MISMO is seeking participants for its new workgroup tasked with creating a standard format for the exchange of bid-wanted in competition (BWIC) data. The standards organization stated this will facilitate accuracy, liquidity, and rapid pricing for agency mortgage-backed securities (MBS) transactions.
“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,” MISMO President Seth Appleton said. “This will allow the trading desks to process more BWICs, increasing industry participation that allows for more competitive pricing and higher volumes.”
As more lenders are choosing MBS execution and are distributing BWICs to securities dealer desks, the need for a standardized dataset has become apparent. Because the information is not standardized, dealers are having issues with the increased volume, leading to delays, lower pricing, and less participation in the BWIC than desired.
This new workgroup will create a standard dataset for MBS sellers to present BWIC data to securities dealer desks and improve data quality, accuracy, timeliness, and pricing of related BWIC transactions in the future. The group will conduct regular meetings via conference call and is expected to exist for one year, or until the project is complete.