Liquidity Management Accounts
Liquidity Management Accounts
Takes the management of operating cash to a new level by providing both immediate access to liquidity throughout the business day and enhanced value for stable balances
How it Works
In the first month, all balances receive an overnight rate.
In the second month, a balance tranche is established based on the lowest positive daily closing balance level of the previous month, and an
enhanced rate is applied to those balances. Balances above that level receive an overnight rate.
Balance tranches are reset each month using the same process.
Additional rate enhancements are applied after three months and six months. These tranches are established based on the lowest daily
closing balance for the previous three months and six months.
Group liquidity accounts.
Group balance smooths out account-level volatility and enhances the value of global balances.
Basel Impact
X
LMA Account
X
LMA Group
X
GLMA Group
X
Benefits
- Automatically provides enhanced value for operating balances
- Can provide higher returns when balances remain over time
- With Group Liquidity Management Account, value is not impacted by individual
account balance volatility - Group Liquidity Management Account includes balances across global locations,
currencies and entities
- Immediate access to liquidity – balances are always available for funding needs
- Intraday use of funds does not impact balance value
- Cash remains in the account, reducing the need to forecast
- Eliminates the time required to analyze and execute short-term
investment strategies
- Complete visibility of accounts and returns through J.P. Morgan ACCESS®
- Offers centralized and/or regional treasury greater visibility into global
balance activity
