NEW YORK and BOSTON – J.P. Morgan and National Financial Services LLC, a Fidelity Investments® company, today announced that J.P. Morgan has chosen National Financial as the preferred clearing provider for clients of its Broker Dealer Services (BDS) business, the business which provides correspondent clearing on a fully disclosed basis to third party introducing broker-dealers. Following a strategic review, J.P. Morgan has decided to transition clients of its BDS unit to another clearing firm.
J.P. Morgan and National Financial will provide significant support for BDS clients who elect to transition to National Financial, offering a thoughtful service continuity plan and streamlined conversion options.
"In seeking a solution for clients of our BDS business, we approached National Financial because we share a focus on providing first class service to our clients," said Joe Triarsi, current head of Broker Dealer Services at J.P. Morgan. "We are impressed with the caliber of National Financial's service, technology platform and product line-up, and are confident that National Financial is the optimal transition destination for our clients."
Integral to the continuity plan is the leadership in place to drive the best possible transition experience for clients. Joe Triarsi will initially remain with J.P. Morgan's Broker Dealer Services to oversee the client transitions. Once the transition is complete, Triarsi will join National Financial's senior leadership team. National Financial's management team will remain in place with Sanjiv Mirchandani as president.
"National Financial has been growing its clearing business thoughtfully and this agreement provides us with an opportunity to continue on that strategic path. When we grow, we increase scale and make investments in our capabilities to the benefit of all of our clients," said Sanjiv Mirchandani, president of National Financial. "We pride ourselves on serving some of the highest quality firms in the industry and we look forward to maintaining that caliber of clients as we transition additional high quality clients to National Financial."
J.P. Morgan will continue to self-clear for its own broker-dealers, including the firm's Asset Management, Chase and Private Banking clients. J.P. Morgan remains fully committed to its agency clearing and prime brokerage businesses.
The agreement will not have a material impact on the earnings of JPMorgan Chase & Co.
About Fidelity Investments
Fidelity's goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. With assets under administration of $4.9 trillion, including managed assets of $2.0 trillion as of September 30, 2014, we focus on meeting the unique needs of a diverse set of customers: helping 23 million people investing their own life savings, 20,000 businesses to manage their employee benefit programs, as well as providing 10,000 advisors and brokers with technology solutions to invest their own clients' money. Privately held for nearly 70 years, Fidelity employs 41,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit www.fidelity.com.
About J.P. Morgan's Corporate & Investment Bank
J.P. Morgan's Corporate & Investment Bank is a global leader across banking, markets and investor services. The world's most important corporations, governments and institutions entrust us with their business in more than 100 countries. With $21.2 trillion of assets under custody and $419 billion in deposits, the Corporate & Investment Bank provides strategic advice, raises capital, manages risk and extends liquidity in markets around the world. Further information about J.P. Morgan is available at www.jpmorgan.com.