Articles tagged by JP Morgan
conditions are changing in the FX market, they are not necessarily getting
worse, claimed panelists at Profit &
Loss’ Forex Network New York conference.
Although Kevin Kimmel,
Chief Operating Officer, Citadel Execution Services FX, mentioned that FX
market liquidity ...
The second quarter of 2016 saw mixed performances amongst some of the major banks, against a background of increasing uncertainty and challenging trading conditions in currency markets.
Goldman Sachs posted a 20% year-on-year increase in net revenues in what it calls Fixed ...
Virtu Financial has signed a
three year deal with JP Morgan to provide technology and market access to the
dealer-to-dealer US Treasury market.
“I am very pleased to
announce that we have partnered with JP Morgan on an initiative to ...
JP Morgan has become the latest bank on the
wrong end of an unfair dismissal claim from its currency teams with Patrice
Ktorza, a former FX salesperson at the bank, reportedly winning his claim.
News, citing a copy of ...
The GFMA’s Global FX Division (GFXD) has named Claudia Jury, managing director and co-head, currencies and emerging markets at JP Morgan as its new chair, and Nigel Khakoo, head of G10 FX at Nomura as vice chair. The trade group also announced it added Scotiabank as a new board member, bringing its total membership to 25 FX market participants.
The GFXD says its aim is to promote efficiency, international harmonisation of regulation and high standards of conduct in the global FX market.
JP Morgan has created a markets execution team, which will focus on providing clients with electronic distribution of macro (including futures and options and Neovest) markets products across multi-channels.
The new team will be jointly led by Richard James, who has moved from his role as head of currencies and emerging markets execution services, and Peter Ward, who was previously head of futures and options execution services. Both men will report to David Hudson, JP Morgan's head of markets execution.
Debra Herschmann has joined JP Morgan as head of corporate and investment bank user experience.
She joins from Goldman Sachs, where she established and led the global user experience design practice responsible for delivering commercial and highly usable client-facing, front office, and enterprise products.
Prior to that, Herschmann was at Lehman Brothers where she was responsible for UX delivery of LehmanLive and Point.
At JP Morgan, Herschmann will be responsible for ensuring clients get a consistent experience on the bank’s platforms across asset classes, and as markets change or open up.
A US District Court judge has ratified fines against five major banks following their guilty pleas last year over currency market manipulation charges.
US District Judge Stefan Underhill in Bridgeport Connecticut agreed fines for Citi of $925 billion, Barclays $650 million, JP Morgan $550 million, Royal Bank of Scotland $395 million and UBS $203 million after the banks pleaded guilty to FX market abuse in mid-2015. The fines were recommended by the US government and accepted by Judge Underhill last week.
Profit & Loss understands that BestX, the start-up technology company that provides independent trading analytics, has signed JP Morgan as its first major FX sell-side client.
The deal marks a significant step forward in the industry as it represents the first time a major dealing bank has integrated a truly third party’s service to offer post-trade verification of execution quality. It will allow the bank’s own clients to independently define, achieve and demonstrate best execution through a post-trade transaction cost analysis (TCA) when trading electronically with the bank.
Andres Choussy has left his position as head of derivatives clearing for the Americas at JP Morgan.
Profit & Loss understands that he will be succeeded in the role by Paul Davidson, who will be now be responsible for listed futures and options clearing, OTC credit and rates clearing and credit, FX and rates intermediation.
Davidson will be based in New York and report into Nick Rustad, global head of clearing at JP Morgan.
Davison has been with JP Morgan since 1999, initially spending six years on the floor of the CME in Chicago working on the equity execution desk, before joining the execution team in New York.
A new survey released by JP Morgan, which almost 200 institutional FX traders took part in at the end of last year, shows that although just 12% of respondents currently use algorithms for trading, 38% plan to increase algo usage in 2017.
This, in and of itself is not necessarily a surprising statistic. Numerous market commentators have been predicting for a few years now that more institutional FX trades will employ algorithms for a variety of reasons. These include navigating an increasingly fragmented liquidity landscape, helping firms to minimise their market impact, providing a more auditable trading record, and potentially enabling buy side firms to take on more risk themselves as some banks drift towards a more agency-focused business model.
P&L Report Card: I f there is one client segment that is in the eye of the storm when it comes to execution quality and market impact, it is real money. Execution desks are well aware of the challenges that currently exist in the FX market, however the same cannot be said for their oversight function – too many of which still seem to believe that top of book is good for 100 million. So the real money sector remains at the centre of the upheaval around best execution.
Putting aside this segment’s use of the WMR Benchmark Fix, this client set is possibly the most challenged of all segments due to its need to shift larger tickets into the market.
P&L Report Card: Yes, we are going to start with our annual reminder that servicing one’s peers is always the hardest task, mainly because their background is similar; they could be potential competitors, and as far as service levels go, they are very demanding! The past two years has seen more banks come up the curve in terms of technical knowhow and product development, so servicing this critical segment becomes even more challenging – for both parties.
Whilst the global bank has to capture some value from the flow, the regional players’ need to provide best execution means they are a lot more selective when it comes to where they trade.
