Search Results for keywords:"Mortgage-Backed Securities Division"

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Search Results: keywords:"Mortgage-Backed Securities Division"

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  • 2020-29251 — Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Extension of the Review Period of an Advance Notice To Modify the Calculation of the MBSD VaR Floor To Incorporate a Minimum Margin Amount
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    Type:Notice
    Citation:86 FR 584
    Reading Time:about 43 minutes

    The Securities and Exchange Commission (SEC) is reviewing a proposal by the Fixed Income Clearing Corporation (FICC) to modify the calculation of the VaR (Value at Risk) Floor for its Mortgage-Backed Securities Division. The change aims to incorporate a "Minimum Margin Amount" to better account for market volatility and ensure adequate risk management. This proposal was developed after the COVID-19 pandemic revealed that the existing calculations did not sufficiently cover risks, particularly during periods of extreme market changes, and the SEC is inviting public comments on this advance notice. The proposed enhancements are designed to limit FICC's exposure by ensuring that its systems account for recent and more volatile market conditions.

    Simple Explanation

    The grown-ups in charge of safe money systems want to change how they keep mortgage money safe, especially when things go up and down a lot, like a wild roller coaster. They're asking people what they think about this idea to make sure everyone's money stays safe and sound.

  • 2024-30520 — Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Clearing Fund Maintenance Fee of MBSD and GSD
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    Type:Notice
    Citation:89 FR 104595
    Reading Time:about 11 minutes

    The Fixed Income Clearing Corporation (FICC) has proposed changes to the way it calculates Maintenance Fees for its Mortgage-Backed Securities Division (MBSD) and Government Securities Division (GSD). Starting January 1, 2025, instead of charging a fee only on the cash deposit balance, FICC will calculate the fee based on the total Required Fund Deposit while lowering the fee rate from 0.25% to 0.085%. This change aims to encourage members to deposit more cash by removing disincentives, potentially enhancing FICC's liquidity. Although the change is intended to be revenue neutral for FICC, different members might see increases or decreases in their fees depending on their deposit sizes and risk profiles.

    Simple Explanation

    FICC is changing how they charge a fee for keeping track of money that people store with them. Starting in 2025, they'll look at how much total money is required to be kept safe instead of just cash, and they're making the fee smaller to maybe encourage people to keep more money there, which is supposed to be fair for everybody.