Vendor Says Small Technical Adjustment Helps To Curb Fails in To Be Announced MBS Market
July 1, 2011
Tradeweb claims its Round Robin functionality has curbed trade failures in the to be announced mortgage market to the tune of $166 billion since it was introduced in November. First, the service has reduced the round robin risk; that is, the risk associated with a chain of matched fails that frequently becomes a closed loop. The new technology enables institutional clients to pair-off TBA mortgage pool transactions with dealers, which reduces...