DTC and NSCC Clause Samples
The 'DTC and NSCC' clause defines the roles and responsibilities of the Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC) in the context of securities transactions. This clause typically specifies how securities are held, transferred, and settled electronically through these entities, and may outline the procedures for clearing trades, managing settlement risks, and handling corporate actions. By clarifying the involvement of DTC and NSCC, the clause ensures efficient and secure processing of securities transactions, reducing operational risk and providing certainty to all parties involved.
DTC and NSCC. The Transfer Agent shall: (a) accept and effectuate the registration and maintenance of accounts, and the purchase and redemption of Creation Units in such accounts, in accordance with instructions transmitted to and received by the Transfer Agent by transmission from DTC or NSCC on behalf of Authorized Participants; and (b) issue instructions to a Portfolio’s banks for the settlement of transactions between the Portfolio and DTC or NSCC (acting on behalf of the applicable Authorized Participant).