AUD OTC Client Clearing Launched by JPMorgan
(27 September 2018 - Australia) JPMorgan is the first bank set to launch over-the-counter (OTC) Australian Dollar (AUD) clearing after executing a trade for one of its underlying clients recently.
The ASX operates the largest listed interest rate derivatives market in the Asia region with an annual turnover of A$53 trillion and fully developed OTC Clearing service.
JPMorgan was broadening products for their clients and wanted to provide the local market support for investors. The launch underscores JP Morgan’s commitment to clearing said Head of Asia clearing David Martin. “This investment underlines our commitment to the Australian and New Zealand marketplace, and the Asian marketplace in general. The OTC derivatives clearing market was continually changing and JPMorgan needed to offer greater choices. Clients need a clearing broker whose business model continues to evolve and a product offering that continues to expand. JPMorgan’s approach also allows our clients to use the depth of our local markets franchise and our ability to make markets at the ASX” he said.
Futures & Options and OTC Clearing manager at JPMorgan David Stinson said that by using the ASX services, it allowed them to extend benefits to more clients. “By supporting the cross-margining facility that ASX offers across its cleared interest rate derivatives, we are extending this benefit to buy-side clients and allowing them to access funding and margin efficiencies,” he said.
Helen Lofthouse, ASX Executive GM of derivatives and OTC markets stated that the ASX had invested in a capital efficient clearing infrastructure and JP Morgan’s access demonstrated its commitment to clients. “It also shows ASX’s determination to develop services valued by the market, which includes local clearing that’s open throughout the Australian and New Zealand time zone,” she said.