. Ultimately, that affects our bottom line.”
The service was created and will be managed by the J.P. Morgan’s Agency Clearing, Collateral Management and Execution (ACCE) business within the Corporate & Investment Bank.
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