SIE Exam Question 691: Answer and Explanation

Question: 691

Which of the following provides clearing, settlement, risk management, central counterparty services, and a guarantee of completion for certain transactions for virtually all broker-to-broker trades involving equities, corporate and municipal debt, ADRs, ETFs, and UITs?

• A. ATC
• B. NSCC
• C. OCC
• D. TRACE

Correct Answer: B

Explanation:

The NSCC (National Securities Clearing Corporation) provides clearing, settlement, risk management, central counterparty services, and a guarantee of completion for certain transactions for virtually all broker-to-broker trades involving equities, corporate and municipal debt, ADRs, ETFs, and UITs.