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Invesco to use JP Morgan Chase's TradeStarr to reduce op risk

Invesco Asset Management – the UK fund arm of Amvescap, which has about $400 billion in funds under management – is to use JP Morgan Chase’s trade settlement tracking and relative ranking (TradeStarr) service to statistically rank the settlement efficiency of broker-dealers.

TradeStarr is a Web-based application that measures, analyses and ranks broker-dealers’ trade settlement efficiency across markets to help fund management companies reduce operational risks and exception processing costs.

“JP Morgan Chase’s TradeStarr enhances Invesco’s ability to assess and improve a specific broker-dealer’s settlement performance, while identifying risk trends and cost patterns that if not corrected could adversely impact performance returns,” said John Phinney, a senior information products executive in JP Morgan Chase’s investor services group.

Invesco’s head of investment administration, Jon Thompson, said TradeStarr was a cost-effective means to review the firm’s post execution broker relationships. “With an enhanced decision-making process, we can alleviate operational risk due to trade failure – a capability of utmost importance given today’s market volatility,” Thompson added.

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