Phase 5: Resolution Center
The following list of frequently asked questions has been compiled to assist you:
Q1. If batch PVF, PFF and PNF transactions are sent from a carrier for the same firm, on the same processing day, in which order is the firm going to receive these transactions?
The firm should receive the transactions in the order in which they were sent. The data will be processed in the order in which it is received and the output will be created and transmitted in that same order.
Q2. What validations is I&RS going to perform on PVF/PFF/PNF transactions at the batch level and at the individual transaction level, if any? Are rejects created at the individual transaction level or at the batch level?
I&RS will perform structural validations to verify that each file is structured correctly, following the standards set for the I&RS format. Rejects at this level will cause the entire file to be rejected. Once it has been determined that the file is structured correctly, it will be determined if the sending and receiving party information is correct, after which individual transactions will be validated for format and code standards. The amount of data to be rejected is determined by the level on which the error occurred: File level, contra party level, or transaction level. See e-learning on Positions for more details.
Q3. Will there always be one MSD transaction for every COM, APP/SUB or L&A transaction?
Yes. There will be one separate daily MSD transaction for all COM transactions, one daily MSD transaction for all APP/SUB transactions and one daily MSD transaction for all L&A transactions, except for DSO members, who do not have access to MSD.
Q4. On COM transactions, when is a "CPL" stage code issued by I&RS to the carrier? When the COM transaction was received, validated and passed to the firm or, when settled with an MSD transaction?
COM transactions will be processed and passed to the contra party when money settlement is due. At this time, both the carrier and the contra party will receive the COM transaction with the stage code of "CPL," for completed.
Q5. Does I&RS validate CUSIPs? Is a list of valid CUSIPs available to members?
I&RS will validate CUSIPs against our database of valid CUSIPs for the specific carrier. An updated list of valid CUSIP is posted on the I&RS website weekly.
Q6. Participants are required to receive multiple batches during the day for reject processing. Participants can elect to receive other data once daily. How and where is that specified?
Participants will receive multiple reject files only if multiple input files were submitted and more than one file contained rejects. Currently, the only file with the option of a single batch or multi batch is the Pricing file (AAP), which will be transmitted to contra parties. This choice will be reflected on the Participant Profile.
Q7. Can I&RS process a transmitted file that includes more than one batch of PVF transactions (multiple PVF headers)?
Q8. Can I&RS receive data when the system is not available? The data need not be processed until the system is available (i.e., Saturday after 3:00 P.M. and all day on Sunday).
Yes, although we strongly recommend against this. Data received after the Saturday deadline and on Sunday will be held and processed the next available day. Within each file, dates are validated against the current date. The information must reflect the date the data is actually processed, not the date the file is transmitted.
For stock market holidays and for non-financial products on bank holidays, data will be processed as it is received. Output will take place the next available business day. For financial products, such as APP/SUB, COM and LNA, data will be held for processing on the next business day. Announcements of special processing days will be made through Important Notices and email distribution.
Q9. How does the submitter notify I&RS of an invalid incoming file (i.e., incorrect customer data, incorrect settlement amounts, etc.)? Does the submitter "reject" data and send a corrected file back to I&RS?
There is no facility for systematically notifying I&RS of an invalid file. Once data has been received and validated according to the business rules, all accepted transactions are passed to the receiver, and all transactions that do not pass established edits will be rejected back to the submitter. If the submitter determines the file content is not valid, but transactions pass theedits and are sent on to the receiver, the submitter must contact the receiver directly to take corrective action. If the content of the data is not acceptable to the receiver, the receiver must contact the submitter directly.
Q10. What is the "MSS" transaction? What is that transaction for? Where is it used?
NSCC's Money Settlement System (MSS) provides a file for all participants (with the exception of DSO members) showing the aggregate settlement amount for each service in which the participant takes part. The MSS settlement amount for I&RS transactions will be the same as the total amount contained in the combined MSD files. Participants linked to DTC's Participant Terminal System (PTS) can view this amount along with all other NSCC activity. Participants can choose to receive this Money Settlement file by contacting their relationship manager.
Q11. The Annuity Asset Pricing (AAP) transaction is going to be transmitted daily and distributed to all of a carrier's trading partners. Are you going to send this data to all of our trading partners regardless of whether or not it is needed? How will people use it in conjunction with POV files?
Broker/dealers must choose to receive pricing data and select the carriers who will submit the file to them.. AAP displays the "pure" asset price (analogous to the NAV) of the underlying sub-account and can, therefore, be used in conjunction with POV files to calculate daily contract values and track performance.
Q12. Is the bill sent to the same area that the mutual fund bill is sent?
Participants choose where they wish to have the bill sent and may be distributed to multiple email addresses.
Q13. Does I&RS supply a list of participants with their participant numbers?
A list of participants is also available on the Insurance & Retirement Services Web site. In addition, NSCC distributes weekly Important Notices to its members, highlighting all membership changes. These notices are also posted to NSCC's Web Site.
Q14. In setting up accounts with the settling bank, is it possible for an insurance carrier or broker/dealer to have more than one NSCC settlement account?
One settling bank agreement is arranged for each NSCC membership (with the exception of DSO members). Participants are able to take as many memberships as they wish. However, membership will determine how the account will settle. Any additional memberships for the primary member will roll up to the primary account at the settling bank. In some situations, one carrier family may establish multiple “full” memberships, of which one settling account may be established for each.
Q15. Can I send all of my data (PVF, PFF, PNF, COM, APP, SUB, FAR, and/or ACATS/I&RS) on one file?
PVF, PFF, and PNF transactions can be sent on one file. APP and SUB transactions can be sent on one file. AAP, COM, FAR, LNA and ACATS/I&RS transactions should all be sent on separate files.
Q16. What is the NSCC unique control number and what is it used for?
The NSCC unique control number is used to tie transaction records together during processing, and is needed so that each transaction can be identified for research purposes. It is also used to verify that duplicate transactions are not received and processed in error.
Q17. Does the NSCC control number always have to be unique?
Yes, the NSCC control number must be unique.
Phase 1: Choosing Your Connectivity Option
Phase 2: Selecting your I&RS products
Phase 3: Developing your I&RS interface
Phase 4: Testing
Phase 5: Resolution Center