BMA Announces Publication of Revised Rules on MBS Buy-Ins
July 7, 2006
Beginning July 6, newly revised mortgage-backed securities buy-in procedures will be available to broker-dealers to use to clean up “fails,” a term for when a customer does not deliver securities by the settlement of a trade. The Bond Market Association announced the revised procedures this week, culminating a two-year review of its MBS Buy-In Procedures. The BMA procedures contain common industry practice and, although compliance is voluntary, they have been widely used as a…