P&L Report Card: One of the more pleasing developments of the past few years has been the arrival and general acceptance of mobile trading. It is now accepted by clients (and importantly their compliance function) to the extent that a good mobile app can be a differentiator when selecting key relationships. We accept that mobile remains something of a niche market because there just aren't that many customers who want to execute out of hours, but those that do typically tend to be “valued” clients and as such, are important to the bank.That more people are using mobile devices for trading as well as information is thanks in no small way to the banks doing a great job of enhancing the security and compliance procedures around the process.
P&L Report Card: It seems hard to credit that just 18 months ago some very senior people in the banking industry were promoting the agency-only concept so strongly to Profit & Loss that we even started to think there might be something in it. As it turns out, there wasn’t, because the sheer number of liquidity events – let alone their severity – in FX markets has highlighted the value of a principal-based business.
It is quite amazing the impact that the odd price gap and (occasionally mini) flash move can have on thinking and we believe that the resurgence in interest in the single dealer platform in FX has, at its genesis, client concerns over liquidity.
For the second year in succession, UBS and JP Morgan have won the top two prizes in Profit & Loss’s Digital FX Awards.
For the fourth year in succession, UBS’s Neo won Best Platform, it was also named as Best Rates Platform and Best Structured Products Platform. Of note, UBS also won an unprecedented 10th Post Trade Award in a row.
Meanwhile JP Morgan reinforced its success from 2016 when it first won Best FX Platform by carrying off the award again in 2017. The bank also added three others to notch four trophies for the first time in the Digital FX Awards’ 15-year history.
Profit & Loss readers cast large numbers of votes this year for their preferred market makers and service providers.
Last year was the first that we changed the category description from banks to market makers to account for the larger proportion of non-banks that now comprise an important part of market making, and this is again reflected in the results.
The industry’s changing dynamics are starting to show. Voting, which spanned across time zones, was close in many categories, so we have listed the top three for each category to acknowledge the runners up.
Market sources tell Profit & Loss that James Taylor, executive director at JP Morgan, has left the bank and is heading to BNY Mellon.
Taylor was most recently heading JPM’s macro fixed income market structure team, having shifted from his role as head of international rates execution services at the bank. Taylor joined JP Morgan in 2009 as head of e-FICC sales for Europe, having moved from a similar role at Deutsche Bank. Prior to Deutsche, Taylor was on the e-FX sales team at Barclays.
Sources tell Profit & Loss that Ben Weinberg has swapped Goldman Sachs for JP Morgan, joining the bank in a senior e-FX sales role.
The hope that peer pressure will help drive adoption of the Global Code of Conduct's principles is fine, but what the industry also needs is real action to curb some practices that sit uncomfortably with some. Last look is one of them and while last year we had a spate of disclosures that highlighted how firms were hardening their stance on last look, this week has seen one bank - if I am reading this right - take a step further.
A UK appeals court judge has decided that former JP Morgan FX salesperson Patrice Ktorza’s case must be reheard by an employment tribunal.
In a judgement, Judge David Richardson accepted the bank’s claim that the original judge who head the case had adopted “a legally incorrect” approach to the law and “disregarded or misunderstood” important aspects of JP Morgan’s case.
Ktorza won his claim for unfair dismissal in August 2016, however Profit & Loss noted at the time that the case was “tricky” because it involved the subject of partial fills of client orders.
Deutsche Bank and JP Morgan have filed court documents seeking to settle a class action claim brought against them and other market participants over alleged Yen interest rate benchmark manipulation.
The documents were filed Friday in the US District Court of Southern New York and while the two banks do not admit liability or wrongdoing, Deutsche has agreed to pay $77 million and JP Morgan $71 million. These settlements are more than double those agreed by HSBC and Citi last year.
LCH has introduced a new type of client account within its SwapClear service.
The account allows buy side clients to deliver collateral directly to the clearing house and to retain beneficial title to it. Segregation at an International Central Securities Depository (ICSD) ensures that such securities collateral remains client-specific.
This aims to increase operational efficiency and also eliminates the transit risk arising where a client delivers collateral to the clearing house via its clearing member.
JP Morgan is the first clearing member, and Aviva Investors is the first buy side client, to use this new account type. BNP Paribas and HSBC have also confirmed their readiness to support the new account structure.
Despite a growing desire from some mainstream regulated financial services firms to trade bitcoin and other cryptocurrencies that are based off a public blockchain, there doesn’t seem to be many solutions on the horizon for the Know Your Customer (KYC) challenges this presents.
At the Sibos conference being held in Toronto this week, Elisabeth Rochman, financial services chief technologist at Hewlett Packard Enterprise, noted that a lot of the “BigTech” firms – such as Google and Facebook – are behind the curve compared to banks when it comes to looking at use cases for blockchain.
A report in the Financial Times says that eight banks are preparing to settle with the European Commission (EC) over allegations they formed a cartel to rig foreign exchange markets. The FT names six of the banks as Barclays, Citi, HSBC, JP Morgan, RBS and UBS and says two others are also preparing to settle. Any settlement may also provide extra impetus for the various legal firms seeking to replicate their success in winning civil settlements from banks in the US, in the European Union.