Free positions are positions that are eligible for transaction processing at DTC. They consist of the following:
Net Additions (NA)
Securities that are considered collateral.
Minimum Amount (MA)
Securities that are not considered collateral.
Pending Delivery Account (PDA)
Position in your PDA is reserved for transactions recycling due to risk management control deficiencies. The PDA is used for participants that elect to control their recycling transactions with Recycle Option 2: First In, First Out With Blockage. Position is released from your PDA if the risk management control deficiency changes to allow the transaction to complete, if you manually release it back into your Free Account, or if it is automatically released into your Free Account at the PDA cutoff*.
Pending Transactions Account (PTA)
Transactions that have the PTA indicator turned on and recycle as a result of risk management controls will be reserved in your PTA. Position in your PTA is no longer available for any other transaction that you may initiate. Position is released from your PTA if the risk management control deficiency changes to allow the transaction to complete, if you manually release it back into your Free Account, or if it is automatically released into your Free Account at the PDA cutoff*.
Other positions include positions that are not free, meaning they are segregated or being used as collateral, etc. They consist of the following:
Securities that are used as collateral. They are moved from the pledgor's general free account to the pledgor's pledged account, which prevents these positions from being used to complete other transactions.
The segregated account is an account where participants can protect customer fully-paid-for securities from being used to complete other transactions.
The Investment ID account is used to report information to the IRS about securities bought for investment.
The Reorganization account contains securities that have been affected by some form of voluntary or mandatory reorganization.
Call With Interest
An account where position that has been called is moved to when the call includes principal and accrued interest.
Call Without Interest
An account where position that has been called is moved to when the call includes principal only.
Withdrawal by Transfer
Holding account where position is moved to when the securities have been sent to the transfer agent for re-registration in the participant's or underlying customer's name.
Miscellaneous positions are positions that are in your account but are not calculated in your total position because the positions are either loaned out or viewed as a counter. They consist of the following:
Stock loans are where one participant loans shares to another participant.
A repurchase agreement is an agreement between two parties that allows the seller of securities to later repurchase them at an agreed-upon price.
CNS Short Exemptions (Levels 1 + 2)
Counter to indicate that shares received in should not be released to CNS automatically. Level 1 and level 2 exemptions require a DO to 888 (CNS) in order for the exemption to be lifted; however, level 2 exemptions can also be lifted if the shares received in were from either a bank or a pledge release.
CNS Long Exemptions (Level 4)
Counter to indicate anticipated receives of long allocations from CNS.
Amortized/Accreted CMO Factor
Factor to determine the face value of any type of amortizing security, such as mortgage-backed securities and CMOs.
*For cutoff times, please refer to the Settlement Services Guide.
Note: The Settlement Events window on the Settlement Dashboard displays a list of settlement events, including cutoffs, that have occurred within the current settlement cycle. For more information, see Events.