The Continuous Net Settlement (CNS) learning content is designed to familiarize NSCC participants with all the functions of the CNS process.

Getting Started

The CNS Overview webcasts provide a great introduction to Continuous Net Settlement at DTCC. Log in to view CNS content in this Learning Center.

Review CNS learning content to be able to:CNS

  • 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.

  • Implementation of Corporate Action Processing on SMART/Track for CNS Corporate Actions (07/31/2014)

    Members are reminded that on August 8, 2014, NSCC will be implementing enhancements to its CNS corpo ...
    In CNS Corporate Actions Important Notices Downloads: 106

  • Implementation of Corporate Action Processing on SMART/Track for CNS Corporate Actions (06/24/2014)

    In Important Notice A# 7403, P&S# 7833 dated May 5, 2014 the National Securities Clearing Co ...
    In CNS Corporate Actions Important Notices Downloads: 114

  • CNS ACATS and DTC Settling Assets - Addendum Notice (05/19/2014)

    Important Notice 0916-14 outlined the key process changes associated with the May 30th, 2014 impleme ...
    In CNS ACATS DTC Important Notices Downloads: 131

  • Implementation of Optional Dividends on SMART/Track for CNS Corporate Actions (05/08/2014)

    In Important Notice A# 7403, P&S# 7833 dated May 5, 2014 the National Securities Clearing Co ...
    In CNS Corporate Actions Important Notices Downloads: 103

  • DTC Settlement Changes for the CNS ACATS and DTC Settling Assets Project (05/08/2014)

    Beginning on settlement date May 30, 2014, subject to Securities and Exchange Commission (SEC) appro ...
    In CNS ACATS DTC Important Notices Downloads: 303

  • Set-up of CNS Exemptions for New Sub-Account (04/10/2014)

    Beginning on settlement date May 30, 2014, subject to Securities and Exchange Commission (SEC) appro ...
    In CNS ACATS DTC Important Notices Downloads: 129

  • Enhancements to CNS Corporate Action Database - Registration for SMART/Track for CNS Corporate Actions (03/27/2014)

    As previously announced in Important Notice A#7806, P&S# 7376 dated March 24, 2014, the Nati ...
    In CNS Corporate Actions Important Notices Downloads: 119

  • Implementation and Registration for SMART/Track for CNS Corporate Actions (03/24/2014)

    In Important Notice A#7671, P&S# 7341 dated January 28, 2014 the National Securities Clearin ...
    In CNS Corporate Actions Important Notices Downloads: 192

  • Training on SMART/Track for CNS Corporate Actions - Proposed Enhancements to CNS Corporate Action Database (02/13/2014)

    In Important Notice A#7671, P&S#7341, dated January 28, 2014, the National Securities Cleari ...
    In CNS Corporate Actions Important Notices Downloads: 112

  • Enhancements to CNS Corporate Action Database (01/28/2014)

    Subject to approval from the Securities and Exchange Commission (“SEC”) of a proposed ru ...
    In CNS Corporate Actions Important Notices Downloads: 158

  • Participant Testing of the CNS ACATS and DTC Settling Assets Project (11/18/2013)

    In May 2014, subject to Securities and Exchange Commission (SEC) approval, the National Securities C ...
    In CNS ACATS DTC Important Notices Downloads: 139

This webcast will provide a brief overview of the SMART/Track for Corporate Action Liability Notification Service,...

Category: CNS Corporate Actions
Views: 4

Louis Lepore talks about the benefits of the CNS Corporate Actions web application, including instructions long...

Category: CNS Corporate Actions
Views: 1

This is an interactive 15-minute overview of Continuous Net Settlement, Part 2 of 2.

Category: Continuous Net Settlement (CNS)
Views: 7

This is an interactive 15-minute overview of Continuous Net Settlement, Part 1 of 2.

Category: Continuous Net Settlement (CNS)
Views: 57

CNS Ancillary Services


To access "Fully Paid For accounts", you need to be able to access DTCC’s Customer portal. If you do not have access, contact your access coordinator and request access to the portal and under available products, “CNS”.

When you have access to the portal, click on “CNS” under Available Production Products.

CNSPortal

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The Fully Paid For Account is a special subaccount within NSCC's Continuous Net Settlement (CNS) System that assists participants in maintaining compliance with possession and control requirements pursuant to Rule 15(c)3-3 of the Securities Exchange Act.

The Fully Paid For Account allows participants to complete settlement obligations based on anticipated same-issue allocations from CNS. Third-party deliveries for credit through the Institutional Delivery (Omgeo) system are facilitated by this CNS subaccount.

The Fully Paid For Account is available for CNS-eligible equities, corporate bonds, unit investment trusts, rights, and warrants.

 

The Fully Paid For Account is available to all NSCC full-settling members and especially benefits those that serve both retail and institutional client bases.

 

The Fully Paid For Account:

  • Doesn't force you to arrange for "iffy" borrows or to wait for expected allocations and separately process third-party deliveries.
  • Expedites and synchronizes street- and customer-side settlement, facilitating cash-flow planning, and reducing interest and carrying costs.
  • Enhances and maintains the protection of your customer securities.

