Envelope Settlement Service (ESS) standardizes and controls participant-to-participant physical delivery of securities in the New York metropolitan area. Inter-city Envelope Settlement Service (IESS) standardizes and controls participant-to-participant physical delivery of securities between N.Y. and Toronto.

Overview

Envelope Settlement Service (ESS) standardizes and controls participant-to-participant physical delivery of securities in the New York metropolitan area. Inter-city Envelope Settlement Service (IESS) standardizes and controls participant-to-participant physical delivery of securities between N.Y. and Toronto.

Who Can Use the Service

All qualified and interested NSCC members can use ESS and IESS.

Benefits

The services centralize the physical delivery process, offering industry wide efficiencies in the following way:

• Using the NSCC location as a central drop-off point reduces the number of bonded couriers needed by members, along with associated expenses. Eliminating over-the-window checks and deliveries results in further savings
• The services conveniently net money settlement for physical security deliveries with all other NSCC settlement obligation
• The services use bar-coded tracking and receipt confirmation of all processed deliveries
• Through IESS, users are granted next day credit for deliveries made in Toronto. 

How the Service Works

ESS operates in accordance with a central clearing-house approach, as follows:

• The delivering broker attaches to the securities two copies of the delivery instructions to the receiving broker or brokers and puts them in an ESS envelope.
• Using the PTS function ECSP, the delivering broker prepares a credit list by electronically entering credit list information for each batch of envelopes, which is, in turn, bar-coded with a unique credit list number. Multiple deliveries to one member can be included in a single ESS envelope. These credit lists itemize the receiving members' clearing numbers and the value of each envelope.
• The delivering broker sends a messenger to drop off the envelopes containing securities at NSCC's New York facility. NSCC sorts the envelopes according to receiving members' clearing numbers. NSCC then debits and credits members' respective settlement accounts for the securities to be delivered, based on credit lists provided by the delivering brokers. The system compiles these credits and debits into detailed reports that are distributed later in the day. These reports help members reconcile internal accounts and re-calculate settlement monies with NSCC.
• The service features a reclamation process whereby the receiving broker may return deliveries by reversing the delivery process. In such cases, new reclamation credit lists, entered via PTS function ECSP, must accompany returns, along with Uniform Reclamation Forms, which details the reason for the return

IESS

IESS operates in accordance with a central clearing-house approach, as follows:

• The delivering broker attaches to the securities two copies of the delivery instructions to the receiving broker or brokers and puts the documents in an IESS envelope.
• Using the PTS function ESCP, delivering members electronically enter and print bar-coded credit lists. Each credit list is assigned a unique number identifying the contents of the envelope.
• Members drop off envelopes containing securities at NSCC's New York facility. The envelopes show receiving members envelope location code and clearing numbers. IESS credit tickets are attached to the envelope itemizing clearing numbers and the value of securities in the envelope. Members receive debits and credits to their settlement accounts when deliveries are made

For More Information:

Please call Relationship Management at 1 888.382.2721.