MEDIA RELEASE PR39137
J.P. Morgan Supports Payment-Versus-Payment Settlement for Foreign Exchange Transactions in
Indonesia
HONG KONG, Apr. 19 /PRNewswire-Asia-AsiaNet/ --
J.P. Morgan Treasury Services today announced that it has developed a solution to facilitate a new
currency clearing service for its Indonesian bank clients using Hong Kong's cross-border payment-versus-
payment (PvP) settlement system. By having access to this system, J.P. Morgan's clients are able to better
mitigate foreign exchange settlement risk and increase operational efficiency.
The PvP infrastructure established by Bank Indonesia and the Hong Kong Monetary Authority links the real
time gross settlement (RTGS) systems in both economies to provide simultaneous delivery of Indonesian
Rupiah and U.S. Dollar currencies within the Asia business day. This innovative infrastructure represents a
new clearing standard between these two currencies. J.P. Morgan also provides clearing services using PvP
settlement in Malaysia.
By leveraging J.P. Morgan's global payment network and leading position in U.S. Dollar clearing, financial
institutions also can benefit from optimised liquidity, faster payments and high standards of service delivery.
J.P. Morgan was a key participant in the working group of commercial banks brought together by Bank
Indonesia to identify a solution to mitigate settlement risk for foreign exchange transactions between
Indonesian Rupiahs and U.S. Dollars and to increase efficiency in the inter-bank market for both currencies.
J.P. Morgan was in a unique position to deliver thought leadership and share its experience as a major
provider of clearing services to the banking industry in Malaysia since the inception of the PvP settlement
services in 2006.
"Beyond the role banks normally play in payment clearing and foreign exchange settlement, we are
committed to fostering innovation in the industry and are proud to be part of this initiative led by Bank
Indonesia and supported by the Hong Kong Monetary Authority. Our client banks in Indonesia value our
successful experience with PvP settlement in Malaysia, where we continue to see a high demand for these
services and future developments in this area," said Raof Latiff, managing director and Asia head of Treasury
Services clearing and foreign exchange at J.P. Morgan.
"J.P. Morgan Treasury Services is actively engaged in promoting best practices and supporting initiatives
aiming to reduce risk and enhance efficiency at an industry level. We are pleased to be able to offer a wider
range of cash management services to our clients in Malaysia and Indonesia to meet their most advanced
clearing needs," added Simon Jones, managing director and regional Treasury Services executive - Asia
Pacific at J.P. Morgan.
J.P. Morgan is the world's largest U.S. Dollar clearing and commercial bank. J.P. Morgan Treasury Services
leverages the services and products of the bank's Worldwide Securities Services division, as well as its
Investment Bank, Asset Management and Private Bank lines of business to provide its clients with integrated
banking solutions.
About J.P. Morgan Treasury Services
The Treasury Services business of J.P. Morgan is a top-ranked, full-service provider of innovative payment,
collection, liquidity management, trade finance, commercial card and information solutions to corporations,
financial services institutions, middle market companies, small businesses, governments and municipalities
worldwide. With more than 100,000 clients and services provided in more than 60 countries and 40 U.S.
states, J.P. Morgan Treasury Services is one of the world's largest providers of treasury management services
and a division of JPMorgan Chase Bank, N.A., member FDIC. More information can be found at
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.1 trillion
and operations in more than 60 countries. The firm is a leader in investment banking, financial services for
consumers, small business and commercial banking, financial transaction processing, asset management and
private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of
consumers in the United States and many of the world's most prominent corporate, institutional and
government clients under its J.P. Morgan and Chase brands. In Asia Pacific, J.P. Morgan operates through 26
offices in 15 countries and has developed its wholesale banking franchise during a history of almost 160 years
Media Contact:
Karene Dufour Lo
J.P. Morgan Treasury & Securities Services - Asia Pacific (ex-Australia)
Tel: +852-2800-1924
Email: karene.c.dufourlo@jpmorgan.com
SOURCE: J.P. Morgan
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