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CNS

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The CNS® system is the core netting, allotting, and fail-control engine of NSCC. Within CNS, each security is netted to one position per participant, with NSCC as its central counterparty (novation). From CNS, you can

  • Search for open CNS positions, including long and short buy-in positions.
  • View the CNS cash balance for your participant account.
  • Add, edit, delete, and search for existing fully-paid-for, exemption, and priority instructions.

CNSThe CNS learning content is designed to familiarize NSCC participants with all the functions of the CNS process. Review CNS learning content to:

  • List all the reports that are used to complete and balance daily settlements.
  • Explain each report, its function, and how it relates to each step in the settlement process.
  • Explain how the netting process works.
  • Explain the importance of the Consolidated Trade Summary (CTS).
  • Explain a one-day settling trade.
  • Distinguish between CNS and Non-CNS transactions.
  • Explain the importance of the Miscellaneous Activity report.
  • Understand the importance of the Preliminary and Final Cash Reconciliation Statements and the Daytime and Nighttime Settlement Activity Reports.
  • Understand the importance of the Final Settlement Statement and the Accounting Summary.

Members should refer to the Rules and Procedures of NSCC and other applicable parties for the legal obligations of all parties concerned. This guide is not intended to serve as a legal document. All brokerage firms and member numbers are fictional and used for illustration only. No statement in this content should be construed as a legally binding rule or regulation, or as creating an obligation on the part of NSCC or any person.

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Subcategories

View the answers to frequently asked questions about CNS Ancillary Services. 

Watch the two-part CNS Overview Webcast to learn more about continuous net settlement in the CNS service. Login to the Learning Center to access the part 1 and 2 CNS overview videos

Learn more about CNS, including using the dashboard, reports, features, exemption instructions, and business case examples. Login to view this content.

In response to events relating to the close-out of Lehman Brothers in 2008, NSCC and DTC have been engaged with the industry in a series of initiatives designed to improve the efficiency and reduce risks associated with transactions processed through NSCC’s Automated Customer Accounts Transfer service (“ACATS”). Previous initiatives focused on CNS-eligible and mutual fund ACATS obligations.

As a next step in this series of initiatives, a new ACATS settlement process has been developed for enhanced efficiency and risk reduction for ACATS transfers of CNS-eligible securities and assets that are eligible for settlement at DTC, but not in CNS (“non-CNS DTC-eligible assets”).

The changes address processing and risk-related concerns with respect ACATS processing of CNS-eligible securities and non-CNS DTC-eligible assets including:

  • First, this initiative creates functionality for NSCC to track non-CNS DTC-eligible ACATS obligations on ACATS settlement date and reverse only those uncompleted transactions of the defaulting Member in the event of a default. Previous initiatives focused on reversals of CNS-eligible and mutual fund ACATS obligations.
  • Second, the proposed modifications allow NSCC to track CNS ACATS transactions in case of multiple Member defaults on ACATS settlement date.
  • Third, revised processing ensures that non-CNS DTC-eligible items are credited to a no lien location, in the same way that CNS eligible items are.

The project completed migration to production in June 2014.