Brokers who are expecting a receive in CNS of a security may make deliveries of customer securities to third parties. If CNS does not allocate the position, the member may convert the right to receive for value into a right to receive for free. To move positions in and out of these accounts, participants submit instructions to NSCC by mid-morning.

On the money settlement side of the Fully Paid For Account, NSCC debits the participants' money settlement accounts for the current market value of long securities positions moved into the Fully Paid For Account.

These debits are accounted for separately. Thereafter, participants' daily net money settlements are adjusted to reflect price changes through daily marks to the market, until CNS security allocations offset positions in participants' Fully Paid For Accounts.

 

Select Fully Paid For.

CNSApp

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Complete the required fields.

CNSFullyPaidFor

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CNS ACATS DTC


No. The changes associated with this project are not optional. If your firm is an ACATS participating broker-dealer, you will have to make these changes.


 

 

CNS Corporate Actions


SMART/Track for CNS Corporate Actions may be accessed via DTCC's Web Portal, formerly known as Web Direct. The URL is https://portal.dtcc.com.

Although SMART/Track for CNS Corporate Actions is part of the SMART/Track for Corporate Action Liability Notification (CALN) Service, it has its own product ID that must be requested in order to gain access to it. The product ID is "CNR" - which stands for "SMART/Track for CNS Corporate Actions."

For access assistance, please contact your internal access coordinator to ensure you have the CNR product. See FAQ #1 to learn where to access CNR.

Yes. Every member of CNS must have at least one staff person from their firm registered for SMART/Track for CNS Corporate Actions. Once implemented, all potential and final liability as well as preliminary and final protect information on a voluntary offer will only be reported to members by NSCC via SMART/Track for CNS Corporate Actions (CNR).

Contact your internal access coordinator for SMART/Track for CNS Corporate Actions. Access coordinators may call 888-382-2721 and select option 5, then option 5. Alternatively, contact your relationship manager.

Contact your internal access coordinator to ensure you possess the proper entitlements for Smart/Track for CNS Corporate Actions. Access coordinators may call 888-382-2721 and select option 5, then option 5. Alternatively, contact your relationship manager.

Information (including terms) about voluntary offers will be available via SMART/Track for CNS Corporate Actions.

NSCC members may call CNS Cashiering at 888-382-2721 option 2, then option 2.

In SMART/Track for CNS Corporate Actions, the CNS reorganization sub-account will be pre-populated; the options available to you are based on the terms of the offer. Generally speaking, the G sub-account will be available for primary offer entitlements while the H sub-account will be available for subsequent offers and/or secondary offer entitlements. Select a sub-account based on your preference.

The standard time to submit instructions on a voluntary offer is from 3:10 p.m. to 6:00 p.m. eastern time on the day prior to the CNS end date for that offer.

The deadline for reducing instructions on a voluntary offer is 12:00 p.m. eastern time on the CNS end date for that offer.

In SMART/Track for CNS Corporate Actions you will be able to view your potential liability via a selection from the main menu.

In SMART/Track for CNS Corporate Actions you will be able to view your final liability via a selection from the main menu.

No. CNS does not know when or if members who have short position(s) will cover their CNS obligations before recycle cutoff.

When a voluntary offer is extended, all elections previously submitted on a long position(s) will become null and void and the new expiration date for that offer will be reflected on SMART/Track for CNS Corporate Actions. Members will be required to re-enter their instructions.

The quantity instructed cannot exceed the total number of shares held in each individual sub-account, inclusive of new trades settling on the next business date. Ultimately, CNS will only accept your liability based on your actual long position held at the close of business on the CNS end date.

You may submit protect instructions for any sub-account provided that you have a long position (or will have a long position) in that sub-account on the day prior to the CNS end date.

No. Any instructions to move shares for a security between CNS sub-accounts (e.g., from Sub-Account A to Sub-Account E) on the CNS end date of a voluntary offer will be rejected by CNS.

Payment may be found on your Miscellaneous Report/MRO and SMART/Track for CNS Corporate Actions.

Generally CNS will set up balance orders three business days prior to the CNS end date of that offer. Balance orders are found on the CNS Night Miscellaneous Activity Report/MRO.

Although SMART/Track for CNS Corporate Actions now offers enhanced processing of voluntary corporate actions, it may be necessary for CNS to issue receive and deliver orders for members to resolve broker to broker.

Receive and deliver orders must be resolved broker to broker. Any receive and deliver orders generated by CNS are reported on your CNS Night Miscellaneous Report/MRO. The passing of liability notifications for non-CNS offers will continue to be processed on the SMART/Track for Corporate Action Liability Notification (CALN) Service as they are today.

 

 

Optional Dividend instructions will now be submitted on a link from the main menu of the SMART/Track for CNS Corporate Actions system. Instructions should no longer be submitted via WINS as they will not be accepted or processed.

Payment in CNS will be allocated concurrently with DTC payment of the optional dividend.

You may continue to view your payments using the CNS Dividend Activity Report/MRO and your CNS Miscellaneous Report/MRO.


 

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