|
Once a trade has been executed, records will be sent to National Securities Clearing Corporation (NSCC®) for clearance and settlement. All trading activity is transmitted to NSCC via computer as "locked in" transactions; meaning a computer has already matched the details of the trades from buyer and seller. Trades executed will be routed to NSCC for settlement via the Regional Interface Organization (RIO).
It is necessary for clearing firms to become NYSE Arca Equity Trading Permit (ETP) holders to clear trades on behalf of exchange participants. For example, broker/dealers who want direct access to NYSE Arca are required to register as Equity Trading Permit (ETP) holders. If not self-clearing, the broker/dealer must provide the name of the entity providing clearing services to the applicant. The clearing firm must also be an ETP holder. Additional agreements are required if the clearing firm would also like to be able to direct orders to NYSE Arca.
 NYSE Arca's Clearing Information and Guidelines (pdf)
|
