Repo on Execute: unlocking liquidity with innovations in market structure

J.P. Morgan experts explore how Execute is driving the digital transformation of the repo market, reshaping how liquidity is accessed, managed and scaled, creating a new standard for the industry

The repo market, long considered the ‘plumbing’ of financial markets, plays a crucial role in maintaining liquidity, ensuring stability and facilitating the efficient transfer of collateral. However, in recent years, this market has been undergoing a profound digital transformation. With the increasing demand for speed, transparency and efficiency, traditional manual processes are no longer sufficient to meet the needs of modern market participants. J.P. Morgan is at the forefront of this change, leading the digital shift in repo trading with its Execute platform.

Experts from J.P. Morgan’s trading, sales and digital markets teams explain how Execute is more than just a tool for digitising repo – it is a platform that is fundamentally transforming the way liquidity is accessed, managed and scaled, creating a new standard for the industry.

A new era of repo trading

Historically, the repo market has been a space in which manual processes dominated. Trading desks often relied on voice brokers and handwritten records, which created inefficiencies, slow execution times and a lack of real-time transparency. But the landscape is changing. Automation, a trend seen across various financial markets, is now taking root in repo trading, bringing new levels of speed and precision.

Kirsten Rastrick, J.P. Morgan

“The repo market is probably one of the last frontiers for automation,” says Kirsten Rastrick, global head of fixed income financing sales at J.P. Morgan. “Because of the bespoke and customised nature of financing transactions, automation was long deprioritised – but that is changing rapidly, starting with the most liquid products, such as government bonds.”

The transition to automated systems in repo is being driven by several factors, including regulatory pressures, market demand for greater efficiency, and the need for real-time data to manage balance sheets, capital and liquidity.

Eddie Wen, global head of digital markets at J.P. Morgan, highlights that electronification in repo has accelerated dramatically over the past few years. “Initially, progress was slow but, after the Covid-19 pandemic, the rate of change picked up. Today, upwards of 40% of our transaction tickets are electronic – and we see that percentage rising steadily.”

The shift to electronic trading has made it possible for market participants to access liquidity faster, manage risk more effectively and make more informed decisions in real time.

Building an integrated, client-first platform

In the early stages of digitising the repo market, many financial institutions relied on third-party platforms to execute trades. However, J.P. Morgan recognised that the highly customisable nature of repo transactions meant clients needed more than just a generic execution tool. They needed a platform that was tailored to their specific needs and could handle the complexities of financing markets in an efficient and scalable manner.

Eddie Wen, J.P. Morgan

Rather than relying solely on third-party venues, J.P. Morgan made a strategic decision to build Execute – a single-dealer platform designed to meet the unique demands of the repo market. “We realised that the customised nature of repo meant clients needed more than just basic execution,” says Wen. “They needed tools that could handle hundreds, even thousands, of line items quickly and accurately.”

Execute was built with several core innovations that work together to create a holistic and efficient trading experience. One of the key features of the platform is its ability to handle large volumes of data. Clients can upload large spreadsheets or free-form lists, and natural language processing technology automatically parses the trade details, allowing for immediate execution. This eliminates the need for manual intervention and significantly speeds up the execution process.

Live inventory axes – bonds J.P. Morgan wants to lend or borrow – are electronically updated in real time, which removes the need for clients to manually share spreadsheets. Clients also have access to a Live Position Blotter, where they can view their outstanding and maturing trades across all asset classes. This tool supports better liquidity management, helping clients keep track of their positions and assess their risk exposure.

Another significant innovation on the Execute platform is the use of auto‑pricing technology. Trades that meet preset criteria are automatically priced and responded to within seconds, without the need for manual intervention. This speeds up the process, reduces the risk of human error and ensures clients get the best possible pricing in real time.

“We wanted to create a platform that would not only make trading more efficient, but would also provide clients with the tools they need to manage risk and liquidity more effectively,” Rastrick explains. “Our global salesforce used the tools first. They were the pilot users. Only once the sales team deemed the tools acceptable did we roll them out to clients – and the response has been fantastic.”

