JP Morgan, in partnership with EDS, has launched an Internet-based derivative management and settlement company, Arcordia, on 31 March. Arcordia will provide transaction management and settlement services via the Internet for derivative products to financial institutions and corporations world-wide.
The service offers clients 24-hour access to an Internet-based infrastructure for management and settlement of derivatives trades, as well as the option of fully or partially outsourced management and settlement services. It also provides an efficient and secure environment for handling high volume and complex transactions, according to officials.
“Arcordia will provide clients with substantial savings on future transaction, management and investment costs and flexibility to respond to changes in the marketplace, peaks in volumes and the arrival of new products,” an official says.
“Arcordia provides a unique solution to eliminate capacity constraints, easily integrate new products, improve client servicing and reduce ongoing investments in a secure and controlled environment,” says Rafic Dahan has been named chief executive of Arcordia.
EDS may hold as much as a 9% stake in Arcordia, given the terms currently under discussion. JP Morgan will retain a minority stake as other partners join. Arcordia is a US based entity that will leverage technology and marketing expertise from its UK subsidiary in London. The group will initially employ 300 people, many of whom will be transferred from JP Morgan’s own derivatives support staff.
In addition to Dahan, Diane Brunsden has been named as the IT solutions director and David Marlborough as the marketing and business services director. All three were formally senior executives at JP Morgan.