Standardizes Trade Comparison and Netting
Ensures consistent comparison, receipt of locked-in trades, and netting for non-U.S. equity transactions traded in U.S. dollars.
Foreign Securities Comparison and Netting (FSCN)
Efficiently Process Non-U.S. Equity Transactions
Managing non-U.S. equity transactions can be complex and resource-intensive, especially when firms must reconcile trade details, calculate settlement obligations, and ensure timely delivery across borders. Without automation and standardization, these processes can lead to inefficiencies, increased risk, and higher operational costs.
The Foreign Securities Comparison and Netting (FSCN) service addresses these challenges by automating the comparison and netting of non-U.S. equity trades submitted to NSCC. FSCN uses a common settlement price to net trades on a bilateral basis as of trade date, significantly reducing the number of settlement obligations and simplifying reconciliation.
Settlement of these securities occurs in U.S. dollars on a three-day cycle (T+3), aligning with standard market practices and ensuring predictability.
Key Features & Benefits
Reduces Physical Deliveries
Calculates a trade date bilateral net to minimize settlement obligations and reduce manual deliveries.
Automatic Instructions for Settlement Efficiency
Generates settlement instructions automatically to streamline post-trade operations and improve settlement efficiency.
Accurate Final Settlement
Calculates and collects cash adjustments to account for differences between trade value and common settlement price to support accurate final settlement.
Simplified Reconciliation
Assigns a common settlement price for trades in the same issue and date, simplifying reconciliation and reducing discrepancies.
Unified View of Obligations
Provides consolidated trade summaries to give participants a clear view of netted positions and delivery obligations across markets.
Who Can Use This Service
Full-Service NSCC Members
FSCN is available to all full-service NSCC Members that process non-U.S. equity transactions and require automated trade comparison and netting.
Resources
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NSCC File Formats
Access technical specifications, file formats and implementation resources that support FSCN processing.
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Universal Trade Capture (UTC)
Learn about Universal Trade Capture (UTC), which supports FSCN by accepting foreign security transactions and providing detailed trade reporting.
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Reference Documentation
Explore important notices, regulatory rule filings, bylaws, risk management information and operational requirements from DTCC and its clearing agencies.