Correspondent Clearing is a service that allows NSCC Members to move a position from an executing broker (or special representative) account to a different clearing broker (correspondent) account.
Correspondent Clearing allows an NSCC Member broker-dealer to use one broker-dealer for an execution and another for clearance and settlement. Transactions in all NSCC-eligible equities and corporate bonds can be transferred using this service.
The service is available to all full service NSCC Members that have completed the required 9A/9B authorizations, which are available through web-interface.
The service provides a number of operational advantages:
Correspondents and the designated special representative must first establish a trading relationship through NSCC’s Trading Relationship Management system, to ensure that the correspondent broker has permitted the special representative to submit locked-in data on its behalf.
Correspondents can then route trade orders to the designated special representatives to execute trades on their behalf. After the trades are executed, the special representatives submit offsetting trade information via Correspondent Clearing to NSCC, thus moving the position to the clearing broker's account.
Both Special representatives and correspondents receive Correspondent Clearing transactions details through UTC output, which itemize the positions submitted into the correspondent clearing service.
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The latest news updates covering DTCC Correspondent Clearing service. Learn how it makes output available in real-time through Universal Trade Capture messages.
Explore the legal section to download important notices about the Correspondent Clearing service. Learn more about its benefits.
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