NATIONAL 
                  SECURITIES 
                  CLEARING 
                  CORPORATION 
        
       
         RULES & PROCEDURES 
       
       
       
       
       
       
       
       
                               
                               
                               
                               
                               
                              Effective September 1, 2022 
                           
                                              
                     TABLE OF CONTENTS 
      NATIONAL SECURITIES CLEARING CORPORATION RULES ................................... 1 
      RULE 1.  DEFINITIONS AND DESCRIPTIONS ............................................................. 1 
      RULE 2.  MEMBERS, LIMITED MEMBERS AND SPONSORED MEMBERS ............. 34 
      RULE 2A.  INITIAL MEMBERSHIP REQUIREMENTS ................................................ 38 
      RULE 2B.  ONGOING MEMBERSHIP REQUIREMENTS AND MONITORING ........... 45 
      RULE 2C.  SPONSORING MEMBERS AND SPONSORED MEMBERS ..................... 53 
      RULE 2D.  AGENT CLEARING MEMBERS ................................................................ 66 
      RULE 3.  LISTS TO BE MAINTAINED ......................................................................... 76 
      RULE 4.  CLEARING FUND ......................................................................................... 79 
      RULE 4A.  SUPPLEMENTAL LIQUIDITY DEPOSITS ................................................. 88 
      RULE 5.  GENERAL PROVISIONS .............................................................................. 93 
      RULE 6.  (RULE NUMBER RESERVED FOR FUTURE USE) ..................................... 95 
      RULE 7.  COMPARISON AND TRADE RECORDING OPERATION 
           (INCLUDING SPECIAL REPRESENTATIVE/INDEX RECEIPT 
           AGENT) ....................................................................................................... 96 
      RULE 8.  BALANCE ORDER AND FOREIGN SECURITY SYSTEMS ...................... 101 
      RULE 9.  ENVELOPE SETTLEMENT SERVICE ....................................................... 102 
      RULE 10.  FAILURE TO DELIVER ON SECURITY BALANCE ORDERS ................ 108 
      RULE 11.  CNS SYSTEM ........................................................................................... 109 
      RULE 12.  SETTLEMENT ........................................................................................... 115 
      RULE 13.  EXCEPTION PROCESSING ..................................................................... 120 
      RULE 14.  TRANSFER TAXES .................................................................................. 121 
      RULE 15.  ASSURANCES OF FINANCIAL RESPONSIBILITY AND  
           OPERATIONAL CAPABILITY................................................................... 122 
      RULE 16.  (RULE NUMBER RESERVED FOR FUTURE USE) ................................. 124 
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      RULE 17.  FINE PAYMENTS ..................................................................................... 125 
      RULE 18.  PROCEDURES FOR WHEN THE CORPORATION CEASES TO 
           ACT ............................................................................................................ 126 
      RULE 19.  MISCELLANEOUS RIGHTS OF THE CORPORATION ........................... 132 
      RULE 20.  INSOLVENCY ........................................................................................... 133 
      RULE 21.  HONEST BROKER ................................................................................... 134 
      RULE 22.  SUSPENSION OF RULES ........................................................................ 135 
      RULE 23.  ACTION BY THE CORPORATION ........................................................... 136 
      RULE 24.  CHARGES FOR SERVICES RENDERED ................................................ 137 
      RULE 25.  CROSS-GUARANTY OBLIGATION ......................................................... 138 
      RULE 26.  BILLS RENDERED ................................................................................... 139 
      RULE 27.  ADMISSION TO PREMISES OF THE CORPORATION – POWERS 
           OF ATTORNEY, ETC. ............................................................................... 140 
      RULE 28.  FORMS...................................................................................................... 142 
      RULE 29.  QUALIFIED SECURITIES DEPOSITORIES ............................................. 143 
      RULE 30.  (RULE NUMBER RESERVED FOR FUTURE USE) ................................. 144 
      RULE 31.  (RULE NUMBER RESERVED FOR FUTURE USE) ................................. 145 
      RULE 32.  SIGNATURES ........................................................................................... 146 
      RULE 33.  PROCEDURES ......................................................................................... 147 
      RULE 34.  INSURANCE ............................................................................................. 148 
      RULE 35.  FINANCIAL REPORTS ............................................................................. 149 
      RULE 36.  RULE CHANGES ...................................................................................... 150 
      RULE 37.  HEARING PROCEDURES ........................................................................ 151 
      RULE 38.  GOVERNING LAW AND CAPTIONS ....................................................... 155 
      RULE 39.  RELIANCE ON INSTRUCTIONS .............................................................. 156 
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            RULE 40.  WIND-DOWN OF A MEMBER, FUND MEMBER OR INSURANCE 
                     CARRIER/RETIREMENT SERVICES MEMBER ....................................... 158 
            RULE 41.  CORPORATION DEFAULT ...................................................................... 160 
            RULE 42.  WIND-DOWN OF THE CORPORATION................................................... 164 
            RULE 43.  (RULE NUMBER RESERVED FOR FUTURE USE) ................................. 174 
            RULE 44.  DELIVERIES PURSUANT TO BALANCE ORDERS ................................ 175 
            RULE 45.  NOTICES ................................................................................................... 177 
            RULE 46.  RESTRICTIONS ON ACCESS TO SERVICES ......................................... 178 
            RULE 47.  INTERPRETATION OF RULES ................................................................ 180 
            RULE 48.  DISCIPLINARY PROCEEDINGS .............................................................. 181 
            RULE 49.  RELEASE OF CLEARING DATA AND CLEARING FUND DATA ........... 182 
            RULE 50.  AUTOMATED CUSTOMER ACCOUNT TRANSFER SERVICE .............. 183 
            RULE 51.  OBLIGATION WAREHOUSE ................................................................... 193 
            RULE 52.  MUTUAL FUND SERVICES ..................................................................... 195 
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                       A.  Fund/SERV  ..................................................................................... 195 
                       B.  Networking ....................................................................................... 205 
                       C.  DTCC Payment aXis ........................................................................ 207 
                       D.  Mutual Fund Profile Service ............................................................. 208 
            RULE 53.  ALTERNATIVE INVESTMENT PRODUCT SERVICES AND 
                     MEMBERS ................................................................................................. 211 
            RULE 54.  DTCC LIMIT MONITORING RISK MANAGEMENT TOOL ....................... 222 
            RULE 55.  SETTLING BANKS AND AIP SETTLING BANKS ................................... 224 
            RULE 56.  SECURITIES FINANCING TRANSACTION CLEARING SERVICE ......... 229 
            RULE 57.  INSURANCE & RETIREMENT SERVICES .............................................. 247 
            RULE 58.  LIMITATIONS ON LIABILITY ................................................................... 253 
            RULE 59.  ACCOUNT INFORMATION TRANSMISSION SERVICE ......................... 255 
            RULE 60.  MARKET DISRUPTION AND FORCE MAJEURE ................................... 256 
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