The Fixed Income Clearing Corporation (FICC), a subsidiary of The Depository Trust & Clearing Corporation (DTCC), is pleased to announce the planned introduction of three important new services to the mortgage-backed securities (MBS) marketplace - Specified Pool Trade Matching via RTTM, EPN Pool Substitutions and MBS CCP Pool Netting with Guaranteed Settlement. Because of the scope of these efforts, for both FICC and its members, these new services will be introduced in successive phases.

Today, FICC published an industry paper entitled, “A Central Counterparty for Mortgage-Backed Securities: Paving the Way"  describing plans to enhance risk management and advance straight through processing for fixed income securities through the implementation of the Central Counterparty business model for MBS.  The plan establishes implementation phases and leverages processes in place for the Government Securities Division of FICC today.

The industry paper may be obtained from our website by accessing: http://www.ficc.com/commondocs/ccp.mbs.industry.paper.pdf.

In the next few weeks, FICC will be forming a Steering Committee to provide leadership and guidance in establishing key processes and plans. We look forward to member feedback. Please contact me at 212-855-7612 or stysk@dtcc.com or Dennis Paganucci at 212-855-7626 or dpaganucci@dtcc.com with any questions or comments.

Susan Tysk

Managing Director