Agile, a groundbreaking fintech bringing mortgage lenders and broker-dealers onto a single electronic platform, announced today the launch of limit orders, a new quote request type for the To-Be-Announced mortgage-backed securities (TBA) market. Limit orders allow traders on Agile to request a specific price level, rather than conducting an open-ended bid process, giving them greater confidence and freeing precious time, especially during periods of market volatility.
Agile, a groundbreaking fintech bringing mortgage lenders and broker-dealers onto a single electronic platform, announced today the launch of limit orders, a new quote request type for the To-Be-Announced mortgage-backed securities (TBA) market. Limit orders allow traders on Agile to request a specific price level, rather than conducting an open-ended bid process, giving them greater confidence and freeing precious time, especially during periods of market volatility.
"Limit orders help me get better execution for my clients in a choppy market," shared Drew Thornhill, Senior Trader at MCT, one of Agile's hedge advisor clients, who manages coverage on over $450 million in open pipelines on behalf of mortgage lenders. "In my experience, it's impossible to get the same efficiency and execution over the phone that I can achieve using Agile for limit orders."
TBAs are broadly used by mortgage lenders to hedge their open pipeline of locked mortgage applications against changes to interest rates during the origination process. Improvements to execution and efficiency in TBA trading can have an outsize impact on mortgage lender profitability. Limit orders allow traders to select a desired price level and time in force, in addition to the typical TBA quote request details. Limit order functionality is also very much welcomed by broker dealers who are given extra time and dynamic communication tools to acquire the level the lender is seeking or share background toward reaching a different agreement.
"Limit orders are very useful on the fringe coupons that are not as liquid, to build up price certainty and prepare for origination activities at the low or high end of the rate range," said Greg Vacura, president at Agile. "They are also useful on spec deals where lenders need to get more granular pricing on a specific tranche, loan size, or state. Developing limit orders in collaboration with our lender and dealer clients has led to a rewarding win-win."
Limit orders are now available to all Agile platform users. Mortgage lenders, broker-dealers, or hedge advisors interested in learning more about this new quote request type are encouraged to contact Agile for more information: https://trade-agile.com/contact-us/.
Read the full press release: https://trade-agile.com/limit-orders-tba-mbs/
About Agile:
Agile brings together mortgage lenders and dealers of all sizes onto a single MBS fintech platform. Agile facilitates the exchange of TBA MBS by securing and automating communication between mortgage lenders and broker-dealers. Agile digitizes the historically phone-based process to an electronic platform which may improve profitability and efficiency, while reducing administrative errors. Through its competitive TBA RFQ digital platform, mortgage lenders gain access to national and regional broker-dealers previously inaccessible on digital platforms, while broker-dealers gain access to an ever-growing network of lenders. Based in Philadelphia, Agile Trading Technologies supports a national network of clients* with a team of capital markets professionals who have deep trading experience at financial organizations of every size. Learn more: https://trade-agile.com/.
*Agile is not available for retail natural person investors.
Related link: https://trade-agile.com/
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