By purchasing an I&C Lock, broker/dealers will have the right, but not the obligation, to execute issuance and cancellation transactions in the future at a predetermined rate, J.P. Morgan said.
The I&C Lock contracts are issued and maintained by J.P. Morgan’s DR Execution Desk.
“As broker dealers gain greater control of their costs by moving DR fees from a variable to fixed cost structure, they will have incentive to trade more, which leads to greater liquidity in the marketplace,” said James Proctor, global head of J.P. Morgan’s DR Execution Desk.
More information is available at www.jpmorgan.com/visit/adr.