It’s one of the oldest debates within banks derivatives groups: how much should firms invest in flow trading of plain-vanilla interest-rate, currency, credit and commodity derivatives and how much in devising highly structured, customized trades that bring high margins. Different firms have struck this balance differently. Most obviously Chase was widely recognized as the biggest flow monster in the derivatives markets, particularly interest-rate swaps, while JPMorgan was more renowned for high-margin, complex trades. When the two banks merged, customers and competitors wondered which philosophy would win out at two of the leading banks in the derivatives markets.
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