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Clearance & Collateral Management

Collateral Management for Securities

Comprehensive services to help manage counterparty and market risk

Collateral is a vital tool for mitigating credit risk in today’s volatile markets, often providing an opportunity to enhance liquidity. J.P. Morgan offers integrated and automated support to securities providers and securities takers, allowing them to optimize collateral use, minimize risk and expense, and maximize potential returns.

J.P. Morgan’s solution mitigates counterparty, credit, settlement and operational risk with comprehensive services that deliver efficient and transparent collateral management services to institutions engaged in Tri-Party Repo or Securities Lending Escrow transactions. Integrated global programs are supported in-region by collateral management experts.

Key benefits include:

  • Effective management of collateral against exposure, using detailed eligibility criteria established by the securities taker, and optimization parameters set by the securities provider. Support for same day recalls while maintaining collateralization levels
  • Sophisticated eligibility testing that optimizes use of assets, including the ability to create, change and track eligibility schedules complete with complex tests and rules
  • Risk management:
    • Reduce settlement risk with proprietary technology and J.P. Morgan’s extensive sub-custodian network
    • Minimize operational risk with efficient holding, marking-to-market, reporting, substitution and redelivery of collateral
  • Asset optimization that helps clients extract maximum value from their portfolio by treating assets as a single pool across all obligations
  • Rehypothecate assets to realize further value. J.P. Morgan’s patent-pending rehypothecation accommodates multiple currencies, asset classes and depositories
  • Accurate collateral valuation for all assets with daily pricing feeds from independent vendors, including the ability to value to predetermined concentration and margin/haircut parameters.
  • Continual investment in technology and infrastructure, including a multiyear, multimillion dollar capital investment program

J.P. Morgan offers additional services to meet the special needs of public funds, taking into account the collateral requirements for public deposits that vary between individual states and municipalities.  Deposit Banks and municipalities alike benefit from J.P. Morgan’s comprehensive solution and centralized, controlled reporting.

For more information, please contact the representative in your region.

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