Inside J.P. Morgan’s structured products engine

J.P. Morgan’s structured products business is evolving rapidly as volatility, cross-asset demand and technology reshape the global investment landscape.

Our strength lies in combining trading and structuring capabilities across asset classes - Paolo Finardi

Across Europe, the US and Asia, the bank is positioning itself as a central player by combining its scale as a hedge provider, sophisticated structuring expertise and investment in digital platforms such as Vida. According to Paolo Finardi, Emea head of equity solutions and SIDM sales, Gurps Kharaud, global head of equities digital markets and Mohamed Hemissi, Emea head of payoff structuring, the business is increasingly defined not only by pricing and risk management, but also by technology, automation and data.

Finardi emphasises the franchise’s long-standing strength in liquidity provision and hedging. “J.P. Morgan has historically been very strong as a hedging provider," he says. "We are one of the largest investment banks providing liquidity to a broad client base.” He adds that this scale, combined with exposure to sophisticated institutional investors, keeps the bank “close to the frontier of innovation across instruments”. That institutional expertise increasingly translates into retail and wealth channels, giving J.P. Morgan a broad competitive edge.

Hemissi highlights the firm’s strategic role in connecting different layers of the structured products ecosystem. “J.P. Morgan is positioned at the heart of this transition,” he explains, referring to the growing integration of retail flows with institutional hedging demand. As hedge funds and asset managers increasingly absorb retail structured product risk, the bank facilitates efficient transfer between investors, distributors and professional counterparties.

This central position enhances pricing efficiency, narrows spreads and improves end-investor outcomes, noted Hemissi.

Towards cross-asset

The structured products market itself has become significantly more diversified. Historically dominated by equities, investor appetite has expanded into fixed income, credit, rates and commodities as macroeconomic conditions and higher rates have changed return expectations. Finardi notes, “The retail need has become much more cross asset over the past three years.” While equities remain central, especially for income generation, product demand is now far more balanced across asset classes.

The value in equities is more in income generation than in growth or capital protection - Mohamed Hemissi

This shift is particularly visible in autocallables and income structures, which have evolved beyond pure equity underlyings. “Our strength lies in combining trading and structuring capabilities across asset classes,” Finardi said, adding that this ability to transfer expertise from equities into broader markets is increasingly important as investors seek more flexible solutions.

Hemissi identifies three major growth trends. First, leverage demand is accelerating globally, particularly in the US and Asia Pacific. “There is a global surge in demand for leverage,” he said, with ETFs and volatility-targeting strategies driving innovation. Second, engineered underlyings and customized indices are becoming increasingly important in yield enhancement products. Structured products thrive in non-directional environments, where creative combinations can optimize payouts. Third, “systematic exotics are gaining traction,” Hemissi explains, with rolling structures and systematic implementation transforming product distribution models.

According to Hemissi, these developments reflect a broader institutionalisation of structured products, which are increasingly being used as core portfolio tools rather than niche allocations.

Investor behaviour

Looking into 2025 and 2026, volatility remains a critical driver of product demand, particularly in Europe where structured products are often used for income. According to Finardi, “higher volatility leads to higher potential income”, making elevated macro uncertainty an opportunity for investors seeking stronger coupons.

This relationship between volatility and structured product issuance has been especially clear in recent periods of market stress, where clients have actively monetized uncertainty. However, demand is broadening. Hemissi notes that capital-protected products are returning to prominence, even though equities may not currently be the most efficient underlying for these strategies. “The value in equities is more in income generation than in growth or capital protection,” he says.

Investor behaviour is also evolving. Traditionally yield-oriented investors are increasingly seeking downside protection amid prolonged uncertainty, creating broader demand for mixed payoff structures. This has encouraged wider adoption of capital protection, income generation and diversified portfolio overlays.

Finardi also points to the growing retail adoption of institutional-style strategies, particularly through income-focused ETFs and mutual fund structures. “Innovation often comes from transferring ideas across client segments,” he says, highlighting how wealth and retail investors are increasingly accessing techniques previously concentrated in institutional portfolios.

Vida’s expanding role

Technology is now central to J.P. Morgan’s structured products strategy, particularly as issuance volumes and associated hedging flows continue to grow. Kharaud emphasizes that “scale is the key concept.” As volumes increase, the bank’s infrastructure must efficiently transform structured product exposures into OTC risk while maintaining client service.

We design platforms with a cross-asset mindset, building solutions once and applying them across asset classes - Gurps Kharaud

This operational shift is moving the business away from a focus solely on large bespoke transactions toward broader client access and industrialized workflows. “We are also investing in partial automation, allowing clients to access automated pricing and workflows,” Kharaud said. Even where full automation is not yet possible, scalable digital infrastructure is becoming essential, he added.

J.P. Morgan’s cross-asset platform model is another strategic advantage. Kharaud says, “We design platforms with a cross-asset mindset, building solutions once and applying them across asset classes.” This reduces internal silos, creates consistency for clients and frees traders to focus more directly on risk management.

Vida, the bank’s portfolio solutions platform, is central to this transformation. Kharaud describes Vida as “a cross-asset portfolio solutions platform which supports clients across the full lifecycle.” From structuring and execution to portfolio monitoring and analytics, Vida provides transparency and real-time oversight. During periods of volatility, clients increasingly rely on the platform for rapid decision-making and portfolio management.

The next competitive frontier

Data is becoming an equally important strategic resource. Kharaud highlights the importance of automated feedback loops that use flow and behavioral data to calibrate systems more efficiently. “We are moving away from manual processes,” he says, as systems increasingly identify trends and optimize workflows automatically.

Hemissi adds that data already plays a significant role in structuring decisions. Platform and distributor information helps calibrate pricing, identify product trends and improve client service. However, he notes that Europe still lacks some of the transparency available in US markets, which could further enhance product development.

Artificial intelligence is expected to become a major force across execution, origination and market intelligence. Hemissi sees AI transforming productivity and innovation, stating, “AI is developing quickly and will become essential.” He believes AI will improve execution efficiency, empower buy-side institutions to create more customized strategies and unlock deeper insights from historical pricing and trading data.

Looking ahead, J.P. Morgan expects structured products demand to remain shaped by macroeconomic shifts, volatility and increasing market dispersion. Finardi notes that “autocallables and other income products remain central,” while thematic baskets, bespoke strategies and quantitative investment solutions are also likely to benefit.

Ultimately, J.P. Morgan’s strategy reflects a broader transformation in structured products. Competitive advantage is no longer based solely on pricing and structuring expertise, but increasingly on combining global scale, institutional connectivity, technology infrastructure and data intelligence. As retail, wealth and institutional investing converge, J.P. Morgan is positioning itself not simply as a product manufacturer, but as a long-term architect of scalable, systematic portfolio solutions.

J.P Morgan’s structured products franchise was recognised at the SRP Europe Awards 2026 in London in mid-March as the Best Hedge Provider, Europe. Click the link to view the full list of winners.

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