Overview

SMART/Track for Buy-ins is a Web-based system that enables automated communication and tracking of NSCC CNS and non-CNS (e.g., NYSE, AMEX, NASD and NSCC Non-CNS) buy-in notices as well as MSRB closeouts. SMART/Track for Buy-ins replaces the buy-in functions on PEX, DTC's Participant Exchange system, and provides additional functionality, including the ability to track a notice throughout its life-cycle. Through the system, participants can easily create, send, process and track buy-in notices.

Who Can Use the Service

The service is currently available for use by any existing NSCC clearing firm or DTC settling member.

Benefits

SMART/Track for Buy-ins supports straight-through processing and enables participants to better manage the buy-in process by providing:

• Tracking functionality with online reporting and real-time status information of open buy-ins
• Online cancellation and updating of a buy-in notice
• Search and sort capability on any field in a buy-in notice
• Audit trail with a complete record of actions taken regarding a notice, including time, date and the person taking the action
• Link to DTC systems to indicate if the security is undergoing a dividend or corporate action or has been chilled for delivery
• Automatic archiving with seven-year record retention easily available online

How the Service Works

In order to register for access to SMART/Track for Buy-ins, participants will need to designate an Access Coordinator. The Access Coordinator Form can be accessed via the below link. For assistance, participants can contact their Relationship Manager of the Service Activation Group at DTCC. Once this is done, the Access Coordinator will register and approve the firm's users.

• Access Coordinator Forms

All functionality that is available on the SMART/Track browser is also available via file transmissions or messages.

SMART/Track for Buy-ins allows users to:

• Create and transmit a notice or retransmit a notice to another counterparty.
• Accept or reject a non-CNS buy-in intent or retransmittal or MSRB closeout.
• Update a buy-in or extend the delivery date for certain buy-ins.
• Cancel a notice within specified time parameters.
• View notices they have received or sent.
• Search for active or archived notices using specific field criteria.

Creating/Retransmitting a Notice

Users can create and transmit/retransmit the following buy-in notices:

• CNS Buy-in Intent
• CNS Buy-in Order
• CNS Buy-in Retransmittal
• CNS Buy-in Execution
• Non-CNS Buy-in Intent
• Non-CNS Buy-in Retransmittal
• MSRB Original Closeout
• MSRB Retransmittal Closeout Notice
• MSRB Execution of Original Closeout Notice
• MSRB Execution of Retransmittal Closeout Notice

The user's contact information, which is gathered via the Access Coordinator Form, is automatically filled on the input screen. Users can then fill in the remaining fields detailing their buy-in information and submit the notice to the system.

SMART/Track has links to DTC's dividend and reorganization systems and indicates on the screen if the security is pending a dividend or reorganization. SMART/Track also indicates on the input screen if the security has been chilled for delivery. Most of the input screens have a free-form field for adding comments or notes to the notice.

SMART/Track for Buy-Ins reviews the data to ensure it is complete and then makes it available to the counterparty indicated.

Responding to a Notice

Participants receiving a non-CNS buy-in notice or MSRB closeout can either accept or reject the notice. If rejecting a notice, the participant must enter a reason for the reject by selecting a reason from the drop-down box or entering text in the comment box.

Updating a Notice or Extending the Delivery Date

The participant initiating a buy-in notice can update a notice. For CNS notices, a participant can change any of the fields up until the notice is sent to CNS.

For non-CNS and MSRB closeout notices, participants can change the quantity, price or amount up to and including the delivery date using the update function. They can also extend the delivery date or delivery using the extend delivery date option.

Canceling a Notice

Participants initiating a buy-in notice can also cancel the notice. For CNS notices, a participant can cancel the notice up until the notice is sent to CNS. For non-CNS and MSRB closeout notices, participants can cancel a notice in any status—pending, accepted or rejected—and the status changes to "canceled."

Viewing a Notice

The status of all notices can be viewed, and all notices can be searched or sorted using specific field criteria as desired by the user. Participants can view a list of notices that they sent or received as well as the details of specific notices, including the history of each notice with the details of when the action was taken, the date and time that action was taken and the person that took the action.

Searching for an Active or Archived Notice

Participants can search for active or archived notices within a specific date range. This includes the ability to search for all notices within that range or to search by notice type. Participants can further search within notice type by specific data fields, including the execution date, settlement date, CUSIP or symbol or counterparty. Notices are automatically archived based on certain date parameters. Archived notices are kept online for seven years.

For More Information

Please call Relationship Management at 888-382-2721.