About Opening a TBA

Owned by Nancy Cohn (Deactivated)
Last updated: Oct 18, 2024 by Jawann Swislow
1 min read

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 Event Type field (tag 55) value on the Open TBA panel can be set to TBAOPEN, BUY, or SHORTSELL depending on the entity-level values of TBA Cashflow (tag 9406) and TBA Netting (tag 18577) as described in Set Up Entities for TBAs.

  • The Open TBA panel has a field called Create TBA Cashflow (tag 9406) that allows you to override the entity election. The value used for the open must also be used for the corresponding close.

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