Electronic TBA MBS Trading Platform for Lenders
Trade Auction Manager (TAM) enables the bidding and exchange of TBA mortgage-backed securities used by lenders to hedge their open mortgage pipelines. The browser-based software module is accessed within MCTlive! – MCT’s comprehensive capital markets platform. TAM digitizes the historically phone-based process of buying and selling TBAs. This allows lenders to collect and analyze more competitive bids, leading to enhanced execution.
Watch the TAM Webinar Recording
Watch MCT’s Industry Webinar recording or download the webinar slidedeck to discover how TAM is revolutionizing TBA trading.
Our webinar recording from June 6th, 2019 discusses:
- How TAM is changing the TBA trading process
- Benefits of TAM on efficiency and profitability
- How to execute a digital TBA trade using TAM
- Which broker-dealers and integrations are currently available
- Future innovations in TBA trading
Please contact us for more information on Trade Auction Manager.
Trade Auction Manager: How to Execute a Digital TBA Trade
Lenders engage in pipeline hedging to protect their open mortgage applications from market changes. The most common financial instruments used in the hedging process are to-be-announced mortgage-backed securities (TBAs). Hedge coverage must be optimized on a continuous basis to adjust for changes in the market or pipeline through the selling and buying of these TBAs. TBA trading, particularly with regional broker-dealers, is the last remaining secondary marketing function that relies on telephone communications, which TAM now successfully automates. Contact us today to learn how TAM can save you 3+ BPS on your TBA trades, increase your productivity, and reduce your outbound calls by 44%.
To execute a digital TBA trade, simply submit a TBA request to your approved broker-dealers and then execute the winning bid.
Electronic TBA Trading with TAM
1. Lender Submits a Trade Request – Lenders use TAM to submit a TBA trade request, which is bid on individually or competitively by their approved broker-dealers via browser or API.
2. Lender Executes Winning Bid – Lenders receive individual or competitive bids on their TBA request within the TAM platform, then execute the winning bid with the click of a button.
3. Data Flows into MCTlive! – Once the trade is executed, data flows immediately into other key MCTlive! modules like Pipeline Coverage or the Trade Blotter.
TAM’s three step process to digitally trade TBAs in a competitive environment is earning lenders extra basis points while increasing the efficiency of their secondary marketing operations.
DIGITAL TBA MBS TRADING
Digital trading moves the process from phone-call to browser.
COMPETITIVE BIDDING AUTOMATION
TAM automates the competitive process, leading to enhanced execution.
PREFILL NECESSARY FORMS & AGREEMENTS
Automation speeds the process with prefilled forms & agreements.
BROKER/DEALER API INTEGRATIONS
MCT partners with broker/dealers who use TAM to bid on TBA trades via browser or API.
COMMON TRADES DATABASE OF RECORD
TAM’s centralized database reduces data entry errors and miscommunication.
ERROR-FREE AOT EXECUTIONS
AOT executions are automated and feature trade reconciliation functionality.