Welcome » IT Booklets » Wholesale Payment Systems » Securities Settlement Systems » Corporate and Municipal Securities » National Securities Clearing Corporation (NSCC)
NSCC, established in 1976, provides clearing and settlement
services for corporate equities, corporate debt, municipal
securities, mutual funds, annuities, and unit investment trusts.
NSCC is a registered clearing corporation regulated by the
Securities and Exchange Commission (SEC). With roughly 250
full-service participants, NSCC handles all aspects of the clearing
and settlement of trades between brokers and dealers in securities
traded on the over-the-counter markets, the New York Stock
Exchange, the American Stock Exchange, and other regional
Executed trades are typically reported to NSCC on trade date.
Trades are either reported to NSCC by an established exchange as
matched (irrevocable) trades or by brokers and dealers as unmatched
trades. Trades submitted by brokers and dealers are compared and
matched within NSCC's Continuous Net Settlement (CNS) system.
Following the comparison process, NSCC becomes the legal central
counterparty and guarantees completion of all securities trades
following through CNS. CNS functions as an automated book-entry
accounting system that centralizes the settlement of compared
security transactions and maintains an orderly flow of securities
and money balances.Further information about NSCC's clearing
processes can be found at www.nscc.com.
Similar to the FICC netting process, successfully matched trades
of eligible securities are netted against offsetting net-receive or
net-deliver obligation of the same security. Settlement of
securities takes place at the Depository Trust Company and funds
settlement occur over the Fedwire Funds Service through settlement