J.P. Morgan today announced a series of new products, services and client mandates designed to capitalize on the firm's global footprint, understanding of changing regulatory environments and innovative approach to issues affecting financial institutions.
These announcements are being released in conjunction with Sibos 2012, held in Osaka, Japan from October 29 to November 2, 2012.
"Our commitment to our clients, combined with the array of services we can deliver to financial institutions regardless of region, has made J.P. Morgan a natural choice for their treasury needs," said Don McCree, head of Treasury Services for J.P. Morgan. "We are consistently developing new solutions that our clients can use to streamline their business and respond to a changing regulatory and technological landscape. Our team has the deep understanding of global markets to help financial institutions navigate this environment."
"The evolving global regulatory situation presents a host of challenges for financial institutions that must comply with changing collateral and custody requirements," said Dinkar Jetley, J.P. Morgan's head of Worldwide Securities Services. "As these requirements affect more and more financial institutions in all regions, a firm with a global footprint is the best partner in helping to understand and comply with the rules. J.P. Morgan is a global bank recognized for its expertise, and we will continue to provide counsel and offer the products and services that our clients, and financial institutions generally require."
J.P. Morgan remains at the forefront of developing solutions for financial institutions that require best-in-class products for their cash, liquidity, trade, clearing and custodial needs. For instance, the firm's Treasury Services business has emphasized technological innovation through upgrades and expansion of its J.P. Morgan ACCESS® and MorganDirect Commercial platforms. Worldwide Securities Services has developed products that help institutions manage their market risk through derivatives collateral management and tri-party collateral management—two areas that are seeing increased regulatory and market focus.
The increasingly cross-border nature of the industry requires products and suires products and services that help financial institutions efficiently and cleanly handle complex cash management needs. J.P. Morgan is addressing this evolution through enhancements to its robust product suite, including U.S. Dollar clearing, cross-currency payments, unitized time deposits and direct custody and clearing. Additional details on each of these are available below.
New Products and Services
Online Client Access
J.P. Morgan Treasury Services Launches Next Generation J.P. Morgan ACCESS®
J.P. Morgan Treasury Services launched the next generation of J.P. Morgan ACCESS®, an online banking portal for corporates, financial institutions and commercial banking clients. J.P. Morgan ACCESS provides treasury and investment professionals worldwide with a secure, single point of access to effectively manage their treasury operations online. The next generation includes integrated payment and reporting capabilities and unique attributes for user administration, allowing clients a more efficient use of time while simultaneously improving their control environment. It also features an entirely new online user community, providing a single location for user learning and interaction.
Enhanced U.S. Dollar Clearing
J.P. Morgan Enhances U.S. Dollar Clearing - Asia Direct Solution
J.P. Morgan's Treasury Services announced a range of enhancements to its U.S. Dollar Clearing - Asia Direct solution, bringing increased flexibility and operating efficiencies to clients. Continuous enhancements to the service allows clients to leverage J.P. Morgan's state-of-the-art technology, strong client relationships and access to multiple clearing systems to expedite payments to beneficiary banks in China, Hong Kong, Japan, Taiwan and the Philippines from a single U.S. Dollar account in the U.S.
J.P. Morgan Continues FX Payment Capability Rollout for Financial Institutions
J.P. Morgan announced that MorganDirect Commercial (MDC), a web-based application for FX payments including execution, confirmation and settlement, will be available to financial institutions around the globe in 2013. The expansion will add new markets to those currently using the application in the Americas and EMEA. Beginning in 2013, the bank will be expanding its availability to three new branches in the Asia-Pacific region—Hong Kong, Singapore and Mumbai—in addition to its current location in Sydney, Australia.
J.P. Morgan Launches Cross-Currency Automated Clearing House Solution in Asia Pacific
J.P. Morgan Treasury Services launched its Cross-Currency Automated Clearing House (Cross-Currency ACH) solution across Asia Pacific, with Thailand's KASIKORNBANK one of the first clients to take up the service. Available in 14 markets across Asia Pacific, J.P. Morgan's Cross-Currency ACH platform unites the different national clearing systems into a single regional payment network for high-volume, non-urgent payments. This new capability delivers a convenient and cost effective cross-currency payments service to the firm's financial institution, non-bank financial institution and corporate clients.
