Clearing risks are evolving at National Securities Clearing Corp. (NSCC) following secular multi-year growth in equity trading activity which has increased risks during peak periods, increased concentration of that activity among the largest members, and implementation of the NSCC and Options Clearing Corp. accord in May 2024. NSCC is making investments in its risk management systems that will allow it to more accurately measure and forecast its ?cover 2? stressed liquidity needs, but it?s unclear whether the company will maintain sufficient liquidity to consistently meet hypothetical liquidity needs in a "cover 2" stress scenario (whereby the largest two clearing members default jointly). As a result, we revised the outlook to negative from stable and affirmed our 'AA+' long-term and 'A-1+'
