Home | Business News | Browse by Publication | I | Investment Weekly News

Simplified Post-Trade Process Recommended for Mortgage-Backed Securities Trading.

Publication: Investment Weekly News
Publication Date: 23-MAY-09 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
The Depository Trust & Clearing Corporation (DTCC) is recommending the introduction of daily trade netting for mortgage-backed securities transactions to further expand its planned central counterparty services, cut the high cost of processing these trades and bring greater risk protection to this multi-trillion-dollar market.

In a white paper recently published by DTCC's Fixed Income Clearing Corporation (FICC) subsidiary, the company says that netting all TBA (To Be Announced) mortgage-backed security trades daily--and then having FICC step in as the counterparty to each net position--would not only reduce costs and risk but effectively retire the current clearing model which has governed how mortgage-backed securities trade have been processed for the past 30 years.

"The idea is to streamline the somewhat complex current ‘balance order' netting process,"...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!



More articles from Investment Weekly News
MSCI Inc. to Present at the UBS Global Financial Services Conference.(..., May 23, 2009
K-Sea Transportation Partners L.P. Announces Operating Results for Thi..., May 23, 2009
Unica Announces Financial Results for Second Quarter Fiscal 2009.(Fina..., May 23, 2009
Forrester Research Reports First-Quarter Financial Results.(Financial ..., May 23, 2009
First Opportunity Fund, Inc. Announces Proposed Restructuring of Advis..., May 23, 2009

Looking for additional articles?
Search our database of over 3 million articles.

Looking for more in-depth information on this industry?
Search our complete database of Industry & Market reports by text, subject, publication name or publication date.

About Goliath
Whether you're looking for sales prospects, competitive information, company analysis or best practices in managing your organization, Goliath can help you meet your business needs.

Our extensive business information databases empower business professionals with both the breadth and depth of credible, authoritative information they need to support their business goals. Whether it be strategic planning, sales prospecting, company research or defining management best practices - Goliath is your leading source for accurate information.