FICC in Proposed Rule Change (OPEN for comment): "Currently messages regarding pair-offs are transmitted between buyers and sellers by electronic mail using spreadsheets, which creates some risk that information sharing is incomplete, incorrect"
FICC in Proposed Rule Change (OPEN for comment): "Currently messages regarding pair-offs are transmitted between buyers and sellers by electronic mail using spreadsheets, which creates some risk that information sharing is incomplete, incorrect, inconsistent and not timely." [REDACTED] exhibit.
https://www.dtcc.com/-/media/Files/pdf/2023/5/18/MBS1225-23.pdf
- Currently messages regarding pair-offs are transmitted between buyers and sellers by electronic mail using spreadsheets, which creates some risk that information sharing is incomplete, incorrect, inconsistent and not timely.
- By automating and standardizing the transmittal of this information, the pair-off Messages would reduce those risks to the mortgage-backed securities market.
- The use of this Message will be voluntary and would allow users to eliminate the current manual process of transmitting information regarding the pair-off of transactions.
Proposed Rule Change
FICC is proposing to adopt fees for the use of the pair-off Messages that may be processed through the EPN Service. The proposed fees would be identified in the EPN Service Schedule of Charges in the EPN Rules, as follows: pair-off send Messages would be $0.10 per Message if sent from the opening of business to 1:00 p.m., $0.50 per Message if sent from 1:00 p.m. to 2:00 p.m., $1.00 per Message if sent from 2:00 p.m. to 3:00 p.m., and $0.75 per Message if sent from 3:00 p.m. to close of business; pair-off receive Messages would be $0.50 per Message if received from opening of business to 1:00 p.m., $0.25 per Message if received from 1:00 p.m. to 3:00 p.m., and $0.15 per Message if received from 3:00 p.m. to close of business.
FICC is also proposing to clarify the descriptions of other fees for the EPN Service to use consistent language in describing fees in the EPN Service Schedule of Charges. For example, these proposed changes would refer to the beginning of the business day as “Opening of Business” and refer to end of the business day as “Close of Business” consistently in the Schedule of Charges. These clarifications would avoid any confusion in the descriptions of these fees in the EPN Service Schedule of Charges, making them clearer to EPN Users.
Exhibit 3 – Confidential Supporting Information. Omitted and filed separately with the Commission. Confidential treatment of this Exhibit 3 pursuant to 17 CFR 240.24b-2 being requested.
Implementation Timeframe:
FICC would implement the proposed rule change on August 31, 2023.
Solicitation of comments:
Electronic Comments:
- Use the Commission’s Internet comment form (http://www.sec.gov/rules/sro.shtml);
- Send an e-mail to
[email protected]. Please include File Number SR-FICC-2023-007 on the subject line. - All submissions should refer to File Number SR-FICC-2023-007.
- Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly.
- Comments due 21 days from 5/18/23
TLDRS:
- Currently messages regarding pair-offs are transmitted between buyers and sellers by electronic mail using spreadsheets, which creates some risk that information sharing is incomplete, incorrect, inconsistent and not timely.
- By automating and standardizing the transmittal of this information, the pair-off Messages would reduce those risks to the mortgage-backed securities market.
- The use of this Message will be voluntary and would allow users to eliminate the current manual process of transmitting information regarding the pair-off of transactions.
