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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.


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JP Morgan Chase leads the way

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   

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Comments: (2)

Kiri Self
Kiri Self - TRG Post Trade Services - London 17 February, 2011, 09:06Be the first to give this comment the thumbs up 0 likes

I totally agree Gary, and I would also like to see some action in the post trade space, with regards to driving out legacy systems used in settlements and corporate actions departments. It is incredible that so many manual practices still exist in a world where technology such as the iPad exists!

Do you think we will see more of this type of change in other market players?

A Finextra member
A Finextra member 17 February, 2011, 09:22Be the first to give this comment the thumbs up 0 likes

Thanks Kiri

Yes because the risks of maintaining legacy systems is increasing year on year and market changes and new regulations put more and more pressure on them

APPS are the future and i was so pleased to see some vendors at SIBOS presenting their products. More in this space i think!

Your right the Post Trade space is heaped up with legacy systems and old market infrastructures and these need changing. I am encouraged by Corporate Actions systems on the market that my company puts under the microscope each year in our accreditation process.

Still getting financial services firms to understand the technology and the business needs and then invest is a very big hurdle