J.P. Morgan is winding down its broker-dealer services (BDS) clearing business after naming National Financial as the preferred provider for third-party clients.
The bank said it is winding down the clearing business due to a “strategic review”. It currently provides correspondent clearing on a fully disclosed basis to third-party broker-dealers. No financial details were disclosed.
National Financial will act as clearing provider to all broker-dealers that elect to make the move.
J.P. Morgan BDS head Joe Triarsi will oversee the move before joining National Financial’s senior leadership team.
The bank said it will continue to clear for its own broker-dealers, including its asset management, Chase and private banking businesses. It also reaffirmed its commitment to agency clearing and prime brokerage.
“In seeking a solution for clients of our BDS business, we approached National Financial because we share a focus on providing first class service to our clients,” commented Triarsi.
“We are impressed with the calibre of National Financial’s service, technology platform and product line-up, and are confident that National Financial is the optimal transition destination for our clients.”
