JP Morgan Worldwide Securities Services today announced that it has been selected by the Government of Canada to provide an expanded set of collateral management services for derivatives.
A derivatives collateral management client since March 2002, the Government of Canada also utilizes the firm's treasury management and derivatives trading services.
Darren Measures, clearance & collateral management sales head for J. P. Morgan, said: "We are very pleased to extend our relationship with the Government of Canada. In a market where credit risk mitigation is the focus of industry attention, J.P. Morgan continues to lead the market in derivatives collateral management outsourcing based on our business knowledge, reputation in derivatives, and collateral management expertise."
Having introduced the industry's first end-to-end collateral management solution for OTC derivatives service in 2005, J.P. Morgan now manages balances of over $70 billion in collateral on behalf of more than 40 clients.
J.P. Morgan's collateral management solutions enable clients to better reduce their counterparty credit risk through effective and efficient collateralization. For OTC derivatives, services include Credit Support Annex (CSA) management, margin demand, agreement and dispute management, automated OTC portfolio reconciliation, collateral eligibility testing, valuation and agreement, collateral settlement instruction and safekeeping, re-hypothecation, substitutions management, cash reinvestment and asset servicing.