Apr 30, 2014
Having remained at the forefront of the industry since its first trade in 1979, the firm is celebrating 35 years in the securities lending industry this year.
J.P. Morgan’s journey began in 1979, when its securities lending program was launched. Five years later, the program added U.S. government securities lending and introduced a new lending system that provided online access to loan information. By 1993, the firm had a strong range of international securities, and has continued expanding the selection of the countries in which it lends.
Securities lending allows institutional investors such as asset managers, pensions funds, insurance companies, central banks and sovereign wealth funds to generate incremental alpha on their investment assets. Today, the firm has securities lending trading desks located in key financial centers around the world, including Hong Kong, London, New York and Sydney.
Securities lending experienced a marked change last year. This is most readily apparent as banks adjust their balance sheets to optimize Basel III capital ratios and as other market participants begin to identify the collateral they need for OTC derivatives transactions that clear through central counterparties.