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, and others — and is sponsored by the Federal Reserve Bank of New York.
TMPG Proposes Best Practice Guidance for the Use of Financial Benchmarks
The TMPG has proposed for comment a set of updates to its best practice guidance for the Treasury, agency debt and agency mortgage-backed securities (MBS) markets to address the use of financial benchmarks. The proposed additions to the best practice recommendations are based on an examination of three case studies and informed by relevant policy initiatives such as IOSCO’s Principles for Financial Benchmarks ("IOSCO Principles"). The TMPG welcomes feedback on its proposed best practice guidance, as well as a supporting document, Use of Financial Benchmarks in TMPG-Covered Markets: Three Sample Case Studies.
*The TMPG extends the comment period for receiving feedback to Friday, February 12, 2016.
TMPG Releases Updated Best Practice Guidance to Address Automated Trading
The TMPG has updated the existing Best Practices for Treasury, Agency Debt, and Agency Mortgage Backed Securities Market by incorporating recommendations related to automated trading in TMPG covered markets. The TMPG believes that these updates will provide guidance for market participants to promote integrity and efficiency of TMPG covered markets in light of the growth in automated trading. The TMPG has also released a final version of the white paper on Automated Trading in Treasury Market that describes the growth of automated trading in the secondary market for Treasury securities, and some of the benefits and risks associated with this evolution.
TMPG Releases Consultative White Paper on Automated Trading in Treasury Market and Proposes Best Practice Guidance
The TMPG has released a consultative white paper describing the growth of automated trading in the secondary market for Treasury securities, and some of the benefits and risks associated with this evolution. The paper also incorporates proposed updates to TMPG best practice guidance for the Treasury, agency debt and agency mortgage-backed securities (MBS) markets related to automated trading.
TMPG Releases Updates to Fails Charge and Margining FAQs
The TMPG has published updated FAQs related to its fails charge and agency MBS margining recommendations. These updates provide further guidance regarding the applicability of these two best practice recommendations to agency multifamily and project loan securities.
TMPG Releases Updates to Best Practices Document
Following a routine review of its Best Practices for Treasury, Agency Debt, and Agency Mortgage-Backed Securities Markets, the Treasury Market Practices Group (TMPG) has published an updated best practices document. This living document now more clearly incorporates the Group's subject-matter specific recommendations within its broader principles-based document, as appendices, and includes several other minor changes. Market participants choosing to adhere to TMPG best practices should continue to practice both the general principles and the more specific practice recommendations that are included as appendices.
TMPG Releases Updates to Fails Charge FAQs
The TMPG has published updated FAQs related to its fails charge practice recommendation. As part of this update, the TMPG has provided further guidance regarding the applicability of fails charges for free-deliveries, pair-offs and round robins.
TMPG Releases Updates to Agency MBS Margining FAQs
In response to feedback from market participants, the Treasury Market Practices Group (TMPG) has provided further guidance regarding the scope of its recommendation to margin forward-settling MBS transactions and considerations when implementing this best practice recommendation. The TMPG recommends that market participants substantially complete the process to exchange two-way variation margin on forward-settling MBS exposures by December 31, 2013.
TMPG Releases Updates to Agency MBS Margining Recommendation
The Treasury Market Practices Group (TMPG) updated its recommendation regarding the margining of forward-settling agency mortgage-backed securities (MBS) transactions. Specifically, the TMPG modified its recommended implementation timeline and clarified two aspects of the margining recommendation in response to feedback received from market participants. The TMPG believes that these updates will provide the time and guidance needed by market participants to implement this practice guidance.
TMPG Recommends Margining of Agency MBS Transactions to Reduce Counterparty and Systemic Risks
The Treasury Market Practices Group (TMPG) strengthened the existing Best Practices for Treasury, Agency Debt, and Agency Mortgage-Backed Securities Markets to include a recommendation that forward-settling agency MBS transactions be margined in order to prudently manage counterparty exposures. The Group encourages market participants to complete the implementation process by early June 2013.