Exchange-Traded Funds (ETF) Processing

Automate the creation, redemption, clearance and settlement of ETFs and their underlying securities.
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Exchange-Traded Funds (ETF) Processing

Optimize ETF Processing

 
Exchange-Traded Funds (ETFs) are securities that trade like stocks and aim to replicate the performance of a basket of securities, such as a market index – without requiring investors to purchase each individual component. Managing ETF creation and redemption can be complex, especially when underlying securities are not eligible for clearing or when manual processes introduce inefficiencies and risk.  
 
NSCC's ETF Processing service streamlines this process by automating the creation and redemption of ETFs when the underlying securities are eligible for clearing through the National Securities Clearing Corporation (NSCC). The service includes a browser-based tool that displays the ETF’s portfolio constituents and associated cash amounts. Members can download this data as an Excel spreadsheet or receive it as a nightly data file. 
 
When an ETF includes securities that are not NSCC-eligible, NSCC’s ETF processing service allows Members to customize standard portfolios by substituting those securities with cash or with other eligible securities. These customized portfolios can then be used for creation and redemption within NSCC’s system. 
 
NSCC also clears and settles U.S.-listed ETFs traded in the domestic secondary market. ETF Agents and Authorized Participants have access to a self-service web portal to manage relationships and monitor creation and redemption activity.

  • Unique ETF baskets processed, enriched and distributed daily

  • Billion

    Average create/redeem volume processed daily, year-to-date

Data as of Q3 2026

Key Features & Benefits

Timely Trading Decisions

Supports faster decision-making by allowing Members to quickly identify and select the portfolios needed for the next day's trading through a web-based tool, downloadable Excel file, or nightly data feed.

Flexible Portfolio Construction

Provides greater flexibility in portfolio management by allowing Members to create or redeem customized portfolios through the substitution of non-eligible securities with cash or other eligible securities.

Creation & Redemption Visibility

Improves visibility into transactions through detailed reporting that helps Members track and reconcile ETF creation and redemption activity with confidence.

Automation-Driven Efficiency

Reduces operational burden by automating key steps in the ETF lifecycle, minimizing manual processes, lowering the risk of errors and freeing up resources.

Trusted Settlement Infrastructure

Supports reliable post-trade processing by clearing and settling ETFs and eligible underlying securities through NSCC's CNS® and Non-CNS® settlement processes, with eligible transactions backed by NSCC's guarantee.

Operational Efficiency and Risk Reduction

Enhances responsiveness to market needs through next-day and two-day settlement options that support ETF creation and redemption activity.

Who Can Use This Service

Participants

Any full-service NSCC Member that has an Authorized Participant agreement with an ETF Agent and Distributor/Sponsor can use the ETF Processing service. Non-clearing firms may also participate if they have a clearing relationship with an NSCC Member. 

While, in some instances, an ETF sponsor may allow a non-clearing firm to become an Authorized Participant, any firm executing a transaction in an ETF through NSCC must either be an NSCC Member or must have a clearing relationship with an NSCC Member. 

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