MISMO to Facilitate Liquidity, Rapid Pricing for MBS Transactions by Standardizing BWIC Exchange
MISMO®, the real estate finance industry standards organization, announced it is standardizing the bid-wanted in competition dataset format to facilitate accuracy, liquidity and rapid pricing for agency mortgage-backed securities transactions.
More lenders are choosing MBS execution than ever before and are distributing BWICs, a formal request for bids on a package of securities, to securities dealer desks. Currently, the information transmitted to dealers is not standardized, and, as a result, dealers are having trouble keeping up with the increased volume of BWICs, which can lead to delays, lower pricing, and less participation in the BWIC than desired
The new MISMO development workgroup will create a standard dataset for MBS sellers to use to present BWIC data to securities dealer desks to improve data quality, accuracy, timeliness and pricing of related BWIC transactions going forward.
“MISMO is ready to collaborate and engage with lenders and dealers to create a standard format that allows for the presentation of stable and consistent data leading to a consistent, repeatable BWIC format,” said Seth Appleton, President, MISMO. “This will allow the trading desks to process more BWICs, increasing industry participation that allows for more competitive pricing and higher volumes.”
The BWIC Workgroup will conduct regular meetings via conference call. This DWG is expected to exist for one year or until it completes its mandate.
Interested participants should visit this link for more information. MISMO’s work to solve key business challenges is made possible due to lender support of the MISMO Innovation Investment Fee. For information on MISMO and how to join go here.