Ratings on National Securities Clearing Corporation (NSCC) incorporate the critical nature of its behind-the-scene support to the U.S. securities markets, as well as its strong credit controls and financial safeguards that protect it from counterparty default. NSCC is an essential component of the U.S. capital markets infrastructure in that it clears, settles, and guarantees trades on the 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. NSCC only settles compared trades or trades received as matched from the marketplaces. It has minimal exposure to price risk because it marks each of these transactions to market. NSCC's guarantee generally becomes effective on midnight
