"With our expectation that the majority of OTC derivatives will be cleared, this is no longer a competitive advantage, which means that JPMorgan is exposed to losing market share as well as above-average margin compression since they were benefiting from very favorable pricing relative to peers due to strong counterparty strength," the note says.
JPMorgan is slated to report its results on Jan. 15. Analysts on average expect earnings of 63 cents a share for the fourth quarter of 2009 and $3.17 a share in 2010.
Shares of Bank of America were up 1% to $16.76 in recent trades, while Goldman Sachs shares were down 1.2% to $175.49, Morgan Stanley's shares were off 1.6% to $32.38, and JPMorgan's stock slipped 0.7% to $44.45.
--Written by Laurie Kulikowski in New York.