J.P. Morgan Expands Liquidity Management Capabilities with Launch of Unitized Time Deposits in Asia Pacific
J.P. Morgan Treasury Services is adding to its suite of innovative liquidity management solutions available to clients with the launch of its Unitized Time Deposit investment capabilities in Asia Pacific. Designed and developed to help corporates address challenges around forecasting past short-term maturities (i.e. past 7 days), the fully-automated Unitized Time Deposit investment solution allows funds to be layered in tranches with what is effectively a rolling daily maturity while providing a more attractive yield when compared with regular short-term investments.
Dodd-Frank 1073 Regulation
J.P. Morgan to Provide Clients with Cross-Border Payment Solution Addressing Dodd-Frank 1073
J.P. Morgan Treasury Services is creating a consumer cross-border payment solution to help impacted clients prepare for compliance with the Dodd-Frank Rule 1073. The solution will be available in the first quarter of 2013, to coincide with the Rule's implementation. Rule 1073 applies to U.S. consumer-initiated, cross-border electronic transfers and payments (remittance transfers). Starting February 7, 2013, any U.S.-based consumer sending cross-border wires must receive pre-payment disclosures and post-payment receipts from their financial institution. Disclosures must encompass various pieces of information, including any related fees, FX conversion rates, and taxes related to the wire payment.
Custody and Clearing
J.P. Morgan Launches Direct Custody & Clearing in Hong Kong, Continuing Global Expansion
J.P. Morgan Worldwide Securities Services has continued the global rollout of its Direct Custody & Clearing (DCC) platform, going live in Hong Kong and appointing Michael Drumgoole as Asia Pacific head of the business. The firm's global clients will benefit from J.P. Morgan's extensive local market expertise in Hong Kong, best-in-class operational and risk management practices and access to all local market infrastructures, including exchanges, clearing houses and depositaries. Hong Kong is the latest market to join the firm's international direct custody and clearing network, which currently includes Australia, Brazil, India, Ireland, New Zealand, Russia, Taiwan, the United Kingdom and the United States.
J.P. Morgan Introduces Daily Portfolio Reconciliation for Derivatives Collateral Management
J.P. Morgan's Worldwide Securities Services (WSS) business has introduced daily portfolio reconciliation for its derivatives collateral management clients, through its ongoing partnership with TriOptima, provider of the market's leading derivatives portfolio reconciliation service, triResolve. J.P. Morgan utilizes secure FTP technology to exchange trade files, becoming the first collateral agent to offer this additional level of security to its clients.
J.P. Morgan Delivers Cash Management Solutions to Four Taiwanese Banks in China
J.P. Morgan Treasury Services will provide U.S. Dollar clearing and liquidity balance management services to the China operations of Bank of Taiwan, Chinatrust Commercial Bank Ltd., E.Sun Commercial Bank Limited and Mega International Commercial Bank Co., Ltd. Key factors in awarding the four mandates include J.P. Morgan's leading position as the world's No.1 U.S. Dollar clearing bank, extensive product suite and flexibility around solutions, high book transfer ratios, leading client service capabilities and local market expertise.
DBS Bank Selects J.P. Morgan for Regional Cash Management Services
J.P. Morgan has been selected by Singapore's DBS Bank to provide a full range of cash management services across several key growth markets in Asia. This partnership significantly expands DBS' transaction banking footprint in Asia by utilizing J.P. Morgan's leading cash management platform across 6 markets - Australia, Japan, Korea, Malaysia, the Philippines and Thailand. This includes flexible solutions for payments, receipts, foreign exchange and money market settlement, liquidity management and real-time reporting services tailored for DBS corporate clients.
J.P. Morgan Treasury Services and Worldwide Securities Services are businesses that reside within J.P. Morgan's Corporate & Investment Bank (CIB).