DTCC’s NSCC to Launch 24×5 Clearing by 2026
The Depository Trust & Clearing Corporation (DTCC) announced a major update to its clearing operations. Its subsidiary, the National Securities Clearing Corporation (NSCC), will increase clearing hours to support extended trading.
About NSCC and Clearing Operations
NSCC operates under DTCC and acts as a central counterparty in U.S. securities trading. It manages post-trade services by clearing and settling trades between buyers and sellers. NSCC guarantees trade completion. It lowers risk and strengthens market stability.
Phase 1: Initial Step Toward Extended Hours
In September 2024, NSCC launched the first phase of extended clearing hours. It allowed trading platforms and market centers to start submitting trades at 1:30 AM ET—2.5 hours earlier than before. This step marked the beginning of support for overnight trading activity.
Phase 2: 24×5 Clearing Coming in Q2 2026
The second phase is scheduled for Q2 2026. NSCC plans to run clearing operations continuously from Sunday at 8:00 PM ET to Friday at 8:00 PM ET. This 24×5 model will support overnight trades from Alternative Trading Systems (ATS) and Exchanges. The change depends on regulatory approval and updates to applicable rules.
Benefits for Users
This update will have these benefits:
Faster Trade Processing During Overnight Hours
Market participants can clear trades submitted during non-standard hours, especially from international time zones. This helps avoid delays and improves operational efficiency.
Lower Counterparty Risk
By applying its central counterparty guarantee overnight, NSCC reduces the risk of one party failing to meet its trade obligations during extended trading sessions.
Increased Liquidity Availability
Extended clearing hours mean participants can access liquidity outside traditional market hours. It makes it easier to manage positions and respond to global events.
Better Support for Global Participants
Firms operating in different time zones can now match their trading activities with U.S. clearing operations, improving cross-border coordination.
Alignment With ATS and Exchange Activity
The new schedule supports overnight activity from Alternative Trading Systems and Exchanges. It post-trade processing more consistent across platforms.
About DTCC
The Depository Trust & Clearing Corporation (DTCC) is a U.S.-based financial services company. It provides clearing, settlement, and information services for various securities, including equities, bonds, and derivatives. DTCC emerged from the merger of the Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC). Both were founded in the 1970s to address the paperwork crisis in the securities industry.
Summing Up
NSCC’s extended clearing hours will go live in two phases, with full 24×5 operations expected in Q2 2026. These updates will support global trading demands by reducing risk and increasing liquidity during overnight hours.
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