NEW YORK, September 16, 2010 - J.P. Morgan has enhanced its offering of regulatory reporting services for money market funds to assist asset managers in complying with the SEC revised Rule 2a-7 requirements.
J.P. Morgan has enhanced its accounting and compliance monitoring services to comply with new money market rules for higher credit quality, improved liquidity, and shorter maturity limits, including the calculation of the new weighted average life. J.P. Morgan is also prepared to help advisors meet enhanced disclosures of fund level, class level and security level data required in the new monthly public website posting and SEC Form N-MFP filing.
The revised SEC Rule 2a-7 also requires funds to establish procedures for stress testing, periodic testing of a funds ability to maintain a stable NAV. J.P. Morgan's enhanced services for money market funds features a suite of stress tests, including: an increase in short-term interest rates; an increase in shareholder redemptions; a downgrade of or default on portfolio securities; a widening or narrowing of spreads between yields on an appropriate benchmark selected by the fund for overnight interest rates and commercial paper and other types of securities held by the fund; and a combination of events. J.P. Morgan is anticipating that it will offer additional stress test scenarios that can provide useful insight into how adverse market conditions can affect money market fund performance.
"The pressure on asset managers to keep pace with the rate and scope of regulatory changes, including Rule 2a-7 has been significant," said Mark Kelley, asset gatherers segment executive for J.P. Morgan Worldwide Securities Services. "We believe we best serve our clients by responding quickly to these reforms, consulting with our clients to fully understand their needs, and providing timely and effective solutions."
About J.P. Morgan Worldwide Securities Services
J.P. Morgan Worldwide Securities Services (WSS) is a premier securities servicing provider that helps institutional investors, alternative asset managers, broker dealers and equity issuers optimize efficiency, mitigate risk and enhance revenue. A division of J.P. Morgan Chase Bank, N.A., WSS leverages the firm's global scale, leading technology and deep industry expertise to service investments around the world. It has $14.9 trillion in assets under custody and $6.7 trillion in funds under administration. For more information, go to www.jpmorgan.com/wss.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.0 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.