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ETF Important Notices

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Exchange Traded Funds Impact on May 9, 2013 (4/2/2013 #A7609)  Published Popular #

As announced in Important Notice #A7429-P&S6999, dated May 24, 2012 and Important Notice #A7573-P&S7143 dated January 25, 2013, NSCC plans to implement a new Exchange Traded Funds (ETF) system on the evening of processing date May 9, 2013 along with below listed enhancements to legacy functionality and print image output from NSCC. Legacy MachineReadable input and output formats will not be impacted. These enhancements apply to all ETF participants, including those that have not converted to the new ETF input and output format by May 9th .


Exchange Traded Funds Participant Testing - March 2013 (1/25/2013 #A7573)  Published Popular #

As announced in Important Notice #A7429-P&S6999, dated May 24, 2012, NSCC plans to implement a new Exchange Traded Funds (ETF) system on the evening of processing date May 9, 2013. This enhancement was originally scheduled for implementation in Q1 2013, but was delayed due to Hurricane Sandy. The new system will enhance NSCC’s Portfolio Composition File (PCF) reporting and the ETF Create / Redeem processes. NSCC will continue to support the legacy input and output file formats until the end of Q3 2014 after which, with prior notice, NSCC will retire the legacy application and support enhanced ETF formats and functionality only.


Rule Filing SR-NSCC-2012-07 - Elimination of the Exchange Traded Funds Creation and Redemption Unit Pre-Net and Technical Changes to the Rules (05/09/2012 #A7482)  Published Popular #

On September 4, 2012, National Securities Clearing Corporation (“NSCC”), submitted a proposed rule filing, SR-NSCC-2012-07, to the U.S. Securities and Exchange Commission pursuant to Rule 19(b)(3)(A) of the Securities Exchange Act of 1934. The proposed rule change amends NSCC’s Rules and Procedures (the “Rules”) to: (a) eliminate the pre-netting by NSCC of Exchange-Traded Fund (“ETF”) creation and redemption instructions (a.k.a. creation unit netting) prior to the multi-lateral netting process used for Continuous Net Settlement (“CNS”) and non-CNS (balance order) processing, and (b) effect certain technical changes. The proposed rule change will become effective with processing date September 20, 2012.


Rewrite of Exchange Traded Fund System (5/24/2017 #A7429)  Published Popular #

Subject to SEC approval, NSCC is enhancing its Exchange Traded Fund (ETF) system in order to meet the needs of the changing marketplace and to accommodate future growth. These enhancements will be available in early Q1 2013. This notice provides members with early notification of the changes NSCC plans to implement.


Exchange Traded Funds Web Interactive Guide & Other User Documentation (01/23/2012 #A7361)  Published Popular #

DTCC has updated its Clearance Services Learning Center to include information on NSCC’s processing of Exchange Traded Funds. The important notice contains an ETF web interactive guide as well as additional documentation on how NSCC processes ETFs. The Learning Center ETF segment contains information on ETF Fundamentals and a segment on NSCC’s Creation and Redemption process.


Exchange Traded Funds Cash Amount Processing & Mark-to-Market Clearing Fund Modifications (01/05/2012 #A7348)  Published Popular #

Effective with processing date Friday, February 24, 2012, NSCC will modify the processing of cash amounts for component based Exchange Traded Funds created or redeemed (bursted) through the NSCC Clearing process. In order to more closely reflect the value of the ETF to its closing price on trade date, the create / redeem process for standard and custom based portfolios will be modified to include the cash amount (excluding the transaction fee) in the contractual value of the created or redeemed ETF.


Correction to Record Layout Provided in NSCC Important Notice A#6660-P&S#6230 (07/10/2009 #A6845)  Published Popular #

On July 18, 2008, NSCC issued Important Notice A#6660−P&S#6230, which announced NSCC’s plans to enhance its Exchange Traded Fund (ETF) service to (1) support creates and redeems with “cash” consideration and (2) provide shortened a settlement cycle (T+1 and T+2 settlement).

One of the record layouts within that notice had an incorrect record field. This important notice provides the correct field in the record layout.


Approval of Rule Change SR-NSCC-2008-07 (Processing Enhancements for Exchange-Traded Funds) (10/01/2008 #A6719)  Published Popular #

The Securities and Exchange Commission (“SEC”) has approved NSCC rule filing SR-NSCC-2008-07 relating to proposed enhancements in the processing of index receipts (i.e. shares in exchange-traded funds (“ETFs”)) .


NSCC Enhances its Exchange Traded Fund (ETF) Process to Support both Cash Components and Shortened Settlement Processing REVISED (07/18/2008 - #A6660)  Published Popular #

NSCC plans to enhance its Exchange Traded Fund (ETF) service to (1) support creates and redeems with “cash” consideration and (2) provide shortened a settlement cycle (T+1 and T+2 settlement) Subject to SEC approval, it is anticipated that these enhancements will be available beginning September 30, 2008. In order to meet the needs of the changing ETF marketplace, NSCC is expanding its create and redeem service to allow Agent Banks (‘Agents’) and, their subscribers’, to process creates and redeems through NSCC which currently are processed ex-clearing. Participants that do not intend to process creates and redeems on a shortened settlement cycle, or for cash, are not required to make any update as this service is optional.


Supplemental Exchange Traded Funds Portfolio Composition File Processing (11/23/2007 #A6531)  Published Popular #

Effective with Exchange Traded Fund (ETF) processing of Monday, December 10, 2007, NSCC will begin accepting Supplemental Portfolio Composition Files (PCFs).


Elimination of Legacy Portfolio Composition (PCF) formats for Exchange Traded Funds (ETF) (06/11/2007 #A6464)  Published Popular #

Effective on processing date July 31, 2007, NSCC will eliminate the transmission of its legacy Exchange Traded Fund (ETF) Portfolio Composition Files (PCF). NSCC has continued to provide the legacy domestic and foreign PCF’s as a courtesy to participants who were unable to complete their systemic changes. NSCC will no longer support transmission of both the old and the new enhanced formats. Therefore the legacy PCF / ETF formats will be discontinued on July 31, 2007.