The Treasury Market Practices Group
The Treasury Market Practices Group (TMPG) is a group of market professionals committed to supporting the integrity and efficiency of the Treasury, agency debt, and agency mortgage-backed securities markets. The TMPG is composed of senior business managers and legal and compliance professionals from a variety of institutions — including securities dealers, banks, buy-side firms, market utilities, foreign central banks, and others — and is sponsored by the Federal Reserve Bank of New York.
Treasury Market Practices Group Seeks Comment on Consultative White Paper and Proposed Best Practice Recommendations for U.S. Treasury Repo Risk Management
The Treasury Market Practices Group (TMPG) today released a consultative white paper Non-Centrally Cleared Bilateral Repo and Indirect Clearing in U.S. Treasury Market: Focus on Margining Practices. The white paper identifies several risks posed by current risk management practices in the U.S. Treasury repurchase agreement (repo) market. In light of these risks, the TMPG is proposing updates to its existing Best Practices for Treasury, Agency Debt, and Agency Mortgage-Backed Securities Markets, including recommending that, consistent with appropriate risk management of counterparty exposures, all Treasury repo should include prudent haircuts (or margin) on the value of the securities, in concert with other risk management techniques. The TMPG also released a proposed set of Frequently Asked Questions (FAQs) to provide further guidance on the recommended proposed best practices. The TMPG seeks comment on this material by April 30, 2025.
Treasury Market Practices Group Updates its Best Practice Recommendations related to Operational Resiliency
The Treasury Market Practices Group (TMPG) today updated the existing "Best Practices for Treasury, Agency Debt, and Agency Mortgage-Backed Securities Markets" to provide market participants with enhanced recommended guidance on operational resiliency in TMPG-covered markets. This change responds to recent cybersecurity events and other widespread outages and service disruptions.
Treasury Market Practices Group Reaffirms its Best Practice Recommendation and Updates Frequently
Asked Questions on Margining of Agency MBS Transactions
The Treasury Market Practices Group (TMPG) today reaffirmed its longstanding best practice recommendation for two-way margin exchange across the range of forward-settling agency MBS transactions as an effective mitigant for credit and systemic risk. The TMPG also updated the “Frequently Asked Questions: Margining Agency MBS Transactions” in light of amendments to the Financial Industry Regulatory Authority’s Rule 4210 on Margin Requirements related to forward-settling
Agency MBS transactions, which became effective on May 22, 2024.
Treasury Market Practices Group Updates its Best Practice Recommendations to Promote Price Transparency
The Treasury Market Practices Group (TMPG) today updated the existing Best Practices for Treasury, Agency Debt, and Agency Mortgage-Backed Securities Markets. This followed the publication of the proposed clarification on price transparency across trading platforms for public comment on December 19, 2023. The update clarifies that all interdealer voice brokers with electronic trading screens should publish all voice trades to those screens when the trade is agreed. All other elements of the TMPG recommended best practices remain unchanged.
