Fimat USA, Inc., in a bit to become a significant player in the mortgage-backed securities market, said today it had joined the Mortgage Backed Securities Clearing Corporation (MBSCC), a division of the Fixed Income Clearing Corporation.
Fimat USA is the US division of the Fimat Group, one of the world’s leading global brokerage organizations and part of Socit Gnrale Group. FIMAT provides global clearing and execution services to institutional users of derivatives and securities markets worldwide.
“This is an important step for us, as it will allow us to substantially expand our mortgage backed securities business,” said Cynthia Zeltwanger, President and CEO, Fimat USA, Inc.
“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,” Zeltwanger added. “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 also 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.