[Cited] JPMorgan Chase: Too Big To Fail May Be Just Big Enough To Succeed


NaN Quantitavity - Quant Trading, Statistical Learning, Coding and Brainstorming

http://seekingalpha.com/article/1085631-jpmorgan-chase-too-big-to-fail-may-be-just-big-enough-to-succeed?source=feed

“JPM is #1 in Global Investment Banking fees. It is #1 in Fixed Income Markets income share. It is one of the biggest derivatives traders. One might at first think that the new rules for FinReg that are set to be implemented in 2013 would hurt JPM more than others. However, the opposite may be true. There are two derivatives laws that are particularly important.”

“The first law would require that most derivatives be traded on open electronic platforms, with prices visible to all participants before deals are done. This would over time lead to much lower prices for derivatives. It would mean lower prices (margins) for JPM in this area. However, the big traders say that large transactions if done openly would disrupt the markets. They are lobbying for exemptions. The big traders such as JPM will be the ones to get these exemptions. They are the ones…

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