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 exchanges.

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

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 banks.


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Corporate and Municipal Securities
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Depository Trust Company (DTC)