This website sets cookies on your device. By continuing to use our site, you consent to our use of cookies in accordance with our Privacy Policy.
Menu Learning Center

Equities Clearing

4.00 ( 1 votes )

DTCC clears and settles virtually all broker-to-broker equity, listed corporate and municipal bond, and unit investment trust (UIT) transactions in the U.S. equities markets. DTCC advances new initiatives, drives development of products and services that mitigate risk, reduces costs, and enhances processing efficiencies for market participants.

NSCC Trade Flow

The National Securities Clearing Corporation (NSCC), a subsidiary of DTCC, provides clearing, settlement, risk management, central counterparty services, and guarantees completion for certain transactions for virtually all broker-to-broker trades involving equities, corporate and municipal debt, American depository receipts, exchange traded fund (ETF), and unit investment trust (UIT) transactions in the U.S. equities markets. DTCC advances new initiatives and drives product and service development that mitigate risk, reduce costs, and enhance processing efficiencies for market participants. The following figure shows the NSCC trade flow for the DTCC Equities Clearing products and services.

  • To view the description, hover over the product name in sienna.
  • To access the product's landing page, click an item in sienna.
  • To expand the NSCC Trade Flow interactive diagram, click Full Screen.

The Equities Clearing products and services are listed in the order that they appear in the NSCC Trade flow. You can also access them from the NSCC trade flow image. See also the NSCC Loss Allocation Overview eLearning to obtain a better understanding of the NSCC loss allocation practices. 

Universal Trade Capture (UTC)

Universal Trade Capture (UTC) is a service that validates and reports equity transactions that are submitted to NSCC by an exchange or by Qualified Special Representatives (QSRs) that is an NSCC Member. Use the menu below to learn more about UTC.

ETF Processing

An Exchange Traded Fund (ETF) is a security that trades on an exchange as an equity that seeks to replicate the performance of an index without the need to purchase the underlying components. The NSCC process for clearing ETFs includes the ability to review, either on-line or in a data file, the ETF’s portfolio constituents, thus automating the creation and redemption of ETF shares and their subsequent settlement. Use the menu below to learn more about Exchange Traded Funds (ETF).

DTCC Limit Monitoring

DTCC Limit Monitoring is a risk mitigation tool that leverages the largest aggregate equity trading information in the industry to bring users unprecedented post-trade insights. Leveraging NSCC's role as the central counterparty for the U.S. equities market, DTCC Limit Monitoring provides member firms with near real-time trade information in a centralized and standard method. Use the menu below to learn more about DTCC Limit Monitoring.

Consolidated Trade Summary (CTS)

The Consolidated Trade Summary (CTS) defines the expected settlement path for each transaction received by Universal Trade Capture (UTC) as eligible for the CNS or non-CNS transactions. Use the menu below to learn more about CTS.

CNS®

The CNS® system is NSCC’s core netting, allotting, and fail-control engine that enables continuous net settlements. Within CNS, each security is netted to one position per participant, with NSCC as its central counter-party (novation). Use the menu below to learn more about CNS.

Automated Customer Account Transfer Service (ACATS)

The Automated Customer Account Transfer Service (ACATS) is a system that automates and standardizes procedures for the transfer of assets in a customer account from one brokerage firm and/or bank to another.ACATS enables participants to efficiently and automatically enter, review, and generate instructions to settle the transfer of customer accounts. Use the menu below to learn more about ACATS.

Obligation Warehouse

The Obligation Warehouse system is a non-guaranteed, automated service of NSCC that facilitates the matching of broker-to-broker ex-clearing trades and provides Members with the ability to track, manage and resolve their failed obligations in real-time. Use the menu below to learn more about Obligation Warehouse (OW).

Cost Basis Reporting Service (CBRS)

The Cost Basis Reporting Service (CBRS) is an automated system that gives financial firms the ability to transfer customer cost basis information from one firm to another on any asset transfer. Be sure to watch the CBRS Overview webcast to learn about the important features of the CBRS application. Use the menu below to learn more about CBRS.

Securities Financing Transaction (SFT) Clearing

The DTCC Securities Financing Transaction (SFT) Clearing service provides central clearing for equity lending and borrowing transactions, leveraging the clearing capabilities, risk management, and efficient infrastructure of the DTCC equities clearing subsidiary, National Securities Clearing Corporation (NSCC). This service will introduce central clearing for equity securities financing transactions, including lending, borrowing and repo. Use the menu below to learn more about SFT Clearing.

NSCC Loss Allocation

View the three-part NSCC Loss Allocation Overview eLearning to obtain a better understanding of the NSCC loss allocation practices. Each part of this series builds upon the previous part. A transcript is available from the Resources link in each course. You can share your feedback about the eLearning at the end of each part. A Knowledge Check is included to solidify your comprehension of the concepts in this series.  

Login and click Expand All to watch Parts 1-3 of the NCC Loss Allocation Overview eLearning.