moving to real-time trade capture; * re-writing the Continuous Net Settlement
(CNS) system; * combining the settlement systems of DTC and NSCC; * introducing an inventory management system for settlement; * real-time trade matching for fixed income securities; * changes in Underwriting services for electronic storage of prospectuses and documents, as well as an electronic eligibility questionnaire, and * other STP capabilities in support of securities loan recalls, corporate action processing and the like.
NSCC's Continuous Net Settlement
(CNS) lowers the risk for market participants by reducing the financial obligations requiring settlement through netting.
Aside from completing trade reporting and processing this activity through its Continuous Net Settlement
(CNS) system, NSCC's risk management systems apply sophisticated tools to monitor the markets, identify stocks with significant price changes, and ensure that members have sufficient funds on deposit to cover intra-day price moves, all the while maintaining contact with both member firms and regulators.
The service will be implemented in two phases: Continuous Net Settlement
(CNS) buy-in intents, orders, re-transmittals and executions will be implemented in the fourth quarter of 2005, and non-CNS buy-in functionality will be implemented next year.
Completed virtually all the planned straight-through processing phase steps, including a major redesign of the Continuous Net Settlement
System and initial Inventory Management System phases, to allow a shorter settlement cycle if the industry decides to move to something less than T+3 settlement.