FINRA increases transparency in TBA market for agency pass-through mortgage-backed securities
The Financial Industry Regulatory Authority (FINRA) has increased transparency in the so-called “To-Be-Announced” (TBA) market for agency pass-through mortgage-backed securities.
This market represents more than USD270bn traded on an average daily basis in 8,400 trades.
Through the Trade Reporting and Compliance Engine (TRACE), FINRA has begun disseminating TBA transaction information, including the CUSIP, time of transaction, price, size and other related information.
In addition to the TBA market, the SEC has approved a FINRA proposal to publicly disseminate transaction information in agency pass-through mortgage-backed securities traded “specified.” This market represents approximately USD19bn traded on an average daily basis in 3,000 trades. FINRA will announce the effective date of this proposal in a forthcoming regulatory notice.
Together, the market for agency pass-through mortgage-backed securities traded TBA and specified represent more than 93 per cent of par value traded in all asset- and mortgage-backed securities.
FINRA continues to study collateralised mortgage obligations and asset-backed securities, which together represents seven per cent of par value traded in all asset- and mortgage-backed securities.
“As we look to increase transparency in collateralised mortgage obligations and asset-backed securities, we will seek an approach that takes into account their complex nature and different market dynamics,” says FINRA vice president Ola Persson.
- Special Reports
- By Location
- Asian Hedge Funds
- BVI Hedge Fund Services
- Bermuda Hedge Fund Services
- Canada Hedge Fund Services
- Cayman Hedge Fund Services
- Channel Islands Stock Exchange
- Future of offshore funds
- Gibraltar Hedge Fund Services
- Guernsey Hedge Fund Services
- Hedge Funds in Germany
- Hong Kong Hedge Fund Services
- Ireland Hedge Fund Services
- Isle of Man Hedge Fund Services
- Jersey Hedge Fund Services
- Jersey Private Equity Services
- Latin American Hedge Funds
- London Hedge Fund Services
- Luxembourg Hedge Fund Services
- Luxembourg Private Equity Services
- Malta Hedge Fund Services
- Middle East Hedge Fund Services
- Singapore Hedge Fund Services
- South African Hedge Fund Services
- Spanish Hedge Funds 2008
- Switzerland Hedge Funds
- US East Coast Hedge Fund Services
- US Hedge Fund Services
- By Subject
Latest Special Report
- By Location