JPMorgan profits reached $4.8 billion during the second quarter of 2010, the bank has announced.
According to the financial services provider, the figure, which was equivalent to $1.09 per share, represented an increase on the $2.7 billion seen in the same period of 2009.
The net income included $1.5 billion taken from JPMorgan’s loan loss reserves, while the figure was also “partially offset by a charge of $550 million for the UK bonus tax”, Jamie Dimon, chairman and chief executive officer at the bank explained.
Commenting on the overall performance of the bank, Mr Dimon said: “Many challenges and uncertainties remain which may result in unintended consequences for our clients, the markets and our businesses.
“With a need for global regulatory coordination and hundreds of rules to be written, increased focus is critical in order to implement these reforms in a way that protects consumers and the competitiveness of the US financial system, while ensuring the flow of safe and sound credit.”
He added that although the number of customers defaulting on loans and making late payments fell, “they remain at extremely high levels”.
Further figures from JPMorgan revealed its tier one common ration was recorded at 9.6 per cent by the end of the quarter.
The bank also provided clients with almost $700 billion worth of capital in the form of loans across the first half of 2010.
By Jim Ottewill
Source: http://www.bobsguide.com/guide/news/2010/Jul/16/JPMorgan_announces_%244.8bn_profits_for_second_quarter.html
Bloomberg – Investors were the most bearish on U.S. stocks in at least four years as money manager scaled back their outlook for global growth and raised their cash holdings, a BofA Merrill Lynch Global Research survey showed.
A net 14 percent of respondents, who together manage about $530 billion, said the U.S. was the region they would most like to have under-represented in their investments, a level not since November 2006. Last month, the same amount said America was the region on which they would most like to have an overweight stance.
Hedge fund trading activity in US equities is growing in contrast to trades carried out by proprietary trading desks, new research has shown.
A report on low-touch trends in US equity trading indicated that trading by hedge funds and long-only asset managers accounted for almost one-third of the average US daily share volume in the first quarter of 2010. This was an increase from 25% in December 2008.
Hedge funds carry out approximately twice as much trading activity as long-only asset managers, the TBB report, US Equity Trading 2010: Low-Touch Trends, showed.
The research indicated that traders are decreasing their reliance on sales traders and turning to algorithms instead. However, hedge funds are more likely to use sales desks due to the access this gives them to ideas and research.
Over half (54%) of the hedge fund traders interviewed by TABB used a sales desk as the execution venue for their trades compared to 38% of other asset managers. Nearly one-fifth (18%) of hedge funds chose an algorithm, compared to 31% of long-only managers.
Full article at – http://www.hedgefundsreview.com/hedge-funds-review/news/1722788/hedge-fund-trading-volume-rises-algorithms-popular
HSBC is moving closer to unveiling an Asian prime-broking product as it poaches a pair of Citi staff.
It isn’t being spoken about widely, and representations and promises aren’t being made to potential clients yet, but HSBC is moving closer to joining the roster of institutions that offer a prime-broking product in Asia.
Read full article at http://www.asianinvestor.net/News/219612,hsbc-develops-asian-prime-broking-plans.aspx
SunGard has been named as “Technology Provider of the Year” in the Global Securities Lending (GSL) Securities Lending Industry Awards 2010.
The awards are designed to recognize excellence in securities finance, with industry participants invited to nominate those firms they feel are top performers. In total 43 firms were nominated in 22 categories, and just under 6,000 votes were received. SunGard was recognised for both its new technology innovation and its commitment to an existing portfolio of well-established securities lending solutions.
GSL Editor-in-Chief Roy Zimmerhansl commented: “We’d like to congratulate SunGard on being named Technology Provider of the Year at the Securities Lending Industry Awards 2010. In what has been a turbulent time for this industry, the voting public has clearly decided that SunGard has continued to perform at a high level. They join our other winners in leading what we hope will be a strong second half for 2010, and we wish them well.”
Brian Traquair, president of SunGard’s capital markets and investment banking business, said, “This continued recognition from GSL’s readers is testimony to the confidence our customers have in our people and solutions. We recognize that the securities lending industry is ever evolving, and by launching new solutions such as Apex, we have shown our commitment to working together with our customers to address new market requirements as they arise. Our goal is to help our customers gain increased transparency, improved efficiency and reduced costs across their business, and this award shows that we are going the right way.”
