J.P. Morgan Launches Broker Dealer Fee Lock Solution for Depositary Receipt Issuance & Cancellation
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NEW YORK--(Business Wire)-- J.P. Morgan`s Depositary Receipts (DR) Group today announced that it is launching Issuance & Cancellation (I&C) Lock, a new patent pending solution that allows broker dealer clients to purchase a contract that establishes a future rate for DR issuance and cancellation activity. By purchasing an I&C Lock, broker dealers will have the right, but not the obligation, to execute issuance and cancellation transactions in the future at a predetermined rate. This will provide greater flexibility for meeting their DR investment and trading strategy objectives. The I&C Lock contracts are issued and maintained by J.P. Morgan`s DR Execution Desk. "The I&C Lock solution further demonstrates J.P. Morgan`s leadership and innovation in the DR marketplace," said Claudine Gallagher, global head of J.P. Morgan`s DR group. "No other depositary bank can offer this patent pending product today." "As broker dealers gain greater control of their costs by moving DR fees from a variable to fixed cost structure, they will have incentive to trade more, which leads to greater liquidity in the marketplace," said James Proctor, global head of J.P. Morgan`s DR Execution Desk. For market information on DRs and international equities go to J.P. Morgan`s award-winning Web site www.adr.com. For more information on J.P. Morgan`s DR services please visit http://www.jpmorgan.com/visit/adr. About J.P. Morgan Chase & Co. J.P. Morgan Chase & Co. (NYSE: JPM), is a leading global financial services firm with assets of $2.0 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, J.P. Morgan Chase & Co. serves millions of consumers in the United States and many of the world`s most prominent corporate, institutional and government clients under its J.P. Morgan, Chase, and Washington Mutual brands. Information about J.P. Morgan Chase & Co. is available at www.jpmorganchase.com. J.P. Morgan Chase & Co. John Johmann, 212-270-8371 john.johmann@jpmorgan.com Copyright Business Wire 2009
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