Netting & Settlement Services

Simplify MBS Settlement with Centralized Netting

Built to support To-Be-Announced (TBA) trading and pool settlement, the Mortgage-Backed Securities Division (MBSD) ’Netting & Settlement Services consolidates trades and aligns allocations into streamlined settlement obligations. MBSD acts as a central counterparty through The Fixed Income Clearing Corporation (FICC), enabling participants to process activity with greater consistency, reduce operational friction and improve visibility across the settlement lifecycle. 

Key Features & Benefits

Consistent Communication Framework

EPN gives participants a common framework for pool notification, helping reduce data discrepancies, improve interoperability, and support more predictable outcomes across the MBS lifecycle.

Lower Operational Risk and Effort

By automating allocation communication, EPN helps minimize errors, reduce delays and limit the need for manual intervention.

Flexible Connectivity to Fit Your Workflow

EPN supports multiple integration options — including messaging, APIs, and a web-based interface — so firms can connect in a way that aligns with their existing infrastructure and operating model.

Broad Market Participation

EPN serves a broad range of agency MBS participants, including dealers, banks, issuers, and institutional investors. The service is also available to firms that are not MBSD clearing members.

Reduced Fails and Improved Capital Use

Lower settlement volumes help decrease the likelihood of settlement fails while reducing gross exposures supports more efficient capital usage.

Flexible Settlement Support

Supports both netted TBA settlement and trade-for-trade processing, allowing participants to align workflows to their business needs.

Lower Counterparty Exposure and Improve Settlement Certainty

MBSD simplifies the detailed allocation and settlement requirements of the MBS market by consolidating obligations, reducing the number of required movements, and centralizing settlement.