Things you must know about JP Morgan's newly-launched Collateral Central

Find out what the 'virtual global longbox' does.

J.P. Morgan introduced significant enhancements to its industry-leading collateral management business to help clients navigate new industry regulations.

Core to these enhancements is Collateral Central, a dynamic, real time service that provides clients with advanced asset tracking, margin management, proprietary optimization algorithms and analytics to support collateral activities across a wide range of derivatives, securities and cash transactions in real time.

The roll out of these capabilities allows the management of collateral to move from an operational consideration to the front line of trading and portfolio management decision making. 

Collateral Central includes the introduction of an innovative virtual global longbox for J.P. Morgan clients—a single, comprehensive view of their collateral assets and obligations—as well as access to dedicated experts with whom they can discuss their collateral situation in real time. Clients ultimately make their own strategic collateral decisions and execute their transactions through Collateral Central.

Kelly Mathieson, J.P. Morgan’s global head of collateral management, said: “Clients are faced with increased market complexity and a changing regulatory environment with regard to how they think about their collateral. Collateral Central can help them navigate this new landscape. For the first time, clients can manage and optimize their entire collateral portfolio, regardless of counterparty, custodian or clearing bank and across all supported geographies. J.P. Morgan is the only collateral agent able to offer this comprehensive global solution.”

Ricky Maloney, co-head of service delivery for IGNIS Asset Management, notes that, “Under the new regulatory framework, collateral has become very valuable to us as an institution. Understanding all the assets we hold, and the margin and other obligations that need to be met, allows us to manage our collateral optimally. Ultimately, that affects our bottom line.”

In enhancing its collateral management business, J.P. Morgan has designed services for institutions as varied as asset managers, pension funds, corporations and banks, all of whom have to carefully monitor their collateral in order to manage their market exposure and risk.

The service was created and will be managed by the J.P. Morgan’s Agency Clearing, Collateral Management and Execution (ACCE) business within the Corporate & Investment Bank.