JPMorgan is to cut the number of trading platforms as part of a bid to save money, a news report has revealed.
According to the Financial Times (FT), the move could lead to 3,000 bank employees either losing their jobs or being redeployed within the financial institution.
Jes Staley, head of JPMorgan’s investment banking unit, who was quoted by the FT, said in a meeting with investors that the $500 million plan could lead to $300 million worth of savings each year, although this could rise to more than $1 billion as processes become increasingly efficient and costs fall.
Up to 3,000 staff initially began work with the bank to manually input trade data into JPMorgan systems back in 2010 - this number has been reduced to 1,700 with the bank’s overall aim to eventually cut this figure to zero, the newspaper reported.
Dr Giles Nelson, deputy chief technology officer at Progress Software, said: "Traditionally, investment banks such as JPMorgan have always been ahead of the game when it comes to technology.
"As such they have myriad and complicated ecosystems of new and legacy technology, and they need to be able to leverage existing technology while migrating everything onto one platform.â€
Initially, JPMorgan had ten trading systems in place - since then half have been closed with the firm wanting to reduce the total to two by 2014.
The cost of a foreign exchange trade has also fallen from 75 cents to ten cents since 2010.
According to the Financial Times (FT), the move could lead to 3,000 bank employees either losing their jobs or being redeployed within the financial institution.
Jes Staley, head of JPMorgan’s investment banking unit, who was quoted by the FT, said in a meeting with investors that the $500 million plan could lead to $300 million worth of savings each year, although this could rise to more than $1 billion as processes become increasingly efficient and costs fall.
Up to 3,000 staff initially began work with the bank to manually input trade data into JPMorgan systems back in 2010 - this number has been reduced to 1,700 with the bank’s overall aim to eventually cut this figure to zero, the newspaper reported.
Dr Giles Nelson, deputy chief technology officer at Progress Software, said: "Traditionally, investment banks such as JPMorgan have always been ahead of the game when it comes to technology.
"As such they have myriad and complicated ecosystems of new and legacy technology, and they need to be able to leverage existing technology while migrating everything onto one platform.â€
Initially, JPMorgan had ten trading systems in place - since then half have been closed with the firm wanting to reduce the total to two by 2014.
The cost of a foreign exchange trade has also fallen from 75 cents to ten cents since 2010.
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