JP Morgan announces trade-matching functionality for the US Tri-Party Repo market

Date: Monday, April 25, 2011
Author: M Kitchen, HedgeWeek.com

JP Morgan Worldwide Securities Services has launched its Repo Trade Matching Engine. This new functionality will enhance the operating model of the US Tri-Party Repo market, in support of the May 2010 recommendations of the Tri-Party Repo Infrastructure Task Force sponsored by the Federal Reserve Bank of New York’s private sector Payments Risk Committee.

The Repo Trade Matching Engine can take trade instructions via a variety of different messaging types from Tri-Party Repo Cash Lenders.  These Lenders—including asset managers, pensions, and government institutions—will be able to view the matching status of their trades through JP Morgan’s proprietary Repo Access platform.  Tri-Party Repo Dealers will be able to view the matching status of their trades through JP Morgan’s Broker Dealer Automated System (BDAS). 
 
According to Mark Trivedi (pictured), JP Morgan Executive Director for Global Custody and Clearing: “This functionality is a key step towards improving market transparency, a primary area of focus for the Task Force.  By introducing this functionality early, cash lenders in the JP Morgan tri-party program get an advance start on their transition to the new matching process.” 

JP Morgan is introducing these new tools and processes to its cash lender clients, prior to the August 2011 deadline set for the Task Force for three-way trade matching.

Collateral management is a vital risk management tool for institutions seeking to generate additional value from their portfolios while effectively managing their credit risk. JP Morgan’s fixed income clearing and collateral management solution helps clients seamlessly manage their government clearance and tri-party repo financing needs, with automation and technology that integrates these activities to better manage net exposure. 

As a leading provider of clearance and collateral management services to the US fixed income markets, JP Morgan has taken an active leadership role in tri-party repo infrastructure reform and currently serves as Co-Chair of the Operational Arrangements Working Group.  Repo Access and the Repo Trade Matching Engine are the latest in a series of innovative new products and services being introduced as part of JP Morgan’s Global Collateral Engine initiative, a multiyear strategic investment program to deliver fully global, enterprise-wide collateral management.