Standard&Poor's Ratings Services' ratings on National Securities Clearing Corp. (NSCC) incorporate its critical role in the behind-the-scenes operations of the U.S. securities markets, as well as its strong credit controls and financial safeguards that protect it from member default. Given the importance of NSCC to the fabric of the U.S. securities markets, both the members--already bound by mutuality of risk--and the larger investment community have a strong incentive to support NSCC, if this ever becomes necessary. NSCC clears, settles, and guarantees equity, corporate bond, and municipal bond trades on the U.S.'s principal securities marketplaces. In addition to ensuring the safety and soundness of the U.S. securities markets, NSCC promotes market efficiency and reduces processing costs for its members.
