FSCN

The Foreign Securities Comparison and Netting (FSCN) service automates the comparison and receipt of locked-in trades and bi-lateral netting of non-U.S. equity transactions that are submitted to NSCC.

• About

  The FSCN service uses a common settlement price to net trades on a bi-lateral basis on trade date. Money settlement of these securities is in U.S. dollars and occurs on a three-day cycle.  .

• Who Can Use the Service

  The service is available to all NSCC full service Members.

• Benefits

  • FSCN standardizes and automates the comparison and receipt of locked-in trades and netting for non-U.S. equity transactions traded in dollars.
  • FSCN calculates a trade date bi-lateral net to reduce the number of physical deliveries required for settlement.
  • NSCC generates and distributes receive and deliver instructions on the morning after receipt.

• How the Service Works

  The Universal Trade Capture (UTC) application may accept Foreign Security Netting transactions from all markets, upon request.

  In addition to UTC output, NSCC generates an FSCN data output report the morning after the trade is received. On the same morning, NSCC calculates a bi-lateral trade net and reports netted positions to participants. The Consolidated Trade Summary provides Members with a security total by market and issue receive and deliver security orders across markets for foreign security trades.

  Trades in the same issue with the same settlement date are assigned a common settlement price.  NSCC calculates cash differences between the common settlement price and the actual trade value. On settlement date, NSCC collects the clearance cash adjustments and includes this amount on Members' final settlement statements.  Members will then settle the trades for value in the local market.

• For More Information

  To request additional information, please click here.