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…

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By | 2019-09-26T17:49:24-04:00 September 25th, 2019|Alphacution Feed|

About the Author:

Paul Rowady is the Director of Research for Alphacution Research Conservatory, a 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. Contact:; Follow: @alphacution.