According to the New York-based firm, the build-out of the European platform is part of the firm’s wider strategy to invest in Prime Services and offer a full suite of products for hedge fund clients globally.
JP Morgan launched the business, after establishing a separate legal entity in the UK, necessary for it to offer a full range of prime services, the Financial Times reports.
Over the past year, JPMorgan has also hired about a dozen senior employees for the business.
JP Morgan global head of Prime Services Sandie O’Connor said these local capabilities will allow the firm’s international clients to have integrated access to the broader JP Morgan franchise across asset classes, alongside services including equity financing, securities lending, clearing, and settlement.
JPMorgan entered the prime brokerage industry three years ago when it acquired Bear Stearns’ platform, which was focused on the US.
The investment bank is even planning to expand its prime brokerage services to Asia, most probably at the end of this year.
The prime services business shrank for banks in the financial crisis, as the hedge-fund industry suffered heavy losses and banks reduced their lending risk. The industry has since recovered, with assets above their pre-crisis levels and now topping $2 trillion.
