Rules for the first tradable ABS index, released Sept. 14 by Markit, which serves as the administrator of the index, will include 20 RMBS issuers and have five sub-indexes consisting of one security from each issuer. The sub-indexes will include an "Aaa Sub-index," an "Aa2 Sub-index," an "A2 Sub-index, a "Baa2 Sub-index" and a "Baa3 Sub-index." As of last week, eight institutions had signed up as market makers, according to Nomura Securities.

The index is expected to be up and running sometime in the fourth quarter, according to industry participants, and a similar index for CMBS is anticipated to follow shortly after.

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