Euromoney Sibos Insider: JPMorgan focuses on emerging market clearing
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Euromoney Sibos Insider: JPMorgan focuses on emerging market clearing

JP Morgan reveals its expansion in Direct Custody and Clearing in Brazil and Russia is part of its plan to tap more into the emerging markets.

JP Morgan is to expand in Brazil and Russia across Direct Custody and Clearing (DCC), in a bid to increase its footprint in the emerging markets. In tandem, it has also hired Katerina Sizova as head of the business in Russia. Sizova will be responsible for building product capabilities.


In an exclusive interview with Euromoney | Sibos Insider, Nick Rudenstine,Global Head of Investor Services for J.P. Morgan’s Worldwide Securities Services business, unveiled the group’s long term strategy to expand in Asia, with a few other emerging market expansions along the way.


“Asia is a major priority for us over the next few years but this doesn’t mean we will exclude expansions elsewhere while we continue to grow,” says Rudenstine. “While we are pushing to expand our services, operations and headcount in Asia, we are not ruling out launching new offices or services in other countries, such as Africa, when the need to arises.”


JP Morgan was the first foreign bank to open a representative office in Moscow in 1973 and was the first global custodian to offer Russian market entry to its clients in 1995. It currently has $7.5 trillion funds under administration and $16.6 trillion in assets under custody.


“Hong Kong is big news for us,” says Rudenstine. “We are looking to expand DCC capabilities by 2012 and like everyone else, China is a key area for us in invest in. We currently have seven branches there but we are looking at investing more over the years.”


In terms of changing regulations and the sovereign debt crisis having an impact on JP Morgan’s expansion plans, Rudenstine said that from his perspective JP Morgan will actually fair better than its competitors, while also escaping the drive for consolidation.


“While I think the regulatory changes are challenges, there are also some opportunities embedded within them too,” says Rudenstine. “We have a very strong capital base and while there will be an increase in capital requirements, we as a firm have already addressed this issue and it will not be a constraint for us. However, some other banks may have issues with this and of course it may lead to consolidation in the industry.” 



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