Depository Trust & Clearing Corporation

 

Products & Services

 

Products & Services

Equities Clearance and Settlement

Equities Clearance and Settlement

Correspondent Clearing Service

a service offering of National Securities Clearing Corporation (NSCC)
Correspondent Clearing is a trade capture position movement service that allows a participant to move a position from an executing broker's account (special representative) to a different clearing broker's account (correspondent).

Overview

Correspondent Clearing is a trade capture position movement service that allows a participant to move a position from an executing broker's account (special representative) to a different clearing broker's account (correspondent). This service allows a broker-dealer to use one broker-dealer for an execution and another for clearance and settlement. All NSCC-eligible equities and corporate bonds can be transferred using this service.

Since Correspondent Clearing transfers settlement obligations for correspondents, it mitigates risk by reducing the number of redeliveries as well as the number errors in accounting and settlement.

Who Can Use the Service

The service is available to NSCC members.

Benefits

The service provides a number of operational advantages:

  • Correspondent Clearing allows participants to move a position from an executing broker's account to a different account for clearance and settlement. This service allows a broker-dealer to execute a trade through any other broker-dealer and still settle the trade in its own account.
  • Correspondent Clearing allows users to settle institutional block trades in NSCC's Continuous Net Settlement System, so that one trade can be apportioned to a number of different firms.
  • Intra-day output is reported hourly to participants on the 400-byte universal trade recording machine-readable output.

How the Service Works

Correspondents route trade orders to special representatives to execute trades on their behalf. After the execution, the Special Representatives submit offsetting trade information via Correspondent Clearing to NSCC, thus moving the position to the clearing broker's account. NSCC ensures there is a signed agreement between the special representative and the correspondent prior to accepting the position movement instruction.

Correspondents that are NSCC participants settle trades with NSCC. Both Special Representatives and correspondents receive the Correspondent Clearing Blotters, which itemize the positions submitted into the correspondent clearing service.

For More Information

Please call Relationship Management at 800-422-0582.

 

Last updated December 22, 2009


This description is for informational purposes only. This Service is governed by applicable Rules, Procedures, and Service Guides for each DTCC subsidiary, which contain the full terms, conditions, and limitations applicable to this Service.

Technical Documentation

Who to Call

Customer Service
1.888.382.2721

Membership
1.888.382.2721

Press Contacts
1.212.855.4825

Read More

Settlement Services Web Interface Set to Undergo Extreme Makeover

DTC has begun redesigning its Settlement Services web site to create a platform that will consolidate settlement activity onto a single customizable page.

Read More