What Is MBS Novation?

The MBS Novation initiative is the culmination of FICC's effort to develop a full central counterparty (CCP) netting and novation model for its Mortgage-Backed Securities (MBS) trade management services. It expands and extends the services that were rolled out by Pool Netting, which officially launched on April 2, 2012.

Pool Netting introduced the comparison, trade guarantee, netting and CCP settlement of pool allocations submitted in satisfaction of members’ outstanding TBA obligations. MBS Novation will further extend CCP services by novating trades upon comparison, introducing a daily net of TBA trades and establishing FICC as the counterparty for all allocations and settlement.

All MBSD input, output, systems and processes will be impacted and changed, to varying degrees, by this initiative. As a result, new SWIFT-based Interactive Messaging Specifications, Machine Readable Output (“MRO”) file layouts, and reports will be created, as well as any requisite member reference documentation and training materials.

Check back to the MBSD Learning Center periodically for new information regarding this initiative.

 

Click on the topics below to learn more about MBS Novation...


What Is MBS Novation?

The MBS Novation initiative is the culmination of FICC's effort to develop a full central counterparty (CCP) netting and novation model for its Mortgage-Backed Securities (MBS) trade management services. It expands and extends the services that were rolled out by Pool Netting, which officially launched on April 2, 2012.

Pool Netting introduced the comparison, trade guarantee, netting and CCP settlement of pool allocations submitted in satisfaction of members’ outstanding TBA obligations. MBS Novation will further extend CCP services by novating trades upon comparison, introducing a daily net of TBA trades and establishing FICC as the counterparty for all allocations and settlement.

All MBSD input, output, systems and processes will be impacted and changed, to varying degrees, by this initiative. As a result, new SWIFT-based Interactive Messaging Specifications, Machine Readable Output (“MRO”) file layouts, and reports will be created, as well as any requisite member reference documentation and training materials.

Check back to the MBSD Learning Center periodically for new information regarding this initiative.

 

Click on the topics below to learn more about MBS Novation...

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