The National Clearing & Settlement System (NCSS) provides significant relief to the respective clearing houses of the three Stock Exchanges as well as Clearing Members (CMs). This system facilitates the clearing & settlement of all trades and transactions, carried out at all the three Stock Exchanges, by way of providing following value added services through a single settlement entity:
Cross Exchange Netting
Netting of securities and cash obligations of trades and transactions of a CM having multiple memberships aligned with his CM ID; Broker-to-Broker (BTB) transactions between members of different Exchanges; and Institutional Delivery System (IDS) transactions affirmed by non-broker CMs with members of different Exchanges.
Broker-to-Broker Delivery System
BTB delivery module to facilitate Arbitrage Transactions between broker CMs of different Exchanges; and transactions done by a broker CM who is the member of an Exchange, on behalf of the CM who is member of another Exchange.
Institutional Delivery System
IDS to facilitate non-broker CMs for direct settlement of their trades/transitions based on ready market, and future market.
Margin Financing Module
Margin Financing (MF) module to facilitate margin trading whereby Broker CMs can arrange funds from other Broker/ Non Broker CMs based on their purchases.
Fully Automated Pay & Collect System
Fully Automated Pay & Collect System to enable automated money settlements; same day credits to CMs; settlements net of clearing obligations, squaring-up obligations and tariff etc; and single net settlement for CMs who are members of more than one stock exchange.
Netting of Future Market Transactions with Regular Market Trades
Clearing and settlement of net buy or net sell positions of CMs in each security at the end of Future Contract Period.
Tariff Collection through Pay & Collect
Presently the tariff collections under this system are made on monthly basis.
Risk management of trades/transactions based on ready market, affirmed through IDS module of NCSS by the Non-Broker Clearing Members i.e. Institutional Clearing Members.
Registration of Unique Identification Numbers (UINs)
Automated Handling of Corporate Actions of Securities held in CDS Blocked Accounts
Clearing & Settlement facility through NCSS for the trades/transactions executed on Unified Trading System (UTS) platform of LSE and ISE.
