J.P. Morgan Introduces Auto Allocation Capabilities to Collateral Management Platform in Japan

Tokyo, June 27, 2012 – J.P. Morgan Worldwide Securities Services has enhanced its collateral management platform in Japan, introducing core automation capabilities that will provide clients with significant efficiency gains while also meeting Japan’s unique regulatory and legal requirements related to the management and protection of collateral under Japanese law.

Auto Allocation, a key part of J.P. Morgan’s global collateral management platform, is one of the first such automated systems available in Japan. Previously not offered in Japan, J.P. Morgan has tailored its Auto Allocation solution for the Japanese market.

Auto Allocation is available to Japan-domiciled counterparties who wish to use Japanese equities for collateralizing repos or loans of securities or cash. It allows for the simultaneous allocation of Japanese securities to multiple recipients and enables a more seamless substitution and recall process for securities. Furthermore, the platform delivers collateral portfolio optimization whilst affording Japanese lenders with protection of their collateral - an enforceable Japanese law security interest (via a pledge or security interest by way of title transfer) perfected through registration in the Japanese central securities depository, JASDEC.

Key enhancements include:

• Automatic allocation of collateral to multiple counterparties, reducing both manual intervention and operating costs associated with managing securities collateral
• Fast and easy access to domestically-held securities and funds to enhance performance of the collateral held 
• Legal clarity as to the collateral recipient’s rights to the collateral: security interest remains protected under Japanese law throughout

Fumihiko Yonezawa, Head of Worldwide Securities Services, Japan, J.P. Morgan, said: “This is an important development for our existing collateral management offering in Japan. By further extending key functionalities from our global collateral management platform to this market, our domestic Japanese clients significantly benefit from greater automation of the entire collateral management process.”

Blair Harrison, Head of Collateral Management, Asia Pacific, J.P. Morgan Worldwide Securities Services, said: “These platform enhancements in Japan underscore our ongoing commitment to supporting our clients with innovative solutions, with a view to making the collateral management process easier, simpler and faster. This development showcases one of J.P. Morgan’s core strengths —the ability to bring global efficiency to our clients, tailored to meet local market requirements.” 

J.P. Morgan has been a leading global provider of end-to-end collateral management solutions since the firm pioneered international tri-party securities lending in 1992. Today, the firm offers a fully-integrated worldwide securities clearance and collateral management system, managing over USD 600 billion of collateral for many of the world’s leading broker dealers and financial institutions. For more information on J.P. Morgan’s collateral management services, please visit www.jpmorgan.com/wss.

About J.P. Morgan Worldwide Securities Services
J.P. Morgan Worldwide Securities Services (WSS) 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. A division of JPMorgan Chase Bank, N.A., WSS leverages the firm’s global scale, leading technology and deep industry expertise to service investments around the world. It has $17.9 trillion in assets under custody and $7.3 trillion in funds under administration. For more information, go to www.jpmorgan.com/wss.  

About J.P. Morgan
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.3 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.