Interactive Data Corp and the Financial Industry Regulatory Authority are trying to shed some light on market activity related to U.S. structured securities for the first time ever.
The two have developed a series of reports which incorporate an aggregate summary of daily transactions in the U.S. asset-backed and mortgage-backed securities markets, found on FINRA's Trade Reporting and Compliance Engine, otherwise known as Trace.
Interactive Data and FINRA will also provide the U.S. structured trading activity report to include he volume of transactions, number of trades and number of unique securities. The U.S. structured trading pricing tables will also provide more detailed asset categories by asset class and include average prices, volume by trade size and buy or sells.
All of the reports will be available on FINRA's website and to Interactive Data's clients via Vantage, a new web application. The information was not publicly available previously because FINRA was collecting it through its TRACE system from May when it expanded the platform to include asset backed and mortgage-backed securities. An average of about $288 billion in about 15,000 trades is traded each day in the asset-backed and mortgage-backed market, Of the $288 billion about 85 percent consists of to-be-announced securities .
"For the first time, securitized products including a market activity report and pricing tables will be available to the public," says Steve Joachim, executive vice president at FINRA. "The ability to generate this level of transparency in the asset-backed securities and mortgage-backed securities markets is critical to investors, particularly during volatile economic conditions."