JPMorgan takes structured products to wider audience

The bulge-bracket bank is setting up a team to upgrade its retail structured products and equity derivatives platform in Asia ex-Japan.
JPMorgan is revamping its retail structured products and equity derivatives platform with the creation of a new group to be headed by Paul Goodman, a managing director poached from Deutsche Asset Management.

GoodmanÆs team will be responsible for upgrading JPMorganÆs existing platform for the retail structured products and equity derivatives group, from processes to technology and operations, and to help roll that platform out to new markets in Asia ex-Japan.

Before the move to JPMorgan, Goodman was head of the regional product strategy group for Asia and the Middle East at Deutsche Asset Management. He started his career as a lawyer at Allen & Overy, an English law firm with a market-leading reputation for derivatives-related advice. Those skills will be valuable in his new position.

"Equity derivatives is not a league table business, but Asia's equity derivatives market has doubled in the past three to four years and may expand at least 80% this year," says Patrick Moisy, managing director and head of equity derivatives for Asia-Pacific. ôAt the same time, the market is opening and we're coming up against a lot of new regulatory issues and legal and compliance questions."

Since setting up in 2000, JPMorgan's equity derivatives business has made the bulk of its revenues in the same markets as every other bank in the game: Korea, Taiwan and Hong Kong, as well as from creating products distributed to rich individuals through private banks. That isnÆt about to change overnight, but Moisy says the tide may have started to turn.

In India, Thailand, Malaysia and, of course, China, demand for structured products is on the up and up, and Moisy, who has recently relocated from Tokyo to Hong Kong, stresses that these markets will be an important part of his teamÆs business model.

Goodman will head a seven-strong group that will be staffed with a combination of lawyers, operations staff and technology specialists, comprising new hires and internal transfers. He will report to William Lee, managing director and head of equity derivatives Asia ex-Japan.
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