Beacon Capital Markets To Expand E-Trading To Include Non-Agency Securities

Capital Markets LLC, which operates a marketplace dedicated to electronic trading in the mortgage-backed securities (MBS) market, says it plans to add trading in non-agency MBS, asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS) beginning July 10. The move marks an expansion of the firm's Trade Discovery Platform, which has been trading agency MBS since its launch in April 2008. Effective July 10, market participants will be able to trade the full range of private-label or non-agency MBS. In addition, the full array of ABS will be accessible, including auto loans, credit card and home equity ABS. "The addition of non-agency MBS, ABS and CMBS trading is a natural step in the growth and development of our platform," comments Rob Barsky, Beacon Capital Markets' chief operating officer and co-founder. "Market participants have urged us to add these less liquid securities to the platform, and given the challenges in the current market, we believe the timing is right to offer this expanded lineup." Market participants can locate and trade non-agency MBS and ABS using search methods specifically fine-tuned for these securities, the company says. Trades are negotiated anonymously and automatically . Barsky says trading of these securities is based in part on the Obama administration's plans to advance its Public Private Investment Program. "Holders of so-called legacy bonds will want to make those available to the new sources of investment coming to market, explicitly to own those bonds," he says. Beacon Capital Markets will act as executing broker for all non-agency MBS, ABS and CMBS trades, and Broadcort, a leading provider of clearing and settlement services that is a division of Merrill Lynch, will clear and settle the trades. SOURCE: Beacon Capital


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