JPMorgan is First Issuer to Launch Certificates to UK Investors.Business Editors LONDON--(BUSINESS WIRE)--Dec. 5, 2002 - Following the recent launch of covered warrants, the UK client base can now benefit from JPMorgan's innovation and broader array of securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. derivatives JPMorgan today announced the launch of JPMorgan Certificates to UK investors, making them the only UK issuer with both warrants and certifcate products in issue. The launch of certificates is the second phase in the opening of a new market for securitized derivatives, which began on October 28th with the launch of covered warrants to retail investors Retail Investor Individual investors who buy and sell securities for their personal account, and not for another company or organization. Notes: Retail investors buy in much smaller quantities than larger institutional investors. following the introduction of a new FSA FSA Financial Services Authority FSA Food Standards Agency (UK) FSA Farm Service Agency (USDA) FSA Financial Services Agency (Japan) regulatory structure. The launch of JPMorgan Certificates, as it develops, provides investors with the opportunity to invest in a wide range of underlying assets, in a number of different markets, from UK and foreign equities and indices to equity and index baskets. JPMorgan Certificates give individual investors in the UK access to innovative products which have generally only been available to market professionals, and allow investors to choose participation in the positive or negative performance of an underlying asset. The certificates will be cash settled, listed and traded on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. , will settle through CREST, and are are not subject to Stamp Duty Stamp Duty An ad-valorem or flat rate charged upon certain documents. Notes: This is an extra charge placed on documents. See also: Ad Valorem Tax Stamp duty Applies mainly to international equities. Reserve Tax for buyers or sellers. Live quotes and detailed product information on JPMorgan Certificates can be found on www.JPMorganInvestor.com, JPMorgan's dedicated website for securitized derivatives. Certificates differ from covered warrants in that they are unleveraged products, which synthetically track the underlying on a one-to-one basis. Initially, JPMorgan's launch includes Bull Certificates and Discount Certificates. Bull Certificates replicate the performance of a given underlying, and provide investors with a way to take a bullish Bullish Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook. bullish position on an underlying with no limit on the potential earnings. Potential losses are limited to the initial investment. Discount certificates allow investors to replicate the performance of a given stock, index or equity basket at a discount compared to the actual underlying price. The potential gain, however, is limited to a pre-defined level. They provide investors with an inexpensive method of gaining exposure to an underlying asset, but with a capped potential gain. "Our securitized derivatives programme continues JPMorgan's tradition of derivatives excellence, enabling institutional and individual investors to leverage their investment ideas," said Toby Peters, JPMorgan equity derivatives In finance, an equity derivative is a class of financial instruments whose value is at least partly derived from one or more underlying equity securities. Market participants trade equity derivatives in order to transfer or transform certain risks associated with the marketing. "By investing in JPMorgan Warrants and Certificates, individuals and professionals can benefit from JPMorgan's expertise, and are able to trade a wide range of products in real time at competitive spreads." The UK is the fourth market in Europe where JPMorgan has launched a warrants and certificates business in the past two years - having successfully launched the products in Germany, Switzerland and Italy. Discount certificates in particular have proved extremely popular in Switzerland and Germany, and currently there are around 3,600 'Discos' listed in Germany alone. In the coming months, JPMorgan intends to systematically increase the number and variety of products and to integrate its derivatives expertise and breadth of research with this offering, in order to continue providing investors with innovative investment solutions. JPMorgan's award-winning derivatives business has been named IFR's Derivatives House of the Year 2001, and Risk magazine's Derivatives House of the Year 2002. J.P. Morgan Chase & Co. is a leading global financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. firm with assets of $742 billion and operations in more than 50 countries. The firm is a leader in investment banking, asset management, private banking, private equity, custody and transaction services, and retail and middle market financial services. A component of the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. , JPMorgan Chase JPMorgan Chase (NYSE: JPM TYO: 8634 ) is one of the oldest financial services firms in the world. The company, headquartered in New York City, is one of the leaders in investment banking, financial services, asset and wealth management and private equity. With assets of $1. is headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and serves more than 30 million consumer customers and the world's most prominent corporate, institutional and government clients. Information about JPMorgan Chase is available on the internet at www.jpmorganchase.com. |
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