National Securities Clearing Corporation (NSCC)

Established under the regulatory oversight of the U.S. Securities and Exchange Commission (SEC) in 1976, the National Securities Clearing Corporation (NSCC) operates as a registered clearing corporation. It serves as a subsidiary of the Depository Trust & Clearing Corporation (DTCC), playing a vital role in providing clearing, settlement, and risk management services to the financial industry in the United States. With its primary objective of facilitating secure and efficient transactions, the NSCC enables registered brokers to streamline their buy and sell positions through multilateral netting. This process consolidates these positions into a single payment obligation, effectively reducing exposure and lowering the financial capital requirements for the participating brokers.