JPMorgan may need to revise timeline for settlement business exit: Fed's Powell
Reuters
Published Oct 24, 2016 02:10PM ET
Updated Oct 24, 2016 02:20PM ET
JPMorgan may need to revise timeline for settlement business exit: Fed's Powell
(Reuters) - JPMorgan Chase & Co (N:JPM) may need to change its timeline for an exit from the business of settling trades of U.S. government securities, Federal Reserve Governor Jerome Powell said on Monday.
Powell said JPMorgan had publicly recognized the importance of not disrupting financial markets when it leaves the business.
"The timeline set for a gradual transition over the next two years should be sufficient to avoid significant dislocations," Powell said in prepared remarks for a conference in New York on the structure of the U.S. Treasury market.
"However, if unexpected complications arise, that timeline may need to be adjusted," Powell said.
Currently, JPMorgan and Bank of New York Mellon Corp (N:BK) are the only two companies that provide settlement services for U.S. government securities.
"Any disruptions to these critical market services could have serious consequences for financial stability," Powell said, adding that the Bank of New York Mellon will continue to be held to higher standards of resilience given its systemic importance.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.