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Executive Summary

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.

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