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 exemptions and priority instructions.
Familiarize yourself with the CNS processes, including
- How the netting process works.
- Importance of the Consolidated Trade Summary (CTS) system.
- One-day settling trade.
- Distinction between CNS and Non-CNS transactions.
- Reports used to complete and balance daily settlements.
- Importance of various report and statements, including: Preliminary Statement, Miscellaneous Activity, Accounting Summary.
To help gain an understanding of the CNS system and processes, log in to view the two-part CNS Overview series.
Welcome to CNS® Overview Part 1, a two-part series View part 1 to obtain an introduction to the CNS system, including:
- Origins of the CNS system.
- Importance of CNS and multilateral netting.
- Flow of trades between brokers.
- Overview of the netting process and impact of a net position.
- Difference between long and short positions.
- Role of DTC.
- Workings of mark-to-market.
Video length: 15 minutes
Welcome to CNS® Overview Part 2. This part of the two-part series includes:
- CNS ancillary processes, such as exemptions, priorities, REORGs, dividends, and buy-in accounts.
- CNS reports that are used to complete and balance daily settlements.
- Benefits of using the CNS system.
Video length: 18 minutes