J.P. Morgan Announces Successful Transition to Three-Way Trade Confirmation for Tri-Party Repo Clients

New York, October 11, 2011 – J.P. Morgan today announced that its active tri-party repo clients have successfully completed the transition to three-way trade confirmation as mandated by the Tri-Party Repo Market Infrastructure Reform Task Force. By value, 99% of all tri-party repos booked daily through J.P. Morgan are now confirmed by both counterparties. According to Kelly Mathieson, Worldwide Securities Services Global Custody and Clearance Executive at J.P. Morgan, “This milestone reflects the concerted efforts of our whole community.  J.P. Morgan has worked daily with dealers and cash investors in its tri-party repo program to familiarize them with our new tools and procedures and ensure their smooth transition to three-way trade matching in order to meet the Task Force deadline.”

Three-way trade confirmation increases market transparency for cash investors, a key Task Force objective. J.P. Morgan has developed innovative tools to facilitate trade confirmation, including Repo Access^SM and a Trade Matching Engine that gives cash investors greater control by actively affirming trade instructions.  J.P. Morgan also accepts trade instructions via a variety of different messaging types, including SWIFT, or via other third-party vendor services to accommodate client preferences. 

Mathieson notes that J.P. Morgan has been an integral partner in defining and implementing the new tri-party repo market model put forth by the Task Force, saying, “We continue to devote a significant amount of time, talent and investment to developing the tools and resources to help our clients adjust to market changes.”  Acknowledging that Task Force reforms will continue into 2012, Mathieson comments, “In our role as co-chair of the Operational Arrangements Working Group, we continue to be deeply involved as an advocate for our clients and market reforms and are working closely with our clients to communicate and prepare for upcoming milestones.”  

Collateral management is a vital risk management tool for institutions seeking to generate additional value from their portfolios while effectively managing their credit risk. J.P. 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. 

About J.P. Morgan Worldwide Securities Services
J.P. Morgan Worldwide Securities Services is a premier securities servicing provider that helps institutional investors, alternative asset managers, broker dealers and equity issuers optimize efficiency, mitigate risk and enhance revenue. Worldwide Securities Services leverages the firm's unparalleled scale, leading technology and deep industry expertise to service investments around the world. It has $16.9 trillion in assets under custody and $7.5 trillion in assets under administration.  For more information, go to www.jpmorgan.com/visit/wss.

About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.2 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.