NSCC's ETF process automates the creation and redemption of ETFs when the underlying securities are eligible to be cleared through NSCC. NSCC reports, clears and settles ETFs and their underlying securities through its creation/redemption process. NSCC’s ETF processing service includes a web based tool that displays the ETF’s portfolio constituents and relevant cash amounts. The data in this browser-based application can be downloaded by Members as an excel spreadsheet. Members may also elect to receive a data file of the same portfolio information.
In the event the securities underlying an ETF are not NSCC-eligible, NSCC’s ETF processing service allows Members to customize standard portfolios by excluding those securities and substituting those securities with cash or with another NSCC-eligible security. The customized portfolios can then be used to create and redeem the ETF within NSCC’s ETF processing.
NSCC also clears and settles U.S. listed ETFs that are traded in the domestic secondary market. In addition, ETF Agents and Authorized Participants have access to a self-service web based tool that enables them to monitor and maintain relationships in connection with these creation and redemption transactions.