Click the Resources tab above to view a filter-enabled list of all documents and videos available in the MBSD area.
Explore more areas and topics within the Mortgage-Backed Securities Division:
The following topics comprise an introduction to mortgage-backed securities and MBSD's role in managing them:
The MBSD Services guide explains the major functions and areas of MBSD.
Note that this is not a legally binding document such as the MBSD Clearing rules, the EPN rules, or the fee guide, but is rather intended to help you understand the workings of MBSD.
The contents of this guide include:
| Section | Contents |
| Trade Comparison |
This chapter includes articles about:
|
| TBA Netting | This article explains TBA netting and provides some information about the 72-hour day. |
| TBA Allocation and DNA | This section includes articles covering DNA logic, examples, submission, creation relationship. TAP, and cancel. It also provides explanations for allocation functionality, engine, and validation. |
| Pool Comparison | This section discusses RTTM's roles in pool comparison as well as the required fields for pool submission, the default values for price and final money, and factor updates. |
| Pool Netting | This section of the guide discusses many topics - be sure to scroll through the whole menu on the left to see them all. They cover obligations, substitutions, repricing, instructs, obligations, and more. |
| Delivery vs. Payment | All obligations settle versus FICC on a Delivery vs. Payment (“DVP”) basis over the Fedwire®. Read a brief explanation of DVP, view an example, view a process flow, and learn what happens with net pool obligation fails. |
| FICC Internally Generated Notification of Settlement (NOS) |
This article introduces the NOS process and some of its related data. |
| MBSD Output | This article lists the output types available from MBSD. You can also view the MBSD Reports page and the MRO Messages and Reports list page for more information. |
| MBSD Glossary | View an alphabetical list of all MBSD terms, or use the Search functionality to look up a particular term. |
The MBSD Reports page provides you with explanations of:
- Pool net reports
- RTTM® reports
- Clearing reports, and
- Novation reports.
In addition, the MRO Messages and Formats Page provides you with descriptions of messages and reports, identifying/associated message and report numbers, reporting guides, and format layouts for the full list of MBSD messages and reports.
The Real-Time Trade Matching System (RTTM) for Mortgage-Backed Securities (MBS) is a product of the Fixed Income Clearing Corporation's Mortgage-Backed Securities Division (MBSD). RTTM is a trade-entry/management tool that increases the efficiency of trade operations yet reduces your firm’s overall risk. All activity is validated and matched in real-time. From trade submission to comparison, processing time is reduced to a fraction of what it had taken in the past.
The MBSD RTTM Online Help provides you with specific information regarding the access and use of the MBSD RTTM application.
Electronic Pool Notification (EPN) is the industry standard for agency mortgage-backed securities pool notification. It is a real-time store and forward message switch that provides an electronic communication network for transmitting MBS pool allocation information quickly, efficiently, and reliably.
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.
MBSD Risk Management includes the establishment of FICC as a central counterparty for all member trades at the time of trade comparison, as well as FICC's strict management of member firms' eligibility to participate. MBSD trades and positions are guaranteed at the TBA level.
The MBSD Risk Management section includes information on:
- the CCLF,
- clearing fund management,
- collateral ,
- margining methodology,
- loss allocation,
- membership standards,
- VaR,
...and more.
Cash Settlement is a daily automated process of settling cash credit and debit amounts between members and FICC. Cash Settlement occurs at the aggregate level, not at the account level. Amounts are totaled across all accounts that roll-up to a given aggregate to arrive at the net debit or credit amount.
Learn about Cash Flows and Cash Settlement, including a table of cash settlement items.
Related topics include:
- TAP types
- Mark-to-market, P&I, and TBA-related TAPs
- Factor update adjustment
- Clearance adjustment
- Principal and interest payments
- Broker commissions
- MBSD billing fee
- TMPG charges and financing amounts
- CPR claims
- Miscellaneous amounts