SunGard's Adaptiv Collateral solution, aimed at investment banks, hedge funds, investment funds, insurance companies and corporate treasury departments, will be delivered using an Application Service Provider (ASP) model, hosted by SunGard Availability Services, thereby helping to deliver immediate and ongoing cost savings in system administration, personnel and IT equipment to JPMorgan. SunGard's Adaptiv Collateral solution will likewise help institutional clients outsourcing their derivatives collateral management and non-core hedging and trading activities to JPMorgan to enjoy immediate cost savings and the ability to focus on key competencies.
Murray Brown, product head for Derivatives Collateral Management at JPMorgan Worldwide Securities Services, said: "JPMorgan is a significant player in both collateral management and the OTC market. Our new OTC derivatives collateral management service will help provide increased efficiencies for our clients. We expect particular interest from the buy side of the OTC derivatives market where participants seek to outsource the non-core parts of their trading and hedging activities. Having the best collateral management system is integral to the success of this service."
Juerg Hunziker, president of SunGard's Adaptiv business unit, said, "I am delighted that JPMorgan has selected SunGard Adaptiv and entered into an agreement to jointly market its OTC derivatives collateral management service with SunGard. This arrangement helps JPMorgan to concentrate on providing a world class derivatives collateral service to its institutional clients, while helping to strengthen SunGard's position as one of the world's leading providers of outsourced solutions to the financial services industry."
SunGard Adaptiv's Collateral solution helps investment banks to maximize trading opportunities for their clients through accurate and timely updating of limits. Trading can continue between the bank and its counterparties where it may otherwise have broken down, while equalizing disparities in creditworthiness. The solution is designed for global use across multiple sites. In addition, Adaptiv Collateral helps any number of OTC derivative agreements to be established between the same two signatories, and for these to be governed by any one of the legal documentation types registered in the system.