JPMorgan Rolls Out Latest Global Derivatives Collateral Offering

JPMorgan has launched a new solution designed to help financial institutions handle higher volumes, lower position breaks and reduce credit risk. JPMorgan, which currently services more than $70 billion in derivatives collateral, is offering the new automated reconciliation technology globally, representing the latest enhancement to its Derivatives Collateral Management (DCM) solution. This technology, which is designed to work in conjunction with TriOptima's triResolve automated position reconciliation service, increases the efficiency and risk management of trading records.

"The trading volumes of OTC Derivatives are expanding exponentially and our clients need better and better tools to provide security against exposures," said Kelly Mathieson, global head of JPMorgan's Collateral Management business, in a press release. "Accuracy and transparency are crucial to the derivatives marketplace," she said, adding, "Investment professionals can no longer afford the risks associated with manual processing." The amount of collateral in circulation in the marketplace is estimated to be well over $2.1 trillion, according to industry estimates. The amount is expected to increase significantly, as institutional investors continue to use collateral coverage to help reduce the credit risk of dealing with counterparties, Mathieson noted in the release.