The New Federal Reserve Bank said on Wednesday it will be lifting up the margin requirements on 21 primary dealers in transactions dealing with mortgage-backed securities, in order to to establish a sheild against settlement risk within its counterparties. The requirement could begin next Monday.

The NY Fed may pose a 2.5 percet inital margin on the dollar ammount of mortgage-backed securities transactions from the dealers, accordingly, the dealer may need to put a $25 million in cash collateral for a mortgage-backed securities transaction of $1 billion.