JP Morgan Chase 2015 Annual Report Download - page 36

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• Operational eciencies. In the Corporate &
Investment Bank, big data is being used
to analyze errors, thereby improving
operational eciencies. In one example, in
our Custody business, big data is helping
identify and explain the breaks and vari-
ances in the calculation of net asset values
of funds, thereby reducing the operational
burden and improving client service.
• Operational intelligence. Our technology
infrastructure creates an enormous
amount of machine data from which we
gain valuable operational intelligence. This
information helps support the stability
and resiliency of our systems – enabling
us to identify little problems before they
become big problems.
• Fraud security and surveillance. Needless to
say, these big data capabilities are being
used to decrease fraud, reduce risk in the
cyber world, and even monitor internal
systems to detect employee fraud and
bad behavior.
Why are you investing in sales and trading, as well as in your Investment Bank, when others
seem to be cutting back?
Trading is an absolutely critical function
in modern society – for investors large and
small and for corporations and governments.
As the world grows, the absolute need for
trading will increase globally as assets under
management, trade, corporate clients and
economies grow. We disclosed on Investor
Day that we continue to make a fair profit in
almost all our trading businesses despite the
higher costs and what is probably a perma-
nent reduction in volumes. While the busi-
ness will always be cyclical, we are convinced
that our clients will continue to need broad
services in all asset classes and that we have
the scale to be profitable through the cycle.
Sales and trading educates the world about
companies, securities and economies. Clients
will always need advice and the ability to
transact. This education also makes it easier
for corporations to sell their securities so
they can invest and grow. Much of the invest-
ment we are making in sales and trading is
in technology, both to adjust to new regula-
tions and to make access to trading faster,
cheaper and safer than it has been in the
past. Across electronic trading, we have seen
a doubling of users and significant volume
increases of 175% across products in just the
last year. Below are a few examples:
Foreign exchange (FX). We continue to make
significant investments in FX e-trading and
our single-dealer platform. More than 95%
of our FX spot transactions are now done
electronically as the market has increasingly
shifted to electronic execution over the years.
We were also first to deliver FX trading on
mobile devices through our award-winning
eXecute application on the J.P. Morgan
Markets platform. Our continued investment
in the FX business, in which we process an
average of nearly 500,000 trades each day,
has propelled us to be a leader in the market.
Equities. In the last five years, on the back
of our investments in both technology
and people, our U.S. electronic cash equity
market share has nearly quadrupled. We
have also witnessed an increased straight-
through processing rate – going from 70%
two years ago to 97% today.
Prime Brokerage. Our Prime Brokerage plat-
form, which was once a predominantly U.S.
operation, is now a top-tier global business
that continues to grow clients and balances.
Our international and DMA (direct market
access) electronic footprint has expanded
rapidly since 2012. Financing balances
are at all-time highs, with international
balances up more than 60% and synthetic
balances up more than 350%, simultane-
ously reducing balance sheet consumption
and enhancing returns.
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