JPMorgan CEO Jamie Dimon shared that a client of the bank sent a $100 million order via mobile in an interview with Yahoo Finance. One of the most respected senior executives in the industry highlights the changes that are coming to institutional FX trading at a time when his company invested $9.5 billion in new technology.
With a little over 80 percent of FX trading being transacted electronically, the share of mobile trading in the institutional space of the FX market is seeing the beginnings of major growth.
JPMorgan spent $600 million on emerging fintech solutions, including partnering with fintech companies
Speaking in front of an audience after the publication of his annual letter to shareholders, Jamie Dimon also jokingly suggested that phones should also have a breathalyzer for alcohol that affects trading decisions.
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The corporate and investment bank chief of JPMorgan, Daniel Pinto, highlighted that throughout 2016, 83 percent of trading was done electronically. During the most volatile days, JPMorgan processed over $200 billion in client orders electronically.
JPMorgan is the world’s largest investment bank with 8.1 percent market share. The company’s revenues from fixed income, currencies and commodities (FICC) are also the highest in the industry with a market share of 12 percent.
Dimon elaborated on technology in his annual shareholder letter: “In 2016, we spent more than $9.5 billion in technology, of which approximately $3 billion is dedicated toward new initiatives. Of that amount, approximately $600 million is spent on emerging fintech solutions – which include building and improving digital and mobile services and partnering with fintech companies.”
“The reasons we invest so much in technology (whether it’s digital, big data or machine learning) are simple: to benefit the customers with better, faster and often cheaper products and services, to reduce errors and to make the firm more efficient,” Dimon explains.
Mobile FX Trading Shifting to Institutions
Institutional FX trading via mobile is picking up in recent years and this is not news. The statement made by JPMorgan’s CEO is however highlighting the speed and significance of this shift. Big ticket traders are moving into mobile and the likelihood that this trend will persist is significant.
Retail brokers were very fast to adopt advanced charting and trading solutions for mobile devices and this trend is inevitably spreading to institutions. The gap that is left wide open can be capitalized on by mobile trading focused companies.