Treasury Markets Practice Group (TMPG) recently published meeting minutes and materials from its February 9th, 2021 meeting. A noteworthy highlight of this publication discusses MBS margining:
The TMPG secretariat then reviewed summary statistics related to its agency MBS margining recommendation. The TMPG secretariat noted that over the three-month period ended December 15, 2020, TMPG member firms had, on average, executed margining agreements with about 72 percent of their counterparties. These agreements covered approximately 86 percent of notional trading volume of forward-settling MBS transactions (excluding those centrally cleared), and margin exchange was operationalized for roughly 98 percent of these executed agreements. Members were informed that the statistics for each period were roughly in line with recent averages, and small changes can b mostly attributed to changes in the composition of respondents.
FINRA Rule 4210 is definitely coming and the compliance deadline is October 26th, 2021. The margin tsunami has already hit and many firms are struggling to deal with the continued waves of margin calls coming at them. MarginCalculator from Matrix Applications can simplify the margin process and help you validate (or dispute) margin calls using industry-standard prices (provided by our partners at ICE Data Services).
We run the calculator and produce counterparty exposures. The client clicks to email margin calls with supporting trade details and we produce a set up of reports for daily review. It's that simple.
The dedicated team at Matrix Applications and MarginCalculator will help your firm work smarter. Our effective on-site and remote training offerings, along with informative documentation, makes this compliance process simple. We know software just as well as the financial markets. And we are here to help.
