J.P. Morgan Asset Management (JPMAM), which has USD2.6trn AuM, has selected J.P. Morgan’s securities services division, part of the corporate & investment bank, to support a new global operations model using its investment middle office services capabilities. JPMAM is commencing a multi-year initiative to implement this model, which includes the provision of middle office services, collateral management and risk analytics. These new services add to the custody and accounting services that J.P. Morgan already provides to JPMAM.
The first phase is planned for mid-2022, when J.P. Morgan will provide operational processing support for a range of derivatives products. Subsequent phases will begin in 2023, and will involve migration of the operational servicing of other asset classes. JPMAM was one the first managers to outsource investment operations, striking a deal with BNY in 1999.