DTCC Connection

Feb 01, 2011 • DTCC Connection

SAB Glossary

Here is a description of some of the terms mentioned by the co-chairs of the Settlement Advisory Board.


Chilled security: A security that has a transaction restriction placed on it by DTC. The reason for the restriction could be related to operational, risk management and/or regulatory and compliance concerns.


Frozen letter: A letter submitted by a DTC participant asking that the delivery of a chilled security be made from one DTC participant account to another.


ID Net: A service that streamlines clearance and settlement, cuts customer costs and reduces fails associated with affirmed institutional equity trades.


Obligation Warehouse: An enhanced fail reconfirmation and pricing service from NSCC that will provide automation for the processing of ex-clearing trades and other open obligations and for the management of fails. It will be replacing NSCC’s Reconfirmation and Pricing Service (RECAPS).


Settlement Web reengineering: A new settlement interface that is being developed to produce a simpler and more customer-friendly Settlement Web. This new Settlement Web, the first phase of which is currently undergoing pilot testing, is scheduled to be rolled out to all customers in late February 2011. It will include expanded spreadsheet download and upload capabilities, improved navigation and a customizable settlement dashboard.


Principal & Income (P&I) and Settlement Progress Payment (SPP ) withdrawals: Services that give customers intraday access to available SPP funds and to P&I payments that DTC has received from paying agents and has allocated to participants’ settlement accounts. P&I payments include dividend, interest and other periodic payments, as well as reorganization and redemption payments.


Receiver Authorized Delivery (RAD): An approval mechanism that allows a receiving participant to review a transaction prior to it being sent on for processing. The service limits customers’ exposures from misdirected or erroneously entered deliver orders, payment orders and pledges.


Settlement Progress Payment (SPP): An intraday funds transfer sent via Fedwire to a DTC participant account to allow a participant to continue to receive deliveries and avoid having its transactions recycle. Participants employ SPPs when they have reached their net debit cap or have insufficient collatera


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