JPMorgan CommanD, the firm's derivatives collateral management solution, today announced it has added its 20th client.
JPMorgan CommanD clients are in markets including Canada, Denmark, France, Ireland, Luxembourg, the UK and the US.
More than half of CommanD's existing client base includes large multi-national financial institutions, broker-dealers and asset managers including the World Bank, Resolution Asset Management, Standard Life Investments and JPMorgan Asset Management (UK), among others. Other existing clients include governments and pension funds, including the government of Canada and PFA Pension fund.
The launch of JPMorgan CommanD was announced in 2005, making it the industry's first full-service collateral management solution for OTC derivatives.
JPMorgan has expanded the service over the past twelve months to include enhanced cash reinvestment options, re-hypothecation, and the provision of credit to further smooth the flow of collateral. The service is now available to banks, asset managers, pension fund managers, governments, government sponsored agencies, hedge funds and corporates.
JPMorgan CommanD enables clients to better mitigate credit exposure and increase derivatives trading cost effectiveness. JPMorgan CommanD moves beyond the traditional custodial elements of a collateral management solution by covering many of the post-trade functions along the value chain, including OTC derivatives valuation, Credit Support Annex (CSA) management, re-hypothecation, settlement and custody.
Kelly Mathieson, business executive for collateral management at JPMorgan Worldwide Securities Services, said, "JPMorgan CommanD has grown exponentially in the last two years as an increasing number of organizations see the value of a third-party collateral management solution. This solution supports over 30 derivative instruments and we now support balances of over $29 billion in derivatives collateral."
According to the ISDA Margin Survey, about $1.33 trillion of collateral was pledged in OTC derivatives transactions at the beginning of 2006. The same survey found that 59 per cent of OTC derivative transactions reported by respondents and 63 per cent of mark-to-market credit exposure were covered by CSAs to the ISDA Master Agreement. The number of CSAs rose 54 per cent to 109,733 from 2005 - 2006.