Electronic trading of US mortgage-backed securities is to grow faster than in any other US fixed income product as investors look for greater price transparency in these complex instruments, according to a new report.

Electronic trading systems for buying and selling MBS, the largest US bond market valued at $7.1 trillion (€4.9 trillion), accounts for 31% of total assets traded and this is set to increase 35% by the end of 2010, according to a report by research house Celent.