NSCC’s ETF process provides the following efficiencies and risk controls around the creation and redemption of ETFs:

  • Provides Members with the ability to select only the portfolios they need for next day’s trading through a web based on-line view. Through this mechanism, Members may down load the portfolio details to an excel spread sheet format. In addition, Members may continue to elect to receive a nightly data file containing the same information that is available through the web based tool.
  • Provides Members with the ability to submit a supplemental portfolio on trade date for standard and custom portfolios.
  • Provides an Instruction Detail file or report containing the details for each ETF’s creation and redemption.
  • Reduces manual deliveries.
  • Provides clearance and settlement of the ETF, as well as the underlying components, through NSCC's CNS and Non-CNS settlement processes. When eligible, settlement of the underlying components of ETFs and certain eligible ETFs through CNS are guaranteed by NSCC.
  • Allows Members to create or redeem ETFs on a shortened settlement cycle either on a next-day or two-day settling basis.
  • Allows Members to create or redeem a customized standard portfolio by substituting the underlying components with cash, or by replacing those components with other securities that are eligible to be processed at NSCC.
  • Allows Members to create or redeem a portfolio either against cash or through the exchange of securities.

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