Payment Orders

DTC's Payment Order service allows you to settle money payments for transactions that were processed separately through DTC either earlier that same day or on the previous day. Unlike deliver orders (DOs), payment orders (POs) involve no securities, only money.

There are several types of payment orders at DTC.

• Security Payment Orders (SPO) are used to collect a mark-to-market payment based on the difference between the current and previous market values of an open securities contract.
• Premium Payment Orders (PPO) are used to collect a net option contract premium for an opening writing or closing purchase transaction.
• SFTs or securities financing transactions are a newer type of payment order. SFTs are securities lending transactions where parties exchange equity securities against cash and simultaneously agree to exchange the same securities and cash, plus or minus a rate payment, on a future date. Settlements would pair off daily against new activity, with NSCC calculating and processing price differential payment amounts that are created by the daily pair off and processed through DTC.

For more information:

• Settlement Web Help. Refer to the Payment Order section
• Securities Financing Transaction (SFT) Clearing