Correspondents and the designated special representative must first establish a trading relationship through NSCC’s Trading Relationship Management system, to ensure that the correspondent broker has permitted the special representative to submit locked-in data on its behalf.
Correspondents can then route trade orders to the designated special representatives to execute trades on their behalf. After the trades are executed, the special representatives submit offsetting trade information via Correspondent Clearing to NSCC, thus moving the position to the clearing broker's account.
Both Special representatives and correspondents receive Correspondent Clearing transactions details through UTC output, which itemize the positions submitted into the correspondent clearing service.