Electronic Pool Notification
- Category: Electronic Pool Notification
The Electronic Pool Notification section explains:
- what electronic pool notification is,
- how to access the systems required to utilize electronic pool notification,
- how to locate and utilize the output and reports from the electronic pool notification process, and
- technical information required to optimize your use of the features, functions and backup of required systems.
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EPN Topics (21)
EPN is intended for all firms that are engaged in the MBS pool allocation and notification process, including broker/dealers, inter-dealer brokers, commercial banks, government sponsored enterprises (GSEs), mortgage originators, insurance companies, investment companies, investment managers/advisors, mutual funds, trust companies, pension funds, international organizations, and organizations that act as principal to the underlying trade and maintain direct FICC accounts. Firms do not have to be members of FICC’s MBS Division clearing services in order to use EPN.
EaSy Pool Topics (31)
Recommended EaSy Pool Resources: MBSD Easy Pool (ESP) User Guide
The topics in the EaSy Pool section of the MBSD Learning Center provide step-by-step instructions about how to use the Electronic Pool Notification (EPN) EaSy Pool (ESP) service. You can submit all original notification (ON), don't know (DK), cancel and correct (CC), and cancel (CX) messages through EaSy Pool. This guide assumes a general knowledge of mortgage-backed securities. This content is intended for information technology professionals, business analysts, and others who are responsible for implementing or operating EaSy Pool.
Introduction to EaSy Pool
EaSy Pool is a messaging service that enables you to communicate with your counterparties. It provides a formatted data-entry and display facility for Electronic Pool Notification (EPN) message entry, message display, reporting, receipt of messages, and administration.
To access EaSy Pool, ensure that you are using EaSy Pool with an existing access coordinator (AC) set up with DTCC or FICC. Verify that you have the correct permissions.
Within the EaSy Pool section you can learn about:
- Accessing EaSy Pool
- How to navigate the EaSy Pool Home page
- Transaction Management
- Report Center
- EaSy Pool Business Administration
EPN Reports (17)
This section includes detailed descriptions of MBS EPN Reports. Each sample report is introduced with a definition table that lists the Purpose, Access, Clearing Fundamentals Cross-Reference, and Timing requirements. Reports can be printed only from the Report Center.
Also included in this section are various MBS code tables (e.g., Agency codes, DK Reason codes, and Trade Type codes).
It is assumed that you have a general knowledge of mortgage-backed securities processing. Please direct all questions regarding this information to the FICC Operations Department.
Pool Substitution Service Topics (16)
FICC's MBS Division provides the Pool Substitution message (or “CC” for Cancel/Correct) to support the simultaneous cancel of previously allocated pools with the notification of substituted pools. This benefit of this message is that it provides EPN members with time-stamped evidence of delivery of a Pool Substitution. Like all EPN message types the processing of the Pool Substitution message is subject to The Securities Industry and Financial Markets Association (SIFMA) guidelines governing good delivery (for example, tolerable variance or number of pools per million, etc.) Members are referred to the Uniform Practices published by SIFMA for detailed information on good delivery guidelines.
The Pool Substitution message provides members with an efficient method of transmitting Pool Substitutions to their allocation counterparties. The Pool Substitution message is structured to create a relationship between both the canceled and substituted pools. Canceled lots or pools are followed by substituted lots or pools of the same value (within variance).
Pool Substitution messages are passed to counterparties on a real time basis through EPN, and standard EPN validations are performed on Pool Substitution messages – that is the message will be validated for data integrity, but not for business terms. Consistent with other business messages, validation of the business terms of the Pool Substitution message is the responsibility of the sending and receiving members.
Submission of pool details in the Pool Substitution message require a system-defined ordering scheme whereby canceled lots are immediately followed by substituted lots.
Benefits Derived From The Pool Substitution Service
This service creates efficiencies in the allocation process:
- By providing a single message to effect cancels and substitutions of allocations, members are able to replace a “two message”, unlinked process and/or replace phone/fax substitutions with one streamlined process;
- Pool Substitution messages passed via EPN provide members with evidence of delivery and receipt of Pool Substitutions and an audit trail via reports for the message. Members have the ability to store these messages and incorporate them into their internal system as they see fit.