About Opening a TBA

After you set up the TBA SMF record, you can open the security, as either a Long position or a Short position. For detailed information, see Book Trades for TBAs.

The Open TBA panel in the Book Trade tool looks exactly like the MBS Open panel, with the following three exceptions:

• The hidden Event Type field (tag 55) value on the TBA Open panel is TBAOPEN.

• On the TBA Open panel, there is no Calculate Yield/Accrued Interest Indicator field to calculate amortization yields or accrued interest purchased. If you need to place accrued interest on the TBA Open trade, you must manually enter a value for the Traded Interest field (tag 49).

• The TBA Open panel has a field called Create TBA Cashflow (tag 9406). This field indicates whether to create a cash flow (traded row in the Cash object) for the open of a TBA transaction, or to only create the net cash flow at the time of the close of the position. Enter Yes to create cash flows for the open of the TBA, and enter a No or Null in this field if you do not want the system to create cash flows for the open of the TBA.