Many funded strategies can be replicated synthetically. By replacing a funded investment with an unfunded swap on the same strategy, investors can release cash for capital intensive investments, financing, liquidity or may invest at better rates available to them.
Nexus
J.P. Morgan’s platform for cross-asset synthetic strategies
Deliver your investment strategy through Nexus
Nexus empowers you to:
- Attract investors with various synthetic delivery formats and payoffs
- Quickly establish track records for innovative strategies across all asset classes
- Improve operational efficiency and governance effectiveness
The Nexus solution
By creating a single reference instrument, it is possible to offer alternative payoffs linked to the same strategy depending on the type of management required. The platform offers a wide range of investable formats including swaps, certificates, warrants, funds and the option component of 3rd party issued note.
Investing synthetically can be lower cost than borrowing against assets. As J.P. Morgan owns the hedge positions and can potentially net across the bank, credit risk is lower and higher leverage can be offered at lower rates than an equivalent standalone loan.
The platform handles all operational aspects including financing, borrow, cash flows, corporate actions, exchange membership, margining, settlement, clearing, reporting, administration and custody. This can lower cost for investors and managers and increase speed of execution.
The platform offers a broad spectrum of reference assets which can be used as building blocks to create customised strategies. These include single stocks, indices, ETFs, mutual funds, J.P. Morgan investable indices, as well as J.P. Morgan future trackers on equities, FX, rates, credit and commodities.
Nexus strategies benefit from J.P. Morgan’s extensive footprint across global exchanges, including otherwise hard to access markets, at competitive rates. The strategies can be rebalanced intraday (e.g. using VWAP, TWAP and POV orders) which managers submit via the Nexus front-end.
Strategy levels are available daily via Bloomberg and the Nexus website. Position reports are provided with an exhaustive breakdown of exposures. All fees are determined at the inception of the product and are fully transparent. Each strategy is monitored closely under an IOSCO compliant governance.
The J.P. Morgan Nexus Platform is available only to institutional clients of J.P. Morgan. If you believe you qualify and would like to learn more about Nexus, email nexus_platform@jpmorgan.com
Complaints:
If you have a complaint about a J.P. Morgan Nexus strategies you can report it to us in a variety of ways. You can call your usual J.P. Morgan contact, or alternatively you can use email or post.
Email:
nexus_platform@jpmorgan.com
Post:
J.P. Morgan
Nexus Strategies - Complaints
25 Bank Street
London, E14 5JP
United Kingdom
Any complaint regarding the person advising on, or selling, any product referencing J.P. Morgan Nexus strategies, can be submitted directly to that person. Once we have received your complaint, we will acknowledge it, investigate it and respond to you in a fair and timely manner.
Complaints made against a J.P. Morgan UK regulated entity will be handled in accordance with J.P. Morgan’s Complaints Handling Process - UK Regulated Entities.
Regulatory disclosure:
- IOSCO Compliance Statement
- Nexus - Conflicts of Interest Disclosure Statement
- IOSCO, EU Benchmarks Regulation and UK Benchmarks Regulation Supplemental Disclosure
EU and UK benchmarks regulations:
J.P. Morgan Securities plc (JPMS plc) was registered as a benchmark administrator under article 34 of the EU Benchmarks Regulation (Regulation (EU) 2016/1011) (“EU BMR”). Due to Brexit, JPMS plc is no longer a benchmark administrator under EU BMR and instead is a benchmark administrator under article 34 of the United Kingdom Benchmarks Regulation (“UK BMR”) and can be found listed on the FCA Register. The Nexus Platform Business of JPMS plc creates indices, some of which are considered “benchmarks” under one or both of EU BMR and UK BMR.
IOSCO, EU Benchmarks Regulation and UK Benchmarks Regulation Supplemental Disclosure
JPM plc’s IOSCO, EU Benchmarks Regulation and UK Benchmarks Regulation Supplemental Disclosure can be viewed here.
EU Benchmarks Regulation and UK Benchmarks Regulation Compliance Statement
JPMS plc’s EU Benchmarks Regulation and UK Benchmarks Regulation Compliance Statement can be viewed here.
Benchmark Families
The Nexus Benchmark Statement families can be viewed here.
Changes to Interbank Offered Rates (IBORS) and other benchmark rates:
For additional information about indices which utilise an IBOR rate, either directly or indirectly, please click here.
The information on this website is intended for professional clients and eligible counterparties and is for discussion purposes only. It does not constitute a financial promotion. It is not intended to provide the full details in relation to J.P. Morgan NexusSM and is incomplete without reference to, and should be viewed solely in conjunction with, additional detailed information from JPMorgan Chase & Co. or any of its subsidiaries (J.P. Morgan). It does not constitute an offer or solicitation for the purchase or sale of any product or a commitment by J.P. Morgan to enter into any transaction. This website is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisers before engaging in any transaction. This information is not intended for and should not be relied upon by retail customers or for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use is prohibited by law or regulation. This information has been prepared by J.P. Morgan Securities plc, authorized by the UK Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Please consult jpmorgan.com/pages/disclosures for additional disclosures.