Products & Services

Equities Clearance and Settlement

Correspondent Clearing Service

a service offering of National Securities Clearing Corporation (NSCC)

Correspondent Clearing Service is a trade-reporting service that processes equity and corporate bond transactions executed by NSCC members (special representatives) on behalf of other participants (correspondents).

Product Information

Overview
Who can use the service
Benefits
How the service works
For more information
Membership

Overview

Correspondent Clearing transfers settlement obligations to correspondents, eliminating the need for redeliveries and decreasing the number of possible errors in accounting and settlement.

Who can use the service

The service is available to all NSCC members.

Benefits

The service provides a number of operational advantages:

Through Correspondent Clearing, non-exchange members can have trades settle in their accounts
Correspondent Clearing offers a means to settle trades executed in any market through special representatives
The service provides centralized settlement for a wide range of securities activity
Correspondent Clearing gives users the capability of settling institutional block trades in NSCC's Continuous Net Settlement System, so that one trade can be apportioned to a number of different firms
U.S. firms can use this service to settle trades executed on behalf of members of the Canadian Depository for Securities (CDS) Limited; NSCC transfers settlement obligations to the appropriate CDS accounts

How the service works

Correspondents initiate transactions by routing buy and sell orders to special representatives to execute trades on behalf of the correspondents. Special representatives are responsible for submitting trade information via Correspondent Clearing to NSCC and for entering any trade corrections.

Correspondents that are NSCC participants settle trades with NSCC. Both special representatives and NSCC correspondents receive Correspondent Clearing Blotters, which itemize trades executed on behalf of correspondents.

For more information:

Please call Relationship Management at 1 888.328.2721.

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.