Frequently Asked Questions (FAQs): Margining Agency MBS Transactions The following FAQs refer to the Treasury Market Practices Group (TMPG) recommendation on margining of forward‐settling agency mortgage‐backed securities (MBS) transactions and update previous TMPG FAQs from June 13, 20141. Please refer to the “Margining of Agency MBS” section on the TMPG website for additional details. Sept. [...] What kind of legal agreement should be used for implementing the margining practice? The TMPG recommends that written agreements describe the parties’ agreement on all aspects of the margining regime, including collateral eligibility, timing and frequency of margin calls and exchanges, thresholds, valuation of exposures and collateral, and liquidation. Written master agreements covering agenc.
- Pages
- 4
- Published in
- United States of America
Table of Contents
- Frequently Asked Questions FAQs Margining Agency MBS Transactions 1
- What is the TMPG best practice recommendation on margining of forwardsettling agency MBS transactions 1
- Should I implement the TMPGs MBS margining recommendation for all of my counterparty exposures 1
- Why does the TMPG recommend widespread use of margining for agency MBS transactions 1
- Why does the practice recommend twoway variation margining 2
- Does the margining practice recommendation apply to all forwardsettling transactions in the Treasury agency debt and agency MBS markets 2
- For the purpose of the TMPG margining practice recommendation what does forward settling mean 2
- What type of collateral should be eligible for margining purposes and should there be any constraints around the reuse of collateral 3
- Does the TMPG recommend that agency MBS transactions of the categories described above that are failing at settlement be margined 3
- What was the effective date of the TMPG recommended margining practice 3
- What kind of legal agreement should be used for implementing the margining practice 3
- Does the TMPG provide guidance for recommended thresholds or minimum transfer amounts 4
- Does the TMPG provide guidance for the timing and frequency of margin calls 4
