TBMA Revises GSE Security Guidelines

The Bond Market Association has revised its recommended voluntary practice guidelines for secondary market trading in certain European-style callable securities issued by government-sponsored enterprises.Specifically, the association has revised the appendix C portion of the guidelines that deals with calculations for option-adjusted spread pricing. The association's revision reflects "technical improvements and current market conditions, specifically growing investor interest and the fact that multiple analytic and trading platforms and data vendors have recently begun supporting trading and/or analysis of ECSs in conformity with the guidelines," the association said. The association can be found on the Web at http://www.bondmarkets.com.