2025-12716Notice

SEC Lets NSCC Ditch Old Exemption Tech for Simpler Trading

Published Date: 7/9/2025

Notice

Summary

The National Securities Clearing Corporation (NSCC) is turning off some old features in its system that handled special exemptions and fully-paid accounts. This change affects brokers and investors who use these services, making the process simpler and more up-to-date. The update took effect right after filing on June 27, 2025, with no extra costs expected.

Analyzed Economic Effects

2 provisions identified: 0 benefits, 2 costs, 0 mixed.

Level 2 Exemptions Removed

NSCC will remove CNS Level 2 Exemptions effective August 28, 2025. NSCC found limited use (across five Members), says it will convert any remaining Level 2 Exemptions to Level 1 automatically, and points Members to alternatives like CNS Level 1 Exemptions, DTC's Inventory Management System (IMS), and DTC Memo Segregation.

Fully-Paid-For Accounts Decommissioned

NSCC will decommission CNS Fully-Paid-For Accounts effective September 11, 2025. NSCC reports fewer than 10 Members used these accounts, will work with affected Members to wind down usage, and will automatically move any positions remaining in the Fully-Paid-For ('E') subaccount to the general CNS 'A' subaccount on the implementation date; NSCC points to DTC Memo Segregation as an alternative.

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Key Dates

Effective Date
Published Date
6/27/2025
7/9/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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