Treasury & Securities Services
J.P. Morgan helps clients manage currency and market risk through our combined capabilities as a leading trading house, premiere investment bank and global custodian. Our size, scale and expertise translate into fast, competitive and consistent pricing for all execution services, including:
- Exchange
J.P. Morgan offers transaction or purchase sale of foreign currency conducted by importers and exporters of goods and services.
J.P. Morgan operates with commercial foreign exchange of import and export, with settlement within two business days.
- FEC/ACE
J.P. Morgan provides lines of credit so that companies can stand out in the international market.
In the FEC operation Forward Exchange Contracts, J.P. Morgan advances the amount in national currency equivalent to the value of exports in foreign currency, thus enabling the finance of goods production at a lower cost than any other resource on the local market.
Through ACE (Advance against Draft Presentation), J.P. Morgan advances to exporters the amount agreed between the parties in the exchange contract after the shipment of goods. Such funding increases the competitiveness of a company as it enables better payment terms to its customers.
The terms and conditions of funding should be analyzed according to each company’s needs. J.P. Morgan studies each individual case, always focusing on the specific company's needs.
- FINIMP
This is a financing option for import. J.P. Morgan pays the exporter in cash in foreign currency and the importing company pays the bank with simplified terms.
J.P. Morgan works with FINIMP Direct mode, where financing is granted directly by J.P. Morgan Offshore Brazil to a Brazilian importer. A company can quote different banks to obtain the best exchange closing rate on the principal and interest payment due date.
- Importer closes a purchase order (import) of goods.
- Exporter ships goods.
- Importer delivers the import documents and the FINIMP contract signed between the importer and J.P. Morgan Brazil.
- J.P. Morgan Brazil forwards documentation to J.P. Morgan offshore.
- J.P. Morgan offshore pays the exporter.
- Upon FINIMP contract due date, the importer pays J.P. Morgan offshore at closing exchange rate (this transaction can be made through J.P. Morgan Brazil or another bank).
- Deposit
Deposit is a guarantee that a company will fulfill its legal obligation towards a third party.
J.P. Morgan issues the Legal Deposit in local currency, and the business can count on the credibility of one of the largest banks in the world.
Following are different types of deposit issued by J.P. Morgan:
- Advance Payment to Suppliers
- Contractual Surety Bond
- Payment of Rent
- Participation in Public Bids
- BM & F Bovespa Operations
Companies can count on the advantage of the J.P. Morgan Deposit Covenant, which provides greater agility in the analysis of documents and issuance of the Letter of Guarantee.
Service subject to credit approval and legal documentation required by Brazilian law.