Signalling their intention to be a significant player in the mortgage backed securities market Fimat USA, Inc. the US subsidiary of Fimat Group has joined the Mortgage Backed Securities Clearing Corporation (MBSCC), a division of the Fixed Income Clearing Corporation.
Commenting on the membership, Cynthia Zeltwanger, President and CEO, Fimat USA, Inc. said, “This is an important step for us, as it will allow us to substantially expand our mortgage backed securities business. We have been a very active player on the futures side of mortgages for many years, advising our clients on hedging, using futures and options, against prepayment and extension risk. It is a natural step for us to expand our portfolio of brokerage products to include the cash side as well.”
The membership will allow Fimat USA, Inc. to submit mortgage backed securities transactions to the MBSCC for netting and trade for trade clearing. The membership clears the way for Fimat USA, Inc. to broker large volumes of business in this market.
Fimat USA, Inc.’s commitment to the mortgage market was strengthened last year when they brought on board a new brokerage team headed by Patrick Downes specializing in mortgage and asset backed securities. Fimat USA, Inc., originally made its name in the futures market where it is currently ranked number 7 in the US market. Vincent Bonamy, Managing Director, Financial Products and Services, Fimat USA, Inc said, “We are very strong on the futures side, but we are also much more than a futures broker. Fixed income cash represents more than 50% of our business.
We have built a name for ourselves in the area of relative value trading underpinned by quantitative analysis. Our clients come to us because our philosophy is to put the trading idea first and the product is really secondary.”
The mortgage backed securities market, with large volumes and influential market participants, is central to the understanding of the larger fixed income market. Bonamy said, “There are favorable synergies for us between our fixed income business and our move into the mortgage backed securities market.”
Commenting on the membership, Patrick Downes, Managing Director Securitized Product Group Fimat USA, Inc said, “This is one of the many steps Fimat USA is taking to support the mortgage business.”
Zeltwanger said, “The idea of transacting all of your business in one place is becoming increasingly attractive to clients. Our focus on mortgage backed securities will only strengthen our client relationships as we are able to access a wider range of products.”