SIE Exam Question 782: Answer and Explanation

Question: 782

Which of the following is the National Securities Clearing Corporation's core engine that acts as the central counterparty for clearance and settlement for virtually all broker-to-broker equity, corporate, and municipal bond trading in the United States? It settles trades from the nation's major exchanges and nets those transactions to one security position per member per day.

• A. CNS System
• B. DTCC System
• C. OATS System
• D. RTRS System

Correct Answer: A

Explanation:

The CNS (Continuous Net Settlement) System is the National Securities Clearing Corporation's core engine that acts as the central counterparty for clearance and settlement for virtually all broker-to-broker equity, corporate, and municipal bond trading in the United States. It settles trades from the nation's major exchanges and nets those transactions to one security position per member per day.