Tag Archives: MSFTA

FINRA Proposal to Require Margin on TBA MBS Trades…From Fin Ops Report

For those of you living the dream of MSFTA papering (not re-papering, but papering) and collateralization of TBA trades…we draw your attention to the following article from Chris Kentouris at FinOps Report FINRA: Even Tougher Margining Rules In short, the article discusses current events surrounding a January 2014 Regulatory Notice from FINRA seeking comments on … Continue Reading

Derivatives Update: Dodd-Frank Protocol 2.0 Now Open & Update on Treasury Market Practices Group Forward MBS Recommendation

A few updates of note: 1) Dodd-Frank Protocol 2.0 Open – As of March 22nd, Dodd-Frank Protocol 2.0 is open for adherence.  More information is available here. 2) Further Guidance Issued by TMPG on Initiative to Margin Forward Agency MBS – On March 27th, the Treasury Market Practices Group of the New York Fed issued additional … Continue Reading

The Coming Documentation and Collateralization of TBAs and Delayed Delivery MBS Trades? Behold the MSFTA

In mid-November, the Treasury Market Practices Group (“TMPG”) of the New York Fed recommended that forward-settling agency mortgage-backed securities (MBS) be margined in order to prudently manage counterparty risks.  The TMPG has encouraged market participants to COMPLETE the implementation process by EARLY JUNE 2013. The TMPG collateralization recommendation was issued as part of broader set of best … Continue Reading
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