JP Morgan Chase Buys Trading Cost Analysis Firm

Article excerpt

Byline: Mike Foster

Investment bank JP Morgan Chase has bought US-based transaction cost analysis firm Plexus Group and entered into a contract with UK-based Inalytics to market and customise the research service in Europe.Plexus sets out to analyse all expenses relating to equity transactions, including the costs that result from the movement of share prices during implementation of trades.

The deal with JP Morgan will provide Plexus with extra resources to market its services effectively. To help it secure business in Europe, JP Morgan has nailed down a contract with Rick di Mascio's Inalytics transaction cost analysis firm which will means Inalytics will use the Plexus research base to market and customise a combined service.

Europe, particularly the UK, is seen as a fertile ground for the securing of cost analysis contracts with pension funds and investment managers in the wake the UK government-commissioned Myners report on institutional fund management.

The Myners report requested UK pension funds to develop a greater understanding of transaction costs and several of them including the local authority Merseyside pension fund, ferries group P&O, the government's Environment Agency and London Regional Transport have already hired Inalytics to provide them with a service. …