AFTAs 2014: Best Cross-Asset Trading Initiative—JPMorgan Markets

As trading evolves in an increasingly complex and highly regulated market, firms need technology that offers a competitive advantage and is also cost-effective. The Nexus electronic trading system is a powerful tool that delivers this for JPMorgan Markets’ institutional clients. These traders want to benefit from the operational capabilities of managing complex investment strategies across a multitude of asset classes and geographies, with lower operational loads. They also want access to the bank’s balance sheet and market access through a cost-efficient platform. Both are delivered through a single user interface that consolidates more than 30 individual platforms into one, which significantly reduces the cost of trading and the operational burden.

Nexus is a front-to-back tool designed to bring together bespoke managed and systematic strategies to clients in order to “adjust exposures across multiple assets without having to enter into a new transaction to change exposure or substitute each individual component,” according to the bank. “This means that a single strategy can be used to implement both tactical allocations through time or systematic investment strategies.” Through Nexus, users can also obtain exposure to their strategy via multiple investable formats such as certificates, notes, and over-the-counter (OTC) derivatives; and risk profiles such as delta one, leverage, and capital protection. JPMorgan supports over 300 indices across these various asset classes and risk profiles.

The ultimate goal of Nexus is to provide a tool that offers access to the full breadth of execution services on a single platform. The full trade and investment lifecycle is already covered via a multitude of electronic distribution channels—including web, desktop, and mobile—to provide more flexibility. It has seen significant uptake over its short lifetime. The scale of the platform, as well as the customization it supports, are most likely to evolve over time while more products will come to populate the shelves of Nexus.

Nexus has seen significant uptake over its short lifetime. The scale of the platform, as well as the customization it supports, are most likely to evolve over time while more products will come to populate the shelves of Nexus.