MarketAxess, a U.S. and European fixed-income electronic trading platform, has made an initial foray into U.S. nonagency residential and commercial mortgage-backed securities markets that appears to be drawing some interest.
"We are seeing inquiry on a daily basis," Lou Violante, structured products manager at Market Axess, said on the progress of the nonagency RMBS/CMBS offering that was launched roughly a week ago.
"We are in other fixed income market sectors and this is an effort to branch out," he said.
The company said in a press release it believes it is the only one to be currently offering electronic trading of nonagency RMBS and CMBS to institutional investors, although there have been efforts by other companies in the past.
Use of the system is free in the nonagency RMBS/CMBS market until a trade is done, at which point the dealer pays a per trade charge.