Adding J. P. Morgan Securities to Bank-Owned Broker-Dealer Modeling

“The world is changing, and we recognize that a synergistic combination might be in the best interest of shareholders…” – James E. Cayne

Alphacution has modeled the bank-owned broker-dealer operations for the following:

  • Goldman Sachs & Co.
  • Morgan Stanley & Co.
  • Deutsche Bank Securities, Inc.
  • UBS Securities, LLC
  • Credit Suisse Securities (USA), LLC

We now add J. P. Morgan Securities, LLC – formerly known as Bear Stearns & Co…

Here’s a brief summary of what that analysis shows, so far:

Relative to the other five bank-owned broker dealers in our sample to date, J. P Morgan Securities ranks as the largest by total assets, as of year-end 2018:

Relative to the other five bank-owned broker dealers in our sample to date, J. P Morgan Securities also ranks as the largest by a measure of gross cash equities – as in, equity securities owned plus equity securities sold, but not yet purchased – as of year-end 2018:

Relative to the other five bank-owned broker dealers in our sample to date, J. P Morgan Securities ranks as the only member of the sample with a short – or, negative – net cash equities position, as of year-end 2018:

Based on this cursory analysis, these attributes – particularly for a player of its size – demonstrate solid portfolio construction parameters over the 18-year period, and therefore, are fairly impressive.

More soon…


Support the Feed!


Individual Subscription Options



Note: Business credit cards and bank accounts can be used via our PayPal payment portal.


Alphacution is in the intelligence business.

For those of you who are eager to derive greater value from this work and apply that intelligence to your own business interests, Alphacution is offering unaffiliated individual subscription options priced at $275 per year or $25 per month, cancellable at any time. Both of these options include a rebate on purchases of deeper, more substantive reports and case studies.

In other words, the entire value of an individual subscription paid up to the point of purchasing a single report will be deducted from the purchase of that report. (Rebates not to exceed the maximum value of an annual subscription.)

Enterprise subscription packages for individuals affiliated with trading firms and custom content/service engagement options are available upon request at info@alphacution.com.

Now, for those of you who don’t expect to take advantage of the offers outlined above but want to continue to enjoy the insights, intelligence and occassional entertainment that remain openly available on the Feed, I want to make this specific plea:

Free doesn’t mean there are no costs. In fact, in this case, there have been extraordinary costs in the accumulation of experience and sight, meticulous curation and assembly of data, and creative visualization of and storytelling around our findings.

So, if you value quality content – here or anywhere else – then you need to find a way to support that content at some level simply because you want it to continue to exist. Our post, In Support of Digital Content – which was adapted from other notable digital era content developers – makes a more expansive case for this perspective.

Bottom line: Your efforts to support via one-time or recurring contributions will help guard against this content needing to move from the currently preferred audience-driven model (for its level of independence) to a sponsorship-driven model (which can be found on most other industry media outlets).

So, if none of the subscription options suit you, one-time and recurring support contributions can be made at any level here:



Of course, as always: If you value this work, please continue to “like it,” share it, comment on it – or discuss amongst your colleagues – and then send us feedback@alphacution.com.

As our “feedback loop” becomes more vibrant – given input from clients and other members of our network, especially around new questions to be answered – the value of this work will accelerate.

Don’t be shy…


Unsubscribe from prior subscriptions without further obligation, at any time, here:

By | 2019-09-26T17:49:24+00:00 September 25th, 2019|Alphacution Feed|

About the Author:

Paul Rowady is the Director of Research for Alphacution Research Conservatory, the first digitally-oriented research and strategic advisory platform uniquely focused on modeling and benchmarking the impacts of technology on global financial markets and the businesses of trading, asset management and banking. He is a 30-year veteran of the proprietary, quantitative and derivatives trading arenas with specific expertise in strategy research, risk management, and techno-operational development. Contact: feedback@alphacution.com; Follow: @alphacution.