J.P. Morgan today announced it has successfully on-boarded its 40th Derivatives Collateral Management (DCM) client.
J.P. Morgan DCM clients are resident in markets including Canada, Denmark, Germany, Ireland, Luxembourg, the Netherlands, Norway, Switzerland, the United Kingdom and the United States. This client base includes asset managers, insurance companies, pension trusts, hedge funds, large supranational institutions, corporates, regional banks, governments and government agencies.
J.P. Morgan launched its DCM service in 2005, inaugurating the industry’s first end-to-end collateral management solution for OTC derivatives. DCM now manages balances of over $70 billion in collateral on behalf of clients.
Since its introduction, J.P. Morgan has expanded the offering to include market-leading portfolio matching and reconciliation services, as well as enhanced cash reinvestment options to facilitate optimal use of collateral. Additionally, in 2009, J.P. Morgan introduced a global tri-party product for the settlement and custody of derivatives collateral assets.
Kelly Mathieson, global head of clearance and collateral management at J.P. Morgan Worldwide Securities Services, said, “Effectively managing collateral is a critical risk management strategy and, increasingly, organizations are choosing an agent to handle the operational complexity of these transactions. We are proud that so many institutions have chosen J.P. Morgan as their trusted partner.”
According to Colm Gaughran, global product manager for DCM, “As a market leader, we are well-positioned to accommodate the changing market requirements recommended by the International Swaps and Derivatives Association (ISDA).”
J.P. Morgan DCM enables clients to better reduce their counterparty credit risk through effective and efficient collateralization. Services include Credit Support Annex (CSA) management, margin demand, agreement and dispute management, automated OTC reconciliation, collateral eligibility testing, valuation and agreement, collateral settlement instruction and safekeeping, re-hypothecation, substitutions management, cash reinvestment and asset servicing.
For more information about J.P. Morgan’s collateral management solutions, please visit www.jpmorgan.com/ccm.