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Fixed Income Market Structure: Treasuries vs. Agency MBS, Accessible Data

Figure 1. Agency MBS Market Structure

The figure provides a simplified depiction of the structure of the agency MBS market circa 2019. Interdealer broker (IDB) platforms form the hub of the market structure. Dealers surround the IDB venue of the market and trade amongst one another anonymously. In the outer ring of the market structure, dealers trade with their clients. Trading between dealers and their clients can occur in either of two ways: directly, via phone for example, or via a request-for-quote (RFQ) platform.

Note: This figure provides a simplified depiction of the structure of the agency mbs market circa 2019. DTC, DTD, and IDB denote the dealer-to-client, dealer-to-dealer, and interdealer broker segments of the market, respectively.

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Last Update: August 25, 2020