The Mortgage-Backed Securities Division (MBSD) is the sole provider of automated post-trade comparison, netting, electronic pool notification, pool comparison, pool netting and pool settlement services to the mortgage-backed securities market thus providing greater efficiency, transparency and risk mitigation to this specialized market.

MBSD is the sole provider of automated post-trade to-be-announced (TBA comparison, TBA netting, electronic pool notification (EPN), pool comparison, pool netting and pool settlement services to the mortgage-backed securities (MBS) market. MBSD provides its specialized services to major market participants active in various Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Fannie Mae (FNMA) MBS programs.

Our Mission

MBSD’s mission is to reduce the costs and risks associated with trading in the MBS market. To accomplish this mission, MBSD provides the following high-quality and value-added services that are driven by the needs of its members and industry participants:

• Providing real-time automated trade confirmation, TBA comparison, TBA netting, EPN, pool comparison, pool netting and pool settlement services;
• Assessing and managing financial risk;
• Evaluating and improving MBS market systems and technologies; and
• Enhancing communication among MBS market participants.

Membership

MBSD offers membership in two categories: (1) Real-Time Clearing Services and (2) Electronic Pool Notification (EPN). EPN membership is required to qualify as a MBSD clearing member. Listed in the menu on the left are the services provided by MBSD. Please click on any one of them for more detailed information.

A New Central Counterparty for Mortgage-Backed Securities Trading

In April 2012, FICC began operation of a new central counterparty (CCP) designed to reduce risk and costs in the $100-trillion-a-year market for U.S. mortgage-backed securities. MBSD’s CCP services for pool netting provide settlement guarantee at the point of comparison for both TBA trades and specified pool trades. The new CCP is the first to be created in U.S. cash markets in more than a quarter of a century.

For more information on FICC’s MBSD, please click on this link to view the Source Book: http://www.dtcc.com/products/documentation/cs/ficc/mbs/sourcebook.pdf