Research Update: Jump Financial LLC Outlook Revised To Stable From Negative On Strengthened Capitalization; 'BB-' Ratings Affirmed

Jump Financial LLC has grown capital from its retention of earnings, and it has implemented its enhanced value-at-risk (VaR) framework, which now covers 99% of its trading exposure. As a result, we now expect the firm to maintain risk-adjusted capital (RAC) commensurate with the rating, including a RAC ratio above 10%. We revised the outlook to stable from negative and affirmed our 'BB-' long-term issuer credit and senior secured debt ratings on Jump. The stable outlook is based on our expectation that Jump will maintain its good operating performance, a RAC ratio above 10%, and supportive funding and liquidity. It's also based on our expectation that it will prudently manage the continued expansion of its trading operations, risk, and balance

...To From Issuer Credit Rating ##-/Stable/-- ##-/Negative/-- SACP ## ## Anchor ###- ###- Economic risk 4 4 Industry risk 3 3 Business position Moderate Moderate Capital and earnings Strong Strong Risk position Moderate Moderate Funding and liquidity Adequate and moderate Adequate and moderate Comparable ratings analysis 0 0 Support 0 0 ALAC support 0 0 GRE support 0 0 Group support 0 0 Sovereign support 0 0 Additional factors -1 -1...

Research Update