J.P. Morgan waves goodbye to triparty repo intraday credit exposure
19 November 2012 New York
Image: Shutterstock
More than a third of J.P. Morgan’s intraday credit exposure that it experiences during the unwinding of triparty repos has been eliminated as the firm implements market reforms.
Reform of the US triparty repo market is well underway, with financial institutions, such as J.P. Morgan, working towards completion of the Phase Two Target End State as agreed with Federal Reserve Bank of New York, at the end of 2013.
J.P. Morgan is also the first triparty agent to offer new collateral optimisation functionality, which gives dealers new options to adjust their collateral allocations without requiring credit from clearing banks, in the US fixed income repo market
New features for clients include the ability to reoptimise collateral in term repos during the settlement window, additional intraday security-for-security substitution tools and an ability to adjust collateral mixes of new repos after transactions have settled, up to 6.30pm.
Mark Trivedi, managing director at J.P. Morgan, said: “Once again, we have delivered on our promise to provide clients with innovative tools that achieve market reforms and reduce their operational burden. Our new infrastructure that supports reoptimisation forms the foundation for the rolling settlement and simultaneous exchange modules we will introduce next year.”
Reform of the US triparty repo market is well underway, with financial institutions, such as J.P. Morgan, working towards completion of the Phase Two Target End State as agreed with Federal Reserve Bank of New York, at the end of 2013.
J.P. Morgan is also the first triparty agent to offer new collateral optimisation functionality, which gives dealers new options to adjust their collateral allocations without requiring credit from clearing banks, in the US fixed income repo market
New features for clients include the ability to reoptimise collateral in term repos during the settlement window, additional intraday security-for-security substitution tools and an ability to adjust collateral mixes of new repos after transactions have settled, up to 6.30pm.
Mark Trivedi, managing director at J.P. Morgan, said: “Once again, we have delivered on our promise to provide clients with innovative tools that achieve market reforms and reduce their operational burden. Our new infrastructure that supports reoptimisation forms the foundation for the rolling settlement and simultaneous exchange modules we will introduce next year.”
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