One of The Depository Trust Company (直接转矩)’s primary liquidity risk controls for settlement, the Net Debit Cap (NDC), has recently been increased for individual legal entities to $2.从1美元到150亿美元.80 billion, while keeping the affiliated family limit at $2.850亿年. This increase to the 直接转矩 NDC will create operational and liquidity benefits for participants by reducing their 直接转矩 intraday funding requirement.
直接转矩 calculates the 结算 NDC for each participant based on their settlement activity, and the maximum NDC is set at an amount that is at or below the value of 直接转矩’s liquidity resources. The NDC is one of the safeguards designed to protect 直接转矩’s ability to complete settlement by ensuring there is sufficient liquidity in the event a participant is unable to satisfy its end of day net settlement obligation.
The proposal for this increase came about late in December 2023, when 存 filed to modify the 结算 Service Guide 与美国.S. Securities and Exchange commission (SEC), and requested to increase the maximum NDC by $350 MM for individual participants. 直接转矩’s proposed increase is supported by 直接转矩’s existing available liquidity resources. On Feb 1, 2024, the SEC approved 直接转矩’s proposal. 直接转矩 went live with the increase to the Net Debit Cap on March 8, increasing the industry’s overall operational capabilities.
“We believe the maximum NDC for an individual participant is now better aligned with 直接转矩’s available liquidity resources,” 米歇尔Hillery, General Manager of NSCC's Equity 清算, 直接转矩's 结算 Service and Product Modernization at 存. “We expect the increased cap will benefit participants by improving transaction processing throughput, enabling more transactions to process without the need for participants to provide intraday funding. Delivering participants will also benefit from an overall reduction in pending transactions making credits from transactions available to them earlier in the processing day.”
“We are pleased that the NDC has been increased to meet our clients’ needs,约翰·阿贝尔说, 执行董事, vnsr威尼斯城官网登入管理, Equity Clearance and 结算 服务. “Thirteen client firms are already taking advantage of this new cap increase and we expect other participants to realize the benefits over time.”
客户端s utilizing 直接转矩’s 结算 services are encouraged to closely monitor and efficiently utilize intraday funding and DVP transactions that generate credits in their settlement accounts. Any questions clients have can be directed to 存’s Equity Risk team at (212) 855-2260.