The ratings on NSCC incorporate the company's critical role of behind-the-scenes support to the U.S. securities markets, as well as its strong credit controls and financial safeguards that protect it from counterparty default. NSCC clears, settles, and guarantees equity, corporate bond, and municipal bond 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. Through its Continuous Net Settlement (CNS) System, NSCC becomes the central counterparty to trades between members. By only accepting matched trades, NSCC eliminates price risk in the normal course of business. NSCC's guarantee generally becomes effective on midnight of T+1, giving it plenty of opportunity to
