Products June 11, 2003

JPMorgan Launches Risk Assessment Tool

June 11, 2003 (PLANSPONSOR.com) - Broker dealers looking for ways to assess possible market risk in their investment products have a new risk management service to consider from JPMorgan.
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MorganRisk is the new service assisting buy side clients in gauging market risk in their investment portfolios. The Applications Service Provider (ASP) will host risk software for use by clients, allowing them to provide their position or transaction feeds to MorganRisk, which will measure the risk exposures using the firm’s proprietary VaR and Stress testing methods in addition to sensitivity analysis, according to a news release.

Initially, instruments covered by MorganRisk will include equities, vanilla equity derivatives, fixed income, vanilla interest rate and foreign exchange derivatives, commodity derivatives and most mortgage-backed securities. However, after the product is officially launched, the coverage will expand to include non-vanilla derivatives.

After a beta testing introduction beginning in July, JPMorgan will offer MorganRisk to its clients so they can view risk measurement results and conduct an online risk analysis on their portfolio exposures. MorganRisk offers clients several different service levels, from a simple set of risk exposure reports on a pre-determined schedule to on-demand reporting and online analysis for a number of users.

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