Throughout the settlement processing day, as transactions are processed against a participant’s account, settlement debits and credits are updated in the settlement system on a real-time basis.
直接转矩 debits and credits arise primarily from securities transfers versus payment, but are also incurred from payment orders and distributions including principal and income payments for securities credited to the participant’s securities account. NSCC debits and credits are also tracked throughout the day and result primarily from NSCC’s Continuous Net 结算 (CNS) activity. 在一天结束的时候, a final net debit or net credit is calculated for 直接转矩 – and, 如果适用的话, NSCC – for each participant account.
Through cross endorsement between 直接转矩 and NSCC, a participant’s 直接转矩 and NSCC settlement balances are netted at the legal entity level.
The example below illustrates how cross endorsement introduces settlement efficiencies into the end-of-day settlement process:
Upon the completion of cross endorsement, a final net debit or credit balance is determined for each participant. Debits reflect a participant’s obligation to pay 直接转矩 while credits reflect an obligation to pay the participant.
Each participant must choose a settling bank that is also a 直接转矩 participant with access to the Fedwire system and NSS to act on its behalf when settling with 直接转矩. 直接转矩 further reduces money transfers by netting participant balances at the settling bank level, which allows a settling bank to settle for multiple participants via a single Fedwire instruction rather than settling each individual participant balance.
The example below illustrates how netting at the settling bank level introduces additional settlement efficiencies into end-of-day settlement:
结算银行, 代表参与者行事, acknowledge or refuse to settle participant balances. Upon acknowledgement from all settling banks, 直接转矩 collects and disburses settling bank balances through the Federal Reserve’s NSS, which directly posts debits and credits to settling bank accounts.