National Securities Clearing Corp.

Monopoly as the sole clearinghouse serving the principal securities markets in the U.S. Strong financial safeguards and risk-management controls to protect against member default Mutuality of risk, which provides strong financial and business incentives for member support Implied support from the broader securities markets community owning to its central role in the infrastructure of the U.S. capital markets Moderately high degree of operating leverage because revenues depend on trading volumes in the U.S. capital markets Standard&Poor's Ratings Services' ratings on National Securities Clearing Corp. (NSCC) reflect the firm's effective monopoly as the sole clearinghouse serving the principal securities markets in the U.S. Our ratings are also based on NSCC's robust risk-management controls and procedures and the existence of

RESEARCH National Securities Clearing Corp. Publication date: 21-Nov-2012 Primary Credit Analyst: Olga Roman, New York (1) 212-438-5803; olga_roman@standardandpoors.com Secondary Contact: Charles D Rauch, New York (1) 212-438-7401;...

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