Mortgage Capital Trading Inc. (MCT) has officially launched Trade Auction Manager (TAM) to enable more efficient bidding of TBA mortgage-backed securities used by lenders to hedge their open mortgage pipelines. The browser-based software module is accessible via MCTlive!, the company’s comprehensive capital markets platform.
TAM completely digitizes a formerly manual communication process to confirm time-sensitive TBA trades that were once largely phone-based. TBA trading, particularly with regional broker-dealers, is the last remaining secondary marketing function that relies on telephone communications, which TAM now successfully automates.
MCT developed TAM in collaboration with multiple lender clients and broker-dealers who participated in the testing and successful soft launch in early 2019. With the introduction of TAM, the mortgage industry now has a TBA trading platform that allows broker-dealers to compete for a higher volume of trade requests, while lenders gain thanks to expansion and automation of the competitive bidding process.
“TAM is a seismic shift for the mid-sized lender–increasing execution, liquidity and transparency, while connecting them digitally with their regional dealers for the first time,” said Phil Rasori, chief operating officer at MCT. “The initial experience is showing that TAM will deliver a significant enhancement in execution for MCT clients.”