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Credit Infrastructure Transformation, Credit Flow Trading and Securitized Products Trading in the Queue for JPMorgan Investment Bank

Michael J. Ashworth, CIO of JPMorgan Investment Bank, part of JPMorgan Chase & Co., directs the company's attention to a credit infrastructure transformation through a complete reengineering of the credit risk department; to credit flow trading with a rollout of an enhanced version of Murex to support trading flow business; and to securitized products training with a buildout of a U.S.-focused trading capability.

JPMorgan Investment Bank
Michael J. Ashworth
Managing Director and CIO of JPMorgan Investment Bank

JPMorgan Chase & Co.
270 Park Avenue
New York, NY 10017


Market capitalization of $145 billion.


JPMorgan Investment Bank, CTO. JPMorgan: CTO, global markets; head of application development and technology infrastructure for the fixed-income business; manager, swap derivatives systems team; application developer, global swaps area.


B.S. in economics, computing and statistics from Bath University, U.K.


Peter Hancock, who ran the fixed-income business at JPMorgan. He was one of the most innovative people I have ever come across and had an amazing ability to attract and retain top talent. He also was down to earth and was always able to carve out time to spend with people.

Top 3 Current Projects

Credit Infrastructure Transformation


The project -- a complete reengineering of our credit risk environment in the wake of our mergers -- is all about improving the accuracy of information for people making credit risk decisions. Start Date: End of 2003.

Expected Completion:


Designated Funds:

More than $100 million.

Credit Flow Trading


We are rolling out an enhanced version of Murex to support our global vanilla credit flow trading business. We are replacing a range of bespoke systems. With volumes expected to grow rapidly, this platform will give us a scalable engine.

Start Date:

End of 2004.

Expected Completion:

Early 2007.

Securitized Products Trading


We are building out a U.S.-focused trading capability for mortgage and related securitized products. We see big revenue opportunities in this area and need to get the systems in place to really scale up.

Start Date:


Expected Completion:

2006/early 2007.

2007 Initiatives

Electronic Connectivity

There is going to be more and more electronic integration with our clients at all levels -- pre-trade, trade execution and post-trade servicing -- across all product areas from the trading businesses through to prime brokerage. Connectivity with clients is relentless in its growth. The disparate number of integration points -- whether multidealer platforms, industry utilities or individual clients -- to which to connect and maintain are the challenge.

Capacity Projects

We are a big player in almost all markets, and we have to continue to grow our applications to cope with that. We have our grid Compute Backbone platform running the majority of our risk management systems on a shared infrastructure, which allows us to scale much more successfully.


IT Budget:

In the range of $1 billion for the Investment Bank.

Size of Technology Team:

About 5,000 employees for the Investment Bank.

Percent of IT Projects Outsourced:

We have nearly 600 outsourced staff. The majority are in India, with some onshore.

Key Technology Partners:

We leverage a variety of vendors, such as ADP, SunGard and Murex. But it's not usually just unwrap the box and pop it in. They are mixed projects between vendor staff and JPMorgan staff.

Success Metrics:

We have a balanced scorecard across our group that measures four main areas. No. 1 is delivering business value, for which we measure the on-time, on-budget delivery of projects. No. 2 is a stable and resilient operating environment. For each application, we have three to five service level agreements defined with the user community. No. 3 concerns productivity and efficiency. Everyone has a target to reach for doing things more cheaply, and we measure our progress. Lastly, we measure client and employee satisfaction. We measure that regularly by taking checkpoints from our staff.

Vision: The Next Big Thing

We are starting to see interesting opportunities in the virtualization of storage -- each application no longer needs its own dedicated storage space, and rapid provisioning of storage between applications in light of new demand is possible. It has a huge impact in terms of the complexity of provisioning the plumbing for a financial institution such as ours.

The other area is developments in chip technology. We can do more calculations than we ever would have dreamed of a couple of years ago, and that allows us to better analyze risk inside portfolios and better understand more- complicated products.

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