Source: http://www.bobsguide.com/guide/news/2010/Jul/12/SunGard_Recognized_as_%27Technology_Provider_of_the_Year%27_by_Global_Securities_Lending.html
Bank of America (BofA) Merrill Lynch has announced the launch of its Global Liquidity Platform to offer clients “seamless and integrated” solutions.
According to the financial services provider, the new technology should improve the way in which its global customer-base access liquidity.
Work on the multi-million dollar platform was started by BoFA Merrill Lynch during 2009 and is aimed at customers from the corporate and treasury management sectors.
The platform incorporates interest optimization which provides customers with access to the position of balances held across a range of territories.
Greg Kavanaugh, head of Global Liquidity, Pricing and Segment Integration at BofA Merrill Lynch, said: “The new Global Liquidity Platform gives clients access to a truly global product offering and enables the bank to bring new products to market faster and more efficiently.
“With a modular approach that operates through a single hub, we are eliminating dependency on multiple account platforms.”
Previously, BoFA announced it would be working with Accuity’s international bank account number conversion solution to help its client-base comply with changes to financial regulations related to the Single Euro Payment Area.
By Jim Ottewill
Source: http://www.bobsguide.com/guide/news/2010/Jul/9/BoFA_launches_Global_Liquidity_Platform.html
Chi-X® Global Inc. today announced that its Japanese subsidiary, Chi-X Japan Limited, has been granted a PTS (proprietary trading system) License by the Japan Financial Services Agency (FSA). Trading on the Japanese equities platform is expected to begin July 29.
Chi-X Global currently operates Chi-X Canada and is soon expected to launch Chi-East, the Chi-X Global / Singapore Exchange Limited joint venture that will be the region’s first exchange-backed, non-displayed trading platform1. Chi-X Global is a subsidiary of electronic trading pioneer Instinet Incorporated, which is the largest and founding shareholder of Chi-X Europe2. Instinet is a wholly-owned subsidiary of Nomura Holdings, Inc.
View full release at – http://finance.yahoo.com/news/ChiX-Japan-Receives-Launch-bw-2431318944.html
Transaction Network Services (TNS) has been a leading provider of mission critical connectivity and data services to financial communities since 1990.
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Since its inception, TNS has expanded its network coverage extensively around the globe, including the Asia Pacific region, North America and Europe.
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Exegy, Inc., the market data appliance company announced today that the Exegy Ticker Plant driving the MarketDataPeaks web site hit 3,245,070 messages per second. This is a new record and surpasses the previous high water mark of 2,808,532 mps reached on 6 May 2010 during the flash crash.
The busiest moment occurred at 10:00 a.m. when the Conference Board Consumer Research Center released consumer confidence data that surprised market participants.
The very deep US order book feeds sent out 763,535 messages per second as market makers and electronic traders changed their exposure in reaction to the new economic data. The options markets also responded by changing quotes on thousands of contracts simultaneously to reflect the change in underlying prices. This resulted in 2,109,884 messages per second.
Each of the US stock markets changed their top-of-book quotes as their liquidity providers reacted to the Conference Board number, and this was reflected in a message rate of 314,794 messages per second in quote traffic. In addition, exchange trading systems reported 43,479 messages per second at 10:00 a.m. There were also 13,378 messages per second from the other feeds, such as CME flowing into the Exegy Ticker Plant.
A single Exegy Ticker Plant provides all the updates for www.MarketDataPeaks.com, the first public website that provides a minute-by-minute account of the aggregated volume of market data messages across major North American exchanges. The site is sponsored by Exegy, Essex Radez and the Financial Information Forum.
Source: http://www.bobsguide.com/guide/news/2010/Jun/30/New_Record_for_MarketDataPeaks.com.html
About FIF
The Financial Information Forum (FIF) addresses the implementation issues that impact the financial technology industry across the order life cycle. FIF provides a collaborative environment for subscribers to benefit from technology, regulatory, and market innovations. For more information, please visit FIF.com.
