Thomson Reuters today announced that over 220 US mortgage banks have joined the Thomson Reuters Eikon community to access and trade the US secondary mortgage market.
Loan originators, pipeline hedgers and risk managers, including Parkside Lending and MountainView Securities, now rely on Thomson Reuters Eikon to take advantage of unrivalled data and news coverage of the "to be announced" mortgage-backed securities market (TBA MBS), the primary driver of residential mortgage rates, and connect with their peers in the financial community. These financial professionals also benefit from access to Tradeweb, the leading dealer-to-customer marketplace for TBA MBS trading.
Thomson Reuters Eikon is a powerful solution for fixed income professionals based in the US. With exclusive benchmark data, market moving news, unique analytical tools and click-to-trade access to Tradeweb, Eikon provides users with one destination for all of their investment needs. To provide the most comprehensive offering to this market, Thomson Reuters has brought together leading distributors in fixed income data, including Thomson Reuters assets Reuters news and IFR Markets and third-parties ICAP, BrokerTec and Markit, to deliver invaluable insight to traders making investment decisions.
"Managing counterparty risk requires accurate data in real time," said William Sias, managing director of fixed income sales at MountainView Securities. "Thomson Reuters Eikon provides a platform to disseminate this information in a timely and accessible format, and this helps our mortgage pipeline hedging team minimize the cost of providing liquidity and credit to our customers and mortgage originators."
"Once Thomson Reuters showed me the value of the Eikon platform and the cost of one wrong trade with the wrong platform, I was hooked," said Patty Gong, EVP, secondary marketing at Parkside Lending, LLC. "The TBA screen is easy-to-use and is always open as part of my daily workflow. After seeing the value Thomson Reuters Eikon added to our business we increased our licenses so that all our traders can use it."
The US housing finance mechanism is driven almost exclusively by the TBA MBS market. As a result, the TBA MBS securitization model has been widely accepted as the future of US housing finance. By combining access to Tradeweb with innovative collaborative tools, Thomson Reuters Eikon is supporting the Federal Housing Finance Agency's (FHFA) objective to build a more transparent infrastructure for the US secondary mortgage market.
"The collapse of investor confidence in 2008 led to a credit crunch of global proportions and prompted calls for additional layers of market transparency and accountability," said Chris Volpe, head of fixed income and foreign exchange, Americas, Thomson Reuters. "Thomson Reuters Eikon provides users with accurate data and actionable information while creating clear lines of communication between counterparties and really connecting the financial community through tools such as chat, messaging and comprehensive counterparty directories. The powerful combination of Eikon with Tradeweb automatically puts this solution at the center of the mortgage market and its future."
Thomson Reuters Eikon is designed to provide an intuitive, next-generation solution for consuming real-time data and executing financial markets transactions across asset classes such as foreign exchange (FX), fixed income, commodities, equities and derivatives. It realizes Thomson Reuters vision for a financial markets desktop that is intelligent, simple and social. Driven by powerful search engine technology, Eikon carries real-time data, news, charts, insightful commentary, analytics and trade execution tools through views that can be customized to individual user preferences and workflow.