JPMorgan Launches Tri-Party Repo Service
JPMorgan’s Clearance group has launched its US Equity Tri-Party Repo service as part of its collateral management product suite. Investors seeking more attractive returns and reduced risk from counterparty insolvencies on short-term cash investments increasingly use sale and repurchase transactions, known as “repos”. In a repo agreement, a dealer sells securities to a customer while simultaneously agreeing to repurchase them at a future date and pre-determined price. JPMorgan serves as the intermediary agent to both the cash provider (the buyer) and the cash borrower (the seller). JPMorgan’s US Equity Tri-Party Repo service will be enhanced to incorporate the best elements of the European and US platform’s functionalities, the bank said. “We are excited to offer JPMorgan’s Equity Tri-Party Repo service to provide an integrated, market-leading collateral management service to buyers and sellers, and our group is specifically dedicated to servicing these confidential lender/borrower relationships,” said Ed Corral, senior vice president of JPMorgan’s US Clearance group.