The Depository Trust & Clearing Corp. (DTCC) is planning to amend the way its clearing agency subsidiaries process continuous net settlement (CNS) transactions. The new method will align CNS processing into the risk management control structure used by the Depository Trust Co. (DTC) to cut risk and boost liquidity efficiencies in the settlement of equities that trade in the U.S.

At present, the securities are moved through a book-entry transfer that is free of payment at DTC, with the related money settlement occurring at DTCC’s other subsidiary National Securities Clearing Corp. DTC will process both aspects of the CNS settlement obligation, moving security positions and credits/debits simultaneously via its settlement system.

Click here for the release from Business Wire.