J.P. Morgan to close GSF repo settlement 26 July 2016 New York Reporter: Drew Nicol
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J.P. Morgan is winding down its government securities settlement services with a view to exiting the business by the end of 2017.
The decision will primarily affect the bank’s general collateral finance repo settlement and settlement of auctions guaranteed by Fixed Income Clearing Corp.
The move will affect a small number of clients in the US, which are mainly broker-dealers.
In a statement on the decision, J.P. Morgan said that the repo settlement service is a “non-core” service that was being closed in favour of focusing on other strategic growth opportunities through a more streamlined business model.
The bank added: “We expect the majority of client transitions to be completed by the end of 2017. We have built our custody, collateral management, prime brokerage and treasury services businesses into leading franchises, and in no way are those growing businesses affected by this decision.”
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