JP Morgan and Nomura become Source shareholders

JP Morgan and Nomura have joined Source as shareholders, bolstering the exchange-traded product (ETP) issuer’s range of investment bank partners and swap providers.

Source says it aims to offer ETPs with reduced counterparty risk and increased liquidity, which the firm believes is enhanced with the latest addition of shareholders.

JP Morgan also becomes a swap provider for the firm's products, while Nomura became a swap counterparty and partner last July.

Source says JP Morgan has "unparalleled" risk management and liquidity provision spanning asset classes, including equity, commodities, credit, foreign exchange and rates.

Source adds Nomura is one of the largest traders and distributors of ETFs across a range of asset classes.

Nomura COO of equities liquid markets Leonie Ryan says: "We see ETFs as a huge growth product in Europe and thus, as being a key cornerstone of our equity strategy."

Source delivers ETPs backed by a range of counterparties, comprising its partners BofA Merrill Lynch, Goldman Sachs, Morgan Stanley, JP Morgan and Nomura.

The issuer also works with its partners to deliver a liquid lending market for its sector products, enabling investors to use the funds to take both long and short positions.