What is 'National Securities Clearing Corporation - NSCC'

A subsidiary of the Depository Trust & Clearing Corporation (DTCC) that provides centralized clearing, risk management, information and settlement services to the financial industry. The NSCC offers multilateral netting so that brokers can offset buy and sell positions into a single payment obligation, thereby reducing financial exposure and capital requirements.

Explaining 'National Securities Clearing Corporation - NSCC'

The National Securities Clearing Corporation was established in 1976 and is a registered clearing corporation regulated by the U.S. Securities and Exchange Commission (SEC). Before its inception, huge demand of paper stock certificates were a reality for stock brokerages, causing the stock exchanges to close once a week. To overcome this problem, multilateral netting was proposed, leading to the formation of the NSCC. The corporation serves as a seller for every buyer, and buyer for every seller for trades settled in U.S. markets.


The NSCC and DTC (another subsidiary of the DTCC) play a major part in the settlement and clearing of securities transactions. They are the largest providers of these services, worldwide.

Further Reading

The Development of the Government Securities Clearing Corporation
papers.ssrn.com [PDF]
… For example, exchange traded equity options have been issued, cleared, and settled, by one central … the securities business has always been the domain of the banks" (Financial Times, March 12 … Disarray in the securities markets in October 1987 was reported by all the major …

The economics of naked short selling
heinonline.org [PDF]
… For example, exchange traded equity options have been issued, cleared, and settled, by one central … the securities business has always been the domain of the banks" (Financial Times, March 12 … Disarray in the securities markets in October 1987 was reported by all the major …

Cross-border securities clearing and settlement infrastructure in the European Union as a prerequisite to financial markets integration: challenges and perspectives
papers.ssrn.com [PDF]
… For example, exchange traded equity options have been issued, cleared, and settled, by one central … the securities business has always been the domain of the banks" (Financial Times, March 12 … Disarray in the securities markets in October 1987 was reported by all the major …

Guiding Global Finance
www.jstor.org [PDF]
… For example, exchange traded equity options have been issued, cleared, and settled, by one central … the securities business has always been the domain of the banks" (Financial Times, March 12 … Disarray in the securities markets in October 1987 was reported by all the major …