JP Morgan, TT Deal
November 3, 2008
JP Morgan Chase & Co. has entered into a global software licensing and distribution deal with Chicago-based Trading Technologies International (TT). Under the agreement, JP Morgan will make TT's X-Trader order-entry system available to its internal trading desks and futures and options clients.
The deal is not exclusive, noted Tim Geannopulos, EVP of global sales at TT, a supplier of trading systems to the derivatives industry. Similar arrangements are in place with several other banks, including Morgan Stanley, Credit Suisse and UBS.
"What makes this one interesting for us," said Geannopulos, "is that JP Morgan is a huge player globally in the futures and options space" and "has been one of the banks that is relatively unscathed" by the current financial crisis.
As part of the agreement, JP Morgan customers will gain access to other TT solutions, including FIX connectivity and exchange gateways throughout the world. The offerings will be integrated into JP Morgan's Morcom eXtraTrade, a front- to back-office system for derivatives trading. The partnership "enhances our world-class platform with tools and solutions that our clients have come to expect," said Peter Johnson, JP Morgan's co-head of global futures and options.
The bank will leverage TT's fully managed hosting solution, TTNet, to distribute X-Trader. TT says TTNet accelerates access to global futures markets and increases stability through fully redundant data centers in Chicago, New Jersey, London, Frankfurt, Tokyo and Singapore. The company plans to open additional facilities in derivatives exchange hubs.
"JP Morgan's global presence, established relationships within the hedge fund community and dedication to offering best-of-breed technology solutions make them an ideal partner," said TT chief executive Harris Brumfield in a statement.