Canadian Treasurer

December 13, 2010

J.P. Morgan enhances corporate foreign exchange service

New York-based J.P. Morgan Treasury Services has expanded its foreign exchange offering by introducing enhancements that help corporate clients cut costs and simplify the way cross-currency ACH (Automated Clearing House) payments are made.

Instead of initiating payments from multiple in-country bank accounts and paying numerous wire transfer fees, clients now can use a single account to perform foreign exchange conversion and execute ACH transactions in 19 currencies. The solution now covers 40 countries and will include additional currencies in the near future.

“J.P. Morgan's cross-currency platform is available to both U.S. and Canadian clients, allowing them to originate ACH payments using a Canadian dollar account to any of the 18 additional currencies that are available,” Traci Filler, managing director, foreign exchange, J.P. Morgan Treasury Services, tells Canadian Treasurer. “Clients can also send Canadian dollar ACH payments originated out of a US dollar account to cover management of their Canadian subsidiaries. With this new platform, clients can originate funding out of 40 currencies in London and settle in 19 available currencies.”

The cross-currency platform was built in-house using proprietary J.P. Morgan technology, Filler says. “The new service is live and we have clients leveraging the platform's considerable capabilities,” she tells Canadian Treasurer.

J.P. Morgan says its service is ideal for businesses with large volumes of non-urgent ACH payments that want to eliminate the administrative and financial complexity of managing and reconciling multiple foreign accounts. As an example, one J.P. Morgan client is using the service to make its payroll payments from one central account, even though its employees are dispersed globally. As a result, the client was able to close numerous in-country bank accounts and cut costs associated with multiple wire fees and managing and reconciling these accounts, JP Morgan says. The service can also be used to make a single payment to an overseas vendor.

"By expanding our cross-border ACH capabilities, J.P. Morgan's clients now have more currency and low value payment options,” Filler says. “Clients also benefit from lower transaction, foreign exchange and reconciliation costs associated with using a single account rather than maintaining multiple local accounts globally."

To help clients protect themselves against foreign exchange volatility, JP. Morgan offers a dedicated FX Desk offering a range of facilities, including simple forward contracts, more sophisticated options, and diversified hedging strategies, Filler says.

In total, J.P. Morgan's foreign exchange solutions offer execution of payments in more than 135 currencies, the bank says.



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