Standard&Poor's Ratings Services' ratings on National Securities Clearing Corp. (NSCC) reflect the firm's effective monopoly and crucial role 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 safeguards that protect the clearing organization from member default. Given the importance of NSCC's function to the fabric of the U.S. securities markets, we consider that both members--already bound by mutuality of risk--and the larger investment community have a strong incentive to support NSCC if this becomes necessary. NSCC is responsible for clearing, settling, and guaranteeing equity, corporate, and municipal bond trades on the principal U.S. securities marketplaces. NSCC employs multiple layers
