Securities Financing Transaction (SFT) Clearing

Welcome to the SFT Clearing section of the Learning Center! The 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). Locate the content that you need by using Search to filter or access Resources to navigate to all of the SFT Clearing content.

The SFT Clearing service introduces central clearing for equity securities financing transactions, including lending, borrowing and Repo to:

  • Support central clearing of institutional clients’ equity SFTs intermediated by sponsoring members.
  • Support central clearing of equity SFTs between full service NSCC members.
  • Maximize capital efficiency and mitigates systemic risks by introducing more membership and cleared transaction opportunities for market participants.

When the SFT Clearing service launches, the key parameters will include:

  • Requirement to submit SFTs to NSCC on a locked-in/matched basis by an approved submitter.
  • All SFT activity will have a term with overnight being supported on day 1. Settlements would be allowed to pair off daily against new activity  to minimize the operational burden of settling overnight obligations. NSCC would calculate and process price differences/mark-to-market that are created by the daily pair off.
  • 100% in cash collateral would be required to settle each cleared SFT. However, a member would be permitted, but not required, to post additional haircut above 100% (for example, 102%) to such clients.
  • SFTs settle RVP/DVP at DTC.
  • Upon the initial settlement of the SFT, NSCC would novate and guarantee its final settlement.
  • NSCC will generally support the activity in CNS eligible securities.
  • NSCC would process certain mandatory corporate actions and cash dividends for novated SFTs.

Given the cleared SFT environment creates some changes, vendors will be involved in the product development process and regulatory approval is required before the SFT Clearing service launches. For more information about this new service and sponsored membership, contact DTCC at This email address is being protected from spambots. You need JavaScript enabled to view it..

Dividend Activity MRO Output: AutoRoute ID Production 02043700 / PSE 02983700

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Dividend with Due Bill Activity MRO Output: AutoRoute ID 02043701 / PSE 02983701

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Miscellaneous Activity (Extended) MRO: AutoRoute ID 02040343 (Night) and 02040331 (Day)

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SFT Clearing Dashboard Guide

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SFT Clearing Frequently Asked Questions (FAQ)

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SFT Clearing General Service Guide

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SFT Clearing Input and Output Message Layouts

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SFT Clearing Testing Guide

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SFT Clearing: Eligible Security File MRO: AutoRoute ID Production 02043626 / PSE 02983626

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SFT Clearing: EOD Mark-to-Market MRO AutoRoute ID: Production 02043623 / PSE 02983623

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