CNS Overview

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.

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: 16 minutes

Welcome to CNS^® Overview Part 2. This part of the two-part series includes:

• CNS ancillary processes, such as exemptions, priorities, REORGs, dividends, buy-ins, and fully-paid-for accounts.
• CNS reports that are used to complete and balance daily settlements.
• Benefits of using the CNS system.

Video length: 13 minutes