has tapped into JP Morgan Chase's
new issue pipeline for its retail brokerage customers. The Boston Behemoth said Tuesday that the partnership will provide its customers access to IPOs and fixed income offerings from the Wall Street bank and underwriter.
JPMorgan will also offer secondary share sales and certain negotiated municipal bond offerings as part of the strategic alliance.
The agreement opens up distribution to more than 10.7 million brokerage account holders at Fidelity. The Boston-based fund firm also works with more than 3,000 registered investment advisors and more than 350 broker-dealer firms with 65,000 individual brokers through National Financial clearing business.
Until now, JPMorgan has distributed primarily the equity and fixed income offerings only through institutions, hedge funds clients of its JPMorgan Private Bank.
"This alliance gives JPMorgan and its clients access to Fidelity's extensive distribution network," said Steve Black, co-CEO of JPMorgan's Investment Bank. "We are now able to offer our clients the opportunity to reach a far broader set of investors. Becoming Fidelity's primary provider of new issue equity and debt products is a key competitive advantage for JPMorgan."
Ellyn A. McColgan, president, Fidelity Brokerage Company, said that the alliance is part of an effort to make "significant investments" in its brokerage business and to strengthen its overall offering.
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