TMPG Revises Agency MBS Fails Charge Trading Practice
The Treasury Market Practices Group (TMPG) revised the agency mortgage-backed securities (MBS) fails charge trading practice by removing the two-day resolution period from the practice recommendation. Consequently, an agency MBS settlement fail will be subject to a charge for each calendar day the fail is outstanding, even if the delivery occurs on either of the first two business days following the contractual settlement date. The TMPG recommends that the revised agency MBS trading practice apply to transactions in agency MBS entered into on or after July 1, 2013, as well as to transactions that were entered into prior to, but remain unsettled as of, July 1, 2013.
TMPG Revises Agency MBS Fails Charge Trading PracticeMarch 1, 2013
Agency Debt and Agency MBS Fails Charge Trading PracticeApril 1, 2013
FAQ: TMPG Fails ChargesApril 1, 2013