J.P. Morgan Appointed Sole Provider of Clearance, Settlement and Custody Services by Gretai Securities Market in Taiwan

Hong Kong, November 16, 2009 – J.P. Morgan Worldwide Securities Services announced today that it has been appointed sole provider of clearance, settlement and custody services by GreTai Securities Market (‘GTSM’) for foreign government bonds.

J.P. Morgan’s end-to-end clearance, settlement and custody solution for GTSM – Taiwan's over-the-counter (‘OTC’) Exchange, will be initially used to enhance the trading of U.S. Treasuries in Taiwan.

Banks, broker/dealers and bills companies will be able to trade U.S. Treasuries through GTSM, using ICAP’s electronic fixed income trading platform, BrokerTec. Once the trades are completed, they will be sent to J.P. Morgan’s GlobeClear to be cleared and settled at the Federal Reserve and held under custody.

Financial institutions in Taiwan will benefit from having access to U.S. Treasuries bid and offer rates on a real-time basis through access to ICAP’s BrokerTec on GTSM’s platform, from trading U.S. Treasuries in the local timezone, and being able to settle their trades efficiently given J.P. Morgan’s status as one of the two settlement banks at the Federal Reserve. This is a significant improvement from the historical way of buying and selling U.S. Treasuries through a third party securities firm based in the U.S. GTSM aims to extend the use of this solution to cover G7 Government Bonds in the future.

J.P. Morgan Treasury Services will also provide U.S. dollar accounts to a number of institutional investors trading U.S. Treasuries in Taiwan. By leveraging J.P. Morgan’s global payment network and leading position in U.S. dollar clearing, institutional investors will benefit from reduced correspondence bank charges, optimised liquidity, faster payments as well as high standards of service delivery.

“We are pleased to have appointed J.P. Morgan as our sole clearance, settlement and custody bank for foreign government bonds. We have been working very closely with them to develop this solution and have been impressed by their commitment, their local servicing team, and their ability to tailor their solutions to meet our needs. We also value their financial strength and unparalleled reputation,” said Gordon Shuh Chen, Chairman of GreTai Securities Market.

“GTSM’s initiative is the first of its kind in the Asia Pacific region. Being chosen by GTSM to support this solution further demonstrates our leadership in servicing trading exchanges and our commitment to the Taiwanese market. GTSM will also benefit from the efficiencies delivered by using a single provider to manage the complexities of clearing, settlement and custody,” added Shaun Parkes, head of Worldwide Securities Services, Asia ex-Japan at J.P. Morgan.

J.P. Morgan’s GlobeClear is a unique platform that enables clearance for over 30 exchanges and more than 65 OTC markets –including Federal Reserve and DTC clearance, through a single access point. GlobeClear is the only platform with on- and off-exchange securities clearance and integrated collateral management capabilities for securities finance and derivatives trading. For more information about GlobeClear, please visit www.jpmorgan.com/globeclear.

J.P. Morgan also holds market leading positions in the provision of custody services in Asia Pacific, including in Taiwan and Australia –the largest market in the region. J.P. Morgan Worldwide Securities Services leverages the services and products of its Treasury Services division, as well as its Investment Bank, Asset Management and Private Bank lines of business to provide its customers with integrated banking solutions.

About GreTai Securities Market
GreTai Securities Market (GTSM) is a government-designated organization with a mission to promote and supervise Taiwan's emerging stocks and over-the-counter fixed income market. Established in November 1994, GTSM is dedicated to service excellence and equipped with an advanced trading system. GTSM provides a dynamic capital market offering stocks, bonds and derivates trading. After self-innovated Electronic Bond Trading System (EBTS) for Taiwan government bonds launched in 2001, Taiwan's government bond trading size has increased tremendously. By 2008, total bond trading value reached US$4.09 trillion. Currently, EBTS offers outright, repo, and bond option trading to dealers.

About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $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. In Asia Pacific, J.P. Morgan operates through 26 offices in 15 countries and has developed its wholesale banking franchise during a history of almost 160 years in the region. More information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.