JP Morgan warns on swaps clearing

Bank says client clearing returns are "incompatible" with current capital rules

JP Morgan: clearing does not pay

Client clearing for over-the-counter derivatives is uneconomic under current capital requirements and the revenue generated by the business will have to increase "to a multiple of its current level" if banks are to stay in the game, JP Morgan has warned.

In its investor day presentation on February 24, the US bank said "current market economics are incompatible with capital rules in their current form for many of the leading clearing providers".

The comments came as JP Morgan revealed it will

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here