With the management of collateral now seen as a critical front-line resource, JPMorgan has launched a service to provide buy- and sell-side clients with real-time insight into their holdings across custody, clearing and counterparty relationships.
Purpose-built by JPMorgan's Agency Clearing, Collateral Management and Execution (ACCE) business, Collateral Central provides clients with a suite of asset tracking, margin management, proprietary optimisation algorithms and analytic tools.
Billed by the bank as a "virtual global longbox", the service gives a 360 degree view of collateral assets and obligations - as well as access to a dedicated team of JPMorgan relationship managers.
Ricky Maloney, co-head of service delivery for Ignis Asset Management, describes the service as a bottom-line asset. "Under the new regulatory framework, collateral has become very valuable to us as an institution," he says. "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."