Northern Trust Adds Collateral Management Offering for MBS

With the Treasury Market Practices Group’s (TMPG) recommendations for margining for mortgage-backed securities (MBS) going into effect at the end of 2013, Northern Trust has enhanced its collateral management system to include forward settling MBS.
By Jake Safane(2147484770)
With the Treasury Market Practices Group’s (TMPG) recommendations for margining for mortgage-backed securities (MBS) going into effect at the end of 2013, Northern Trust has enhanced its collateral management system to include forward settling MBS.

The offering is a component of Northern Trust’s Investment Operations Outsourcing for asset managers and is integrated with the firm’s global custody and collateral management systems. This new collateral management service supports two-way variation margin in line with TMPG’s recommendations.

“Many asset managers are struggling to comply with the protocol, which affects securities that are critical for mortgage strategies as well as short-term fixed income trading strategies,” says Judson Baker, product manager for derivatives and collateral management at Northern Trust. “By offering this capability, Northern Trust helps these managers to comply with new rules while saving them the time and expense of building or buying a system or hiring additional staff to monitor their credit support agreements.”

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