NEW YORK - J.P. Morgan & Co. and three other companies announced plans to establish an independent company, Cygnifi, to provide information and advice to participants in the global derivatives market.
Cygnifi's other investors are Sybase Inc., a data base software company; NumeriX Corp., a provider of pricing and analytical tools for derivatives users; and Bridge Information Systems, a distributor of financial news and a provider of network services. The group plans to invest $20 million in Cygnifi before making it an independent company at the end of March.
Cygnifi plans to offer risk-related services over the Internet to chief financial officers, risk managers, and information technology professionals. It plans to provide them with credit risk applications, independent valuations, portfolio stress testing, and counterparty exposure simulations, among other services.
Although Cygnifi will operate as an independent company, its top management will come from J.P. Morgan, the nation's fifth-largest bank holding company. Jay Helvey, former vice chairman of the bank's risk committee and global head of derivative counterparty risk, will become chairman and chief executive. Vlad Torgovnik, J.P. Morgan's former head of derivatives information technology, will serve as president and chief operating officer.
"By capitalizing on recent advances in technology, we will be able to improve control and transparency for derivatives users and offer a range of high-end risk management services to clients," Mr. Helvey said.