JPMorgan Rolls Out FinIQ

The platform is currently in its final stages of user-acceptance testing and is expected go live in mid-June, says Will Shropshire, managing director, regional head of FX structuring and sales in Singapore for JPMorgan.

The bank has integrated the new solution, which runs on dual-CPU Dell servers, with its option-trading, delta-hedging, money-markets, private-banking and accounting systems to create an automated system, says a bank technology spokesperson. To achieve operational flow that is as seamless as possible, the bank integrated the new solution with its internal trade booking system, which involved its FX-options and deposit systems, adds the spokesperson.

According to a FinIQ official, the platform runs on a SQL database and can be integrated with applications chosen by the client, says a vendor official. In JPMorgan's case, the bank has deployed it in a Microsoft environment using technology from Web-application delivery vendor Citrix. The vendor official declines to go into further detail about the JPMorgan deployment.

JPMorgan's Shropshire says that FX-linked investments started growing rapidly in 2001 when interest rates were generally low and equity investments were less appealing. Dual-currency investments became popular because they allowed more portfolio diversity. The demand for such products created the need for the pricing and processing efficiencies generated by the new platform, he says.

"[FX-linked investments] is a business that we've been undertaking for many years," says Shropshire. "This platform enables us to achieve scale and deliver first-class products in a more efficient and controlled fashion through heightened use of straight-through processing."

While JPMorgan explored a variety of system options, both internally and externally, FinIQ's specialization in structured deposits and strong track record stood out, says Shropshire.

"FinIQ's implementation of FX-linked deposit systems with other institutions demonstrates how appropriate their platform is. It's a vendor system that is tailored for this product," says Shropshire, adding that while the initial implementation of The FinIQ System will be limited to Asia it will likely play a large role in global e-commerce strategy.