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.

The key parameters of the SFT Clearing service include:

  • Requirement to submit SFTs to NSCC on a locked-in/matched basis by an approved submitter.
    • All SFT activity has a term with overnight being supported on day 1. Settlements are allowed to pair off daily against new activity  to minimize the operational burden of settling overnight obligations. NSCC calculates and processes price differences/mark-to-market that are created by the daily pair off.
  • 100% in cash collateral is 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 novates and guarantees its final settlement.
  • NSCC generally supports the activity in CNS eligible securities.
  • NSCC processes certain mandatory corporate actions and cash dividends for novated SFTs.

Given the cleared SFT environment creates some changes, vendors have been involved in the product development process. For more information about this service and sponsored membership, contact DTCC at This email address is being protected from spambots. You need JavaScript enabled to view it..

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SFT Clearing Frequently Asked Questions (FAQ)

View frequently asked questions about the SFT Clearing service, including how to access the service. Learn more about the participant roles, system and operational flow, and billing and tax reporting. DTCC is committed to provide informative and responsive information regarding the Securities Financing Transaction (SFT) Clearing service. 
July 11, 2022

SFT Clearing General User Guide

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SFT Clearing Input and Output Message Layouts

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

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

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SFT Clearing: Outstanding Loan MRO AutoRoute ID: Production 02043624 / PSE 02983624

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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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SFT Clearing Testing Guide

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SFT Clearing Dashboard Guide

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

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