Tradeweb Reaches Benchmark for TBAMBS Trades

center_img Tradeweb Reaches Benchmark for TBA-MBS Trades Touting its unique platform, “”Tradeweb Markets LLC”” has announced that the company recently reached a new benchmark, with more than $1 trillion in mortgage securities risk offset through the use of its trading technology.[IMAGE] Tradeweb credits the company’s new “”round-robin”” functionality of its programs for its success in the to-be announced-mortgage-backed securities (TBA-MBS) market.Introducing the technology only 16 months ago, Tradeweb claims that the platform has “”significantly lowered the number of failed TBA mortgage pool trades by enabling institutional investors to electronically pair-off TBA mortgage pool transactions with dealers”” by replacing manual processing with an efficient solution that addresses “”round-robin”” fails.Tradeweb’s offerings seek to address the updated fails changes initiated by the “”Treasury Market Practices Group (TMPG)””, which took effect on February 1. Alterations to the TMPG’s standards included increased fines of up to 2 percent of the notational volume of failed TBA-MBS trades, and during February and[COLUMN_BREAK]March, the TMPG recorded record “”round-robin”” volumes of $122 billion and $159 billion respectively.In a company statement, Tradeweb noted that a lack of sufficient liquidity in the marketplace since 2009 has severely limited participants’ ability to sell mortgage pools, and Tradeweb cites the prevalence of “”failed deliveries”” that often created a “”chain of matched fails in a closed loop, known as a ’round-robin'”” as the catalyst behind the company’s decision to debut its new technology. Before the launch of its “”round-robin”” functionality, clients were burdened with “”assigning”” trades from dealer to dealer through a manual, time-consuming process.Commenting on the platform, Tradeweb’s client, “”BlackRock””, provided feedback, with managing director and head of rates trading, Colm Murtagh, noting, “”The ability to electronically pair-off TBA trades with dealers has brought significant efficiencies to reducing risk and mitigating the likelihood of failed trades in the mortgage marketplace. We are proud to have collaborated on an innovative solution that is helping address a systemic concern for market participants.””””Tradeweb has a long history of partnering with the industry to deliver innovative trading solutions that improve efficiency and workflow in global markets,”” added Billy Hult, President of Tradeweb. “”The accelerated success of the ’round-robin’ technology clearly demonstrates our leadership in electronic trading and commitment to improving the world’s largest institutional mortgage marketplace.””According to Tradeweb, TBA-MBS represents the majority of all institutional residential mortgage tradinG. Additionally, Tradeweb stated that 2012 monthly trading volumes have exceeded $2 trillion on the electronic multi-dealer-to-consumer platform.last_img

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