Impending rules on how banks must handle certain transactions is one of the main factors prompting JPMorgan to combine units. Parts of the company handling securities, derivatives and back-end support started functioning as one group on Friday.

"Previously, clearing of securities happened under the bank’s Worldwide Securities Services unit, but the clearing of off-exchange derivatives or swaps that some customers had been doing ahead of Dodd-Frank took place within the investment bank," wrote the Wall Street Journal’s Deal Journal blog

"With the shift, the bank has effectively moved away from being organized by product line toward a platform geared towards certain functions" observed Deal Journal.

"The regulatory environment and our clients are driving this," said Emily Portney, who is leading the new, yet-to-be named unit.

For the full article see "J.P. Morgan Merges Services for Derivatives and Securities" (may require subscription).