The National Securities Clearing Corp. has developed a new automated service for clearing brokers to establish, monitor and update their relationships with broker-dealers for qualified special representative (QSR) and correspondent clearing transactions.

The new service, called the Automated Special Representative Facility, ends the decades-old practice of clearing firms having to fill out and submit paperwork, known as 9A & 9B forms, to NSCC to establish their relationships.

That paperwork is required for NSCC to accept "locked-in" transactions submitted by clearing firms. NSCC, a subsidiary of The Depository Trust & Clearing Corp., clears transactions for the U.S. equity markets.

The new service allows operations executives at clearing brokers to view the status of their relationships in an electronic, real-time environment.

To help firms more effectively manage their risk, the service allows clearing brokers to designate at the executing broker level which trades they are authorizing from each counterparty’s correspondents.

This is important because it allows a clearing broker to quickly modify or cancel a relationship with a distressed correspondent client to protect itself from assuming counterparty risk.

More than 100 firms have access to the service. Since its launch, seventy seven new relationships have been established via the tool. Members of NSCC can access the web-based system via DTCC Web App Login on Once logged onto the system, members are taken directly to an online dashboard that provides high level details on pending relationship requests submitted by counterparties as well as relationships waiting for approval by counterparties.

“We wanted to make the dashboard as intuitive as possible so users could review the most critical information on a single screen and move among functions quickly,” said Bill Kapogiannis, DTCC’s director for equity and fixed-income clearing. “Approving a relationship is now as easy as checking your notifications and clicking a single button. What’s more, the new search capability makes researching existing relationships that much easier and efficient.”



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