CNS accounts settle against a single Designated Account. It's therefore technically possible for a Member to deliver securities to NSCC’s CNS account to satisfy a short position in 1 CNS sub-account and receive the same securities from NSCC’s CNS account
CNS accounts settle against a single Designated Account. It's therefore technically possible for a Member to deliver securities to NSCC’s CNS account to satisfy a short position in 1 CNS sub-account and receive the same securities from NSCC’s CNS account in connection with a long position in another
DTCC Notice: NSCC PROPOSED RULE CHANGE – MAKE CERTAIN CLARIFICATIONS AND ENHANCEMENTS TO THE NSCC RULES (SR-NSCC-2022-012)
CNS Delivery Exemptions: Section D of Procedure VII describes the procedures for controlling deliveries to CNS, including the process by which Members may submit instructions to NSCC to indicate which short positions they do not wish to settle and should be exempt from delivery.
CNS accounts settle against a single Designated Depository Account. It is therefore technically possible for a Member to deliver securities to NSCC’s CNS account to satisfy a short position in one CNS sub-account and receive the same securities from NSCC’s CNS account in connection with a long position in another CNS sub-account. However, the Member is not delivering those securities directly to, nor receiving securities directly from, itself, and the Member may also receive securities that have been delivered to NSCC’s CNS account by another Member. This is another potential area of confusion in the procedure that would be addressed by the proposed deletion of this rule text.
