TMPG Expands Into Agency Debt And MBS Markets

The Treasury Market Practices Group (TMPG), a private-sector group that offers advisory services relating to Treasury cash, repo and related markets, says it will expand its scope beyond the Treasury market to include the promotion of market best practices related to trading and settlement in the agency debt and agency mortgage-backed securities (MBS) markets.

The expansion is natural for the TMPG, the group says, given the importance of the effective functioning of the Treasury, agency debt and agency MBS markets, as well as the extensive overlap of trading and settlement structures and investors across the markets.

The TMPG was formed in February 2007 and is currently composed of representatives from dealers, buy-side firms, custodians and other market participants. In light of its expansion, the TMPG's membership composition will likely evolve over time to ensure support of the group's efforts across the Treasury, agency debt and agency MBS markets, the group adds.

"The TMPG will work with a broad range of market participants to support and enhance the liquidity and
functioning of the agency debt and agency MBS markets," explains Thomas Wipf, chair of the TMPG.

As sponsor of the group, the Federal Reserve Bank of New York continues to facilitate and support the work of the TMPG, says Brian Sack, executive vice president and head of the New York Fed's Markets Group.

"The New York Fed applauds the TMPG's decision to expand its scope to include the agency debt and agency MBS markets, and commends the group's progress to date," Sack says. "Having sound and efficient markets in Treasury debt, agency debt and agency MBS is critical to investors and policy-makers alike."

SOURCE: New York Fed


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