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Bma Trade Assignment Agreement Template

MBS Master provides a comprehensive, trade matching, netting and settlement solution that interfaces with the Fixed Income Clearing Corporation’s (FICC) / Central Counter Party (CCP) Real-Time Trade Matching System (RTTM).

It increases the efficiency of MBS trade operations and reduces overall risk for sell-side firms, such as: brokers, dealers, banks, government securities issuers and mortgage originators. All activity is validated and matched in real-time.

Key Features:

  • Affirmation/Confirmation: The application auto-submits TBA’s, specified pool trades (SPT’s) and pool allocations/instructs to the FICC’s matching engine as they successfully process into MBS Master where match statuses are automatically reflected on the monitoring screen. Users are provided an intuitive user interface for managing the trade life cycle.
  • Multilateral TBA Netting: The system automatically processes the FICC/CCP reports, which reduce each firms open TBA commitments, thereby mitigating or decreasing the overall money amount that is at risk for any given settlement day.
  • Pool Netting: The system automatically processes FICC/CCP reports and changes the counterparty to “FICC.” With the CCP as the counterparty on all pool instructs counterparty risk becomes minimal. TBA Mortgage Master auto-processes pool substitutions received from FICC/CCP into and out of TBA MM in a pool-turn scenario. 100% automation on valid pool subs!
  • Multifunctional user interface with real time trade status monitoring and reporting features.

TBA Mortgage Master’s support of trade assignments is comprehensive, and then some!

Like other standard application workflows, the user can highlight one or many TBA trades and then auto-generate trade assignments. The application adheres to the 25,000 minimum processing rule.

Once created, there is a massively efficient second step that further mitigates operational risk. The user has the ability to generate one SIFMA Agreement per counterparty that contains many individual assignments. A “grid format” lists out key assignment information for viewing purposes. At any time, users can “double-click” launch / open the physical assignment document, which includes electronic signatures and is 100% complete. The SIFMA Trade Assignment Agreement is our typical client deployment, an industry accepted legal agreement.

In a third step, users can auto-send .pdf agreements via email to all counterparty’s in an ‘ease-of-use’ system workflow.

Users can perform these steps as often as they like, however, by condensing many assignments into one legal agreement offers other efficiencies, as well. Instead of having to instruct on numerous wires users can now have one net money movement per SIFMA’s Assignment Agreement.

The SIFMA Legal Agreement is available for use up until 3:00 PM EST on 72 Hour Day, according to SIFMA rules. After that, clients normally look at having to perform pool allocations across EPN, which brings higher trade costs. Quite often, this 3:00PM deadline forces traders to roll their positions earlier than they might want, and perhaps, at prices that are not considered Best-Execution.

For those scenarios where extra time is needed, TBA Mortgage Master offers the ability to connect, real-time, to TradeWeb Round Robin Functionality. The key here is that this functionality can be tapped until 12PM EST on 48 Hour Day, meaning more opportunity for traders to make money on the roll.

The TradeWeb workflow fits very well into the existing application metaphor; users simply highlight and send off the TBA’s to be offset, and with the TradeWeb Auto-Ex, see offsetting trade executions come back into TBA Mortgage Master, ready for pair-off processing.


Alpha Financial Software has the ability to allow clients to communicate in an automated way when ‘acknowledging’ receipt and acceptance of a new trade assignment. For example, a dealer client could provide our TBA Mortgage Master “Lite” web application to all of their clients, at their cost, for the communication of trade assignment activity.

Electronic communication of client assignments means both firms will have electronically stored trade assignment agreements that can be recalled at any time for future reference. And along with this document is the audit trail of this assignment and whether the dealer(s) accepted or Dk’d the request.

MBS Notification and Settlement Dates

Notification and settlement dates for mortgage-backed securities.

MBS Third Party Transactions

For use in forward transactions where a dealer may agree to accept performance obligations that have been delegated by its counter party to a third party with whom the dealer does not have an original contractual relationship.

Trade Assignment Agreement

An agreement, which may be utilized to assign an outright securities transaction, or the back-leg of a repo transaction. The creation of this form was precipitated by a number of outstanding unsettled transactions in the MBS and government securities markets; assigning a position in an unsettled transaction to another counterparty in the “chain” of unsettled transactions may be one way counterparties can shorten such chain or round robin.

Recommended Security-Level Remittance Reporting Categories for Mortgage-Backed and Asset-Backed Securities

Recommended minimum security-level remittance reporting categories, definitions and file layouts for mortgage-backed and asset-backed securities.


List of firm MPIDs used for FINRA TRACE reporting (Posted May 10, 2012)

MBS Buy-In Procedures (Revised)

Revised recommended procedures for mortgage-backed securities buy-ins.

Retail Structured Products: Principles for Managing the Provider-Distributor Relationship

A joint trade association release of principles that seek to address issues that financial services firms have in practice found helpful to consider when performing the function of either provider or distributor in connection with the process of delivering structured products to retail investors.

Round Robin Contact List

A contact list for buy-side and sell-side mortgage-backed securities operations professionals involved in the resolution of round robin situations. An operations manager, allocations contact, and clearance contact has been provided for each firm.

SIFMA Publishes 15Ga-2 and 17g-10 Sample Provisions for Underwriters, Initial Purchasers, and Placement Agents

These sample provisions related to SEC rules 15Ga-2 and 17g-10 (which becomes effective on June 15th) are the result of discussions by a SIFMA Securitization Group dealer working group on the NRSRO due diligence rules. They are intended to be used by dealers acting as underwriters, initial purchasers and placement agents in drafting provisions dealing with the Rules 15Ga-2 and 17g-10 for their engagement letters with ABS sponsors and depositors, and for the related underwriting, securities purchase and placement agency agreements. These are sample provisions, not forms, and as such should be reviewed by counsel to ensure that they are consistent with the existing agreement language and definitions, and that they reflect the dealer’s individual business determination as to how the identified issues should appropriately be handled. For more information, please contact Chris Killian of SIFMA at 212-313-1126.

Treasury and Agency Security Fails Charge Trading Practices
Find both documents under Fails Charge Trading Practices

Standardized CDO Data File Format

A standardized format for data files used to evaluate the performance of CDO transactions. Recommended for use by trustees on a regular basis as a tool to help improve the efficiency, transparency and usefulness of reporting on CDOs.

See Also

Government Sponsored Enterprises (GSE) Standard Forms and Documentation Library