The Depository Trust & Clearing Corp. is seeking industry comment on a new service designed to cap its own liquidity risk when it covers the default of a clearing member.
The new service, called Continuous Net Settlement for Value, would allow DTCC to place "debit caps" on obligations of its National Securities Clearing Corp., in the event of a default that it has to cover. A debit cap would establish the maximum dollar amount that could be charged against the NSCC, in a default. NSCC would remain the central counterparty to a transaction but would not suffer a liquidity shortfall.
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