An article relating to this blog post on Finextra:
JPMorgan to cut costs and jobs by ditching trading platforms
JPMorgan Chase has ditched half of its 10 trading platforms in the last two years, and plans to get rid of another three by 2014 in a bid to save $300 million a year.
The news that JP Morgan is undetaking a massive downsize of its many trading systems is long over due and hopefully sets a trend for the market. Technology in this space has today run miles ahead of any system with any eighties or nineties legacy and i am
certain that JPM Chase is going to gain huge financial and operational benefits. There will be a knock on benefit to the market as when a main market player undergoes this level of change the efficiencies will be felt by its trading counterparties and clients.
Legacy systems and old structures in IT has long worried me and i am amazed that more investment has not been made by more Banks in rationalising their technology. Its dangerous to stand still and in this market could be business terminal. Hopefully leaner
and more efficiency systems will transalate to increased profitability and more business growth
As a JP Chase shareholder i can applaud this action and look forward to increased dividends as a result