Two former JP Morgan executives have launched their own London-based securities finance consultancy, CORE Collateral.

Grant Davies and Tim Harrold have set-up the venture, which offers cash collateral and securities related collateral solutions.

Services include third-party collateral vendor implementation oversight and operational risk assessments.

Providing advice on collateral challenges for asset managers and mid-tier banks is the main function of the start-up.

CORE is also working with multiple industry participants to introduce a new liquidity platform for securities finance. 

Davies ran JP Morgan’s EMEA client relationship/sales team for the bank's collateral management business from 2008-2013.

He then headed up BlackRock’s EMEA client execution business until December last year.

Tim Harrold worked at DataExplorers, now part of Markit, before joining JP Morgan in 2008 and developed the firm's collateral franchise across Europe.

Both have extensive knowledge of securities lending and OTC derivatives. 

“At the heart of CORE Collateral is the belief that by engaging and listening to our customers we will also establish the product gaps in the market,” said a company statement.

“Frequently, these gaps are the result of issues that span across multiple existing infrastructures and hence can be overlooked. 

"Equally, any solution offered by a single existing participant may not be the most appropriate.

"CORE Collateral can help in bringing together market participants in such a way as to ensure these product gaps are filled in the most effective way.”