This learning content will familiarize you with the features and functionality of NSCC's Exchange Traded Fund (ETF) process.
About ETF covers the basics about NSCC's ETF service. ETF Processing explains the PCF creation/submission process. The ETF Portfolio Portal and ETF Historical sections provide detailed walkthroughs of tasks performed using the ETF Portfolio...
The table below provides details about the types of ETFs in existence as of this writing.
Most common type.
Attempts to replicate the performance of a market index, for example, the S&P 500.
Daily leveraged or inverse ETFs.
Use replication, representative sampling, aggressive sampling.
Invests in commodities...
The following tables depict the ETF timeline from T-1 through T+2 (Settlement Day):
Responsibility on T-1
The fund manager or the issuer sends a portfolio listing file (PLF) to the index receipt agent.
Index Receipt Agent (ETF Agent)
Sends NSCC a portfolio composition file for each...
Facts About Exchange Traded Funds (ETF)
ETFs trade on an exchange as an equity
NSCC’s ETF process automates the creation and redemption of ETF securities
NSCC reports, clears and settles ETFs and its underlining securities through its creation/redemption process
ETF processing also includes a nightly distribution of domestic, foreign and fixed income portfolio information
Any full service NSCC Member that has entered into an Authorized Participant agreement with an ETF Agent and Distributor/Sponsor to become an Authorized Participant can use NSCC’s ETF processing service.
While, in some instances, an ETF sponsor may allow a non-clearing firm to become an Authorized Participant, any firm executing a transaction in an ETF through NSCC must either be an NSCC...
On the day before Trade Date (T-1), Members can view the details of an ETF portfolio composition either through a web-based application or in a data file. The data file also identifies the cash amount in each portfolio and other relevant information.
On Trade Date (T), Members can place a creation/redemption order through the Distributor. The Distributor will deliver the order to the ETF...
Virtually every U.S. listed ETF’s portfolio are on the files including the converted HOLDRs product to an ETF structure. Exchange Traded Notes and ETFs that are backed by physical commodities, such as GLD and SLV are unavailable because there isn’t a port folio to distribute.
Yes. Locate input and output record layout information, including canned test data in the NSCC File Formats for ETF section.You can also download the following links:
ETF Historical File Specification
NSCC’s ETF process provides the following efficiencies and risk controls around the creation and redemption of ETFs:
Provides Members with the ability to select only the portfolios they need for next day’s trading through a web based on-line view. Through this mechanism, Members may down load the portfolio details to an excel spread sheet format. In addition, Members may continue to...
To contact DTCC's customer service center: 1-888-382-2721.
For international calls: +1-212-855-8099.
ETF application testing and assistance
ETF Production assistance
File delivery issue
Password reset assistance
All the cash amounts are submitted to NSCC by the ETF Agents and NSCC redistributes the information to its subscribers. We cannot validate the Issuer, Sponsor or the Agents calculation. However, Key Definitions beyond what is available in our file formats is included in this document. Should you need additional information as to a particular calculation please contact the ETF Agent or Issuer...
Are ETFs Regulated?
ETFs are regulated by the SEC and were granted exemptive relief under the following acts:
The Securities and Exchange Act of 1934
Enables broker/dealers and others to bid and offer shares in the secondary market.
The Investment Company Act of 1940
Enables shares to trade on an exchange at prices other than the net asset value (NAV).
Enables ETF shares to be...
When a new ETF is added to the PCF file you will see a new Portfolio Header (Type 2) that introduces the portfolio. There may be instances where a sponsor and ETF agent provide the portfolio before it has begun trading. When new components are added to an ETF's portfolio in the PCF file, the Component Record (Type 3) New Security Indicator field will contain an "N."
The ETF agent may submit either the ISIN or SEDOL number. In most instances ETF agents will provide both. If one of the values is not submitted for a component we generate a zero for that component. If the component does not have a registered ISIN or SEDOL number the agent and product sponsor may provide a “dummy” value. NSCC only validates components that are registered as a U.S. security...
This is a decision made by the product sponsor and the ETF Agent. Generally, if the basket components are ineligible to clear through DTC they will be noted as an "F" in the Foreign and Domestic Field in the Portfolio Composition File. In the case of ETFs that contain corporate, municipal, mortgage-backed and U.S. Government fixed income securities, they will be almost always on the Portfolio...
When NSCC does not receive a component based PCF from the Index Receipt Agent, we use the previous day's PCF and zero out the fund values. All the porfolio header records are zero. The only portfolio header records that are not zero are the CUSIP number and number of components. For Domestic portfolios, this alerts subscribers that the previous business days file will be used should any...
Additional file details are available in documents available on dtcc.com – follow the link below and click on "ETF" (you may need to scroll down) to reveal/access them.http://dtcc.com/clearing-services/equities-clearing-services/user-documentation/client-center-formats/file-formats.aspx
You may receive files in two ways, either through pulling the data (get) or by DTCC pushing the data to you. Available protocols include:
File Transfer Protocol (FTP) “get” of the data via broadband through the Internet.
TCPI = FTP push via the Internet (encrypted)
TCP = FTP push via DTCC SMART Circuit
NDM (Network Data Mover) over DTCC SMART Circuit
Occasionally, there are ETF portfolios that have components that are experiencing a corporate action and in order to process the portfolio we must derive a user ticker symbol and CUSIP. These user tickers may include ZZZZ’s or XXXX’s at the end of the symbol or contain numerics.
This section is dedicated to Exchange Traded Funds (ETF) NSCC file formats, user guides, historical MRO file specifications, important notices, and sample reports. Login to view this content.
NSCC File Formats for ETF
ETF Historical MRO File Specifications
ETF Important Notices
ETF Sample Reports