Mortgage-Backed Securities Division

FICC's Mortgage-Backed Securities Division (MBSD) is the sole provider of automated post-trade infrastructure for mortgage-backed securities issued by U.S. government agencies, reducing cost and risk for every participant in this specialized market.
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Mortgage-Backed Securities Division

Central Clearing For Agency MBS

FICC’s MBSD serves broker-dealers, banks and institutions that trade agency mortgage-backed securities, including those issued by Ginnie Mae, Fannie Mae and Freddie Mac. Private-label MBS are outside MBSD's scope. 

Mortgage-backed securities are bundles of similar mortgages sold to investors in slices. When clearing members submit trades, MBSD automatically matches them and confirms. Acting as a central counterparty (CCP), MBSD guarantees settlement, stepping in if either party defaults, largely eliminating counterparty risk for its members, regardless of what happens on the other side of a transaction. MBSD also supports the TBA (To-Be-Announced) forward market, with netting occurring four times a month. 
 
Anyone active in this market relies on MBSD as the central post-trade infrastructure.

  • Trillion

    MBSD: Total $ Value in Net (2025)

  • Trillion

    MBS: Par Value Netting Destined

As of March 2026

Key Features & Benefits

The Unique Mortgage Market

MBS and Treasury transactions differ in timing and structure. MBS trades often settle up to 90 days after the trade date and are typically done on a TBA basis, with specific pools assigned 48 hours before settlement.

MBSD’s EPN Service

MBSD’s real-time Electronic Pool Notification (EPN) service reduces potential failures that might result from incomplete or inaccurate information. EPN also reduces the time and cost involved in settlement.

Managing MBS Risk

The complexity of MBS products and the length of the settlement process increase the risk that one of the parties to a trade may default. In response, FICC continually assesses and updates collateral requirements for participating members.

Explore Our Services

FICC’s Government Securities Division (GSD) automates trade comparison, netting and settlement, improving efficiency and risk management in the U.S. Treasury market. MBSD operates as a central counterparty (CCP) and guarantees the settlement of all matched trades if one of the parties to the trade defaults.