Depository Trust & Clearing Corporation
 

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Products & Services

Wealth Management Services

Wealth Management Services

Commission Settlement

a service offering of National Securities Clearing Corporation (NSCC)
Commission Settlement is the most efficient method for funds to transmit commission and fee data to financial services firms. The service also allows firms active in retirement planning to process broker-to-broker transactions in the same efficient manner as fund-to-broker commissions.

Overview

Commission Settlement is the most efficient method for funds to transmit commission and fee data to financial services firms. The service also allows firms active in retirement planning to process broker-to-broker transactions in the same efficient manner as fund-to-broker commissions. Using a standard format in NSCC's centralized processing environment, the service supports all types of fund commissions, including Contingent Deferred Sales Charge (CDSC) payouts, 12b-1 fees (or trail commissions), and other types of payments. Settlement occurs through NSCC's settlement system.

Commission Settlement is accessible via CPU-to-CPU links, or through DTCC WebDirect, a Web interface that allows participants direct access over the Internet to services provided by DTCC's subsidiaries.

Who Can Use the Service

Any interested financial organization that meets NSCC qualifications can use the service. Commission Settlement requires that participants be qualified to settle at NSCC.

Benefits

  • Expedites the distribution and settlement of fund commissions.
  • Simplifies the reconciliation process by providing standardized formats for the exchange of records between funds and firms.
  • Offers firm-to-firm payments of retirement plan and other types of commissions.
  • Reduces costs associated with manual processing of commission payments.
  • Accommodates single-batch processing.
  • Consolidates money settlement with other NSCC activity.

How the Service Works

  • Input from Funds: Single-batch files are sent to NSCC for processing by 10 a.m., Monday through Saturday. Errors can be corrected through a reversal of the transmission by the fund.
  • Output to Firms:  Two single-batched files of detailed and summary commission data are sent to firms after 11 a.m., Monday through Saturday.
  • Settlement:  Settlement for commission files transmitted to NSCC by 2 p.m. occurs the following day. One day prior to settlement date, NSCC notifies both funds and firms of their commission settlement obligation. Commissions are netted with other NSCC activity at the end of the day, and settlement takes place in Fed Funds.

For More Information

Please contact Wealth Management Services Marketing at (212) 855-8877.


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

Customer Information

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Who to Call

Customer Service
1.888.382.2721

Membership
1.212.855.8877

Press Contacts
1.212.855.5472

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