JPMorgan to Stop Settling Government Securities for Dealers
- Shift would leave BNY Mellon dominating niche of repo market
- Rising cost of transactions sparks move, seen by end of 2017
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JPMorgan Chase & Co. plans to exit the business of settling government securities for most dealers by the end of 2017, including some transactions in a key corner of the $1.6 trillion repurchase-agreement market.
The departure from the business of facilitating settlement of such trades with 30 dealers and broker-dealers, a fraction of the bank’s hundreds of clients, comes as the company focuses on more profitable areas like prime brokerage and custody services.