Funds Only Settlement Service (FOSS) centralizes the routing of envelopes that contain money-only charges to full-service participants located in the New York metropolitan area.

Overview

Funds Only Settlement Service (FOSS) centralizes the routing of envelopes that contain money-only charges to full-service participants located in the New York metropolitan area.

FOSS is primarily used for debits and credits that result from mark-to-the-market adjustments. It can also be used for other money-only charges.

Who Can Use the Service

All NSCC settling members located in the New York metropolitan area can use the service.

Benefits

In addition to streamlining participants' internal operations for delivering money-only charges, FOSS offers the following advantages:

• The system provides a standard vehicle for processing funds-only charges, resulting in a more efficient industry process
• FOSS expedites processing by separating envelopes that contain funds-only transactions from those that contain securities
• The service permits firms to identify and adjust incorrect money-only charges. 

How the Service Works

To charge through FOSS, delivering participants use FOSS envelopes, in which charge documentation is enclosed. Clearing numbers of receiving participants are marked on the envelopes, and credit lists (using PTS function ECSP) are attached.

One credit list can be used for up to 15 envelopes. Credit lists must indicate the clearing numbers of the participants to receive the envelopes, the value of each envelope and the total value of the listed items.

FOSS envelopes are sent to NSCC, which issues a receipt for each credit list. Copies of credit lists are returned to the delivering firms' messengers. Envelopes are then sorted and picked up by the receiving participants' messengers. NSCC uses the credit lists to incorporate debits and credits into participants' daily net money settlements.

To reclaim money-only charges, receiving participants attach FOSS reclamation credit lists (using PTS function ECSP) to the envelopes. Original charge documentation and the reasons for the reclamations must be enclosed. The envelopes are sent to NSCC, where they are processed in the same manner as are FOSS deliveries

For More Information:

Please call Relationship Management at 1 888.382.2721.