MBSD netting and settlement services are intended for MBS trading participants that meet FICC’s membership requirements, including brokers, dealers, banks, government securities issuers, mortgage originators, and investment companies.
Each MBSD applicant is required to execute an agreement binding it to MBSD’s rules and procedures. In addition, the Capped Liquidity Facility (CCLF) ensures that FICC has enough liquidity in place in the event of a default of a major firm. Applicants are evaluated on the following membership criteria:
- Capital adequacy
- Operational soundness
- Financial resources