CCP for the associated net pool settlement obligations. Because this means that all pool
settlements between clearing members will occur versus FICC as CCP, each of the
initial project phases has been carefully constructed to provide clearing members with all
the tools they will require to ensure the integrity of their MBS trade and pool data upon
the execution of netting.
First, the Specified Pool Trade Matching service allows for the appropriate capture of
these transactions within RTTM. This will facilitate aggregating all pools into a single net
position once CCP Pool Netting services are implemented, whether they arise from TBA
net activity, TBA TFTD activity or Specified Pool Trades. Additionally, by incorporating
Specified Pool Trades into RTTM, clearing members will discontinue communicating
pool numbers and original face amounts for these trades via EPN. This is an important
prerequisite to providing CCP Pool Netting in Phase 3, where the integrity of pool data
submitted on EPN allocations will be paramount, as each allocation will have to
correspond to an open TBA obligation in order to be staged for CCP Pool Netting.
Download the White Paper: A Central Counterparty for Mortgage-Backed Securities: Paving the Way