PDCA technology enables financial intermediaries to
provide new derivatives and risk management products to
their customers without assuming the market risks
customarily associated with risk transfer, according to
JPMorgan, the investment bank arm of JPMorgan Chase, has signed a letter of intent for the exclusive rights to create products based on economic statistics published by the US government and US government agencies.
Similarly, Deutsche Bank has signed a letter of intent for exclusive rights to use Longitude’s PDCA technology to create derivatives based on economic statistics published by the European and the Japanese governments.
These products, which are slated for launch by the two
banks before the close of 2001, will allow investors
explicit, as opposed to implicit, pricing and trading of
economic factors, such as inflation and productivity,
which impact a wide range of asset classes.