Trading desk transformation

Maheer Trivedi, J.P. Morgan

From the perspective of the trading desk, the impact of the Execute platform has been profound. Maheer Trivedi, global head of fixed income financing trading at J.P. Morgan, explains how the platform is transforming day-to-day execution. “It’s all about speed of execution and transparency,” he says. “Before, traders had to manually enter lists, and price and communicate them manually – a very slow process. Now, it’s automated. We can price sharper, manage liquidity and capital more effectively, and ultimately deliver better outcomes for our clients.”

Real-time visibility into key metrics, such as balance sheet, capital, risk-weighted assets and liquidity, has been a crucial benefit of the platform. “Execute allows us to monitor these metrics much faster and more accurately,” Trivedi explains. “Without automation, you’re always playing catch-up. With Execute, decisions are made based on live data, which is vital in today’s fast-paced market.”

By automating key processes and integrating real-time data into the trading process, J.P. Morgan has given its trading desks the ability to make faster, more informed decisions. This results in better pricing, more effective liquidity management and improved outcomes for clients.

Lifecycle management and tri-party repo

While automation of pricing and execution has been a key focus of the Execute platform, J.P. Morgan is also investing heavily in the automation of lifecycle events – a critical component of improving operational scalability across businesses with intensive workflows.

In repo trading, trades often involve midlife events such as re-rates, substitutions and closeouts. The ability to manage these changes efficiently is critical for maintaining operational efficiency and ensuring smooth settlement.

J.P. Morgan plans to launch full tri-party and general collateral (GC) trading automation on Execute later this year. Tri-party and GC trading often involve complex allocation workflows that can be time-consuming and prone to error when handled manually. By automating these workflows, J.P. Morgan aims to save significant time for sales, middle-office and trading teams, while also reducing daylight overdraft costs for clients.

Matthew Franklin-Lyons, J.P. Morgan

As Matthew Franklin-Lyons, global head of rates and fixed income financing trading, explains: “Despite the unique challenges posed by the repo market, technology and automation is a key driver of our ability to create operational efficiency and scale across businesses – even, and especially, those with intensive workflows such as tri-party and GC trading.”

“Automating these workflows will not only save time but also accelerate settlement timelines,” Rastrick says. “This is a major focus for us, as we want to improve efficiency and reduce operational risk.”

Trivedi adds: “It’s all about scalability. Once we automate these flows, we’ll be able to serve clients more efficiently and expand the platform’s scope to include more asset classes.”

Credit repo, click-to-trade, and beyond

As Trivedi highlights, scalability is critical in enabling the Execute platform to evolve and handle increasingly sophisticated asset classes. One area of focus is credit repo, which involves trading corporate bonds and emerging market bonds. “These types of bonds are a big focus for us,” Trivedi says. “They often have special value, and automation around axe generation and matching will be a huge differentiator for clients.”

In the near future, Execute clients will also be able to execute trades directly from the digital axes screen using a click-to-trade feature. This will further streamline the trading process, allowing for even faster execution across a broader set of instruments.

“Automation feeds on itself,” Wen explains. “The more clients engage electronically, the more data we generate, which drives better pricing, more liquidity, and more client activity. It’s a virtuous cycle.”

A new standard for repo trading

Ultimately, the goal of J.P. Morgan’s Execute platform is not simply to replicate old processes electronically, but to completely reimagine how repo markets operate. By leveraging cutting-edge technology and rethinking the way repo trades are executed, J.P. Morgan is setting a new standard for the industry.

“Electronification allows us to scale the business more efficiently,” says Wen. “But it’s also about improving service consistency. Even in volatile markets, clients can expect the same level of service and pricing quality – which builds loyalty and deepens relationships.”

Rastrick concludes: “The repo market is growing – more participants, more regulation, more complexity. Our clients are hungry for tools that give them transparency, control and efficiency. Execute delivers that.”

As repo trading continues to evolve, J.P. Morgan’s Execute platform is setting the benchmark – unlocking liquidity, streamlining workflows and creating a smarter, faster market structure for the future.

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J.P. Morgan Markets | Execute

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