LONDON (HedgeWorld.com)–Swaps transactions are the centerpiece of JP Morgan’s new prime brokerage service called MasterSwap.

MasterSwap was designed to be a synthetic prime brokerage, meaning JP Morgan is offering swaps transactions to hedge fund managers in a prime brokerage environment.

The offering allows hedge funds to further diversify their prime brokerage providers, while creating an easier and more accessible way to trade swaps, said Neil Taylor, head of MasterSwap for JP Morgan. It’s a derivatives product with the look and feel of prime brokerage, Mr. Taylor said.

In addition, MasterSwap allows JP Morgan a means to expand in prime brokerage, where it has little presence and make use of its experience with derivatives, he said. The offering should fare well when compared to swaps services currently being offered to hedge fund managers, he added.

JP Morgan is a unit of JP Morgan Chase & Co., New York.

PBarr@HedgeWorld.com