Trading, Accounts & Prohibited ActsQuestion 182 of 398
Which organization acts as the central counterparty that nets and guarantees the settlement of most U.S. broker-to-broker equity trades?
a.The Securities and Exchange Commission (SEC)
b.The Federal Reserve
c.The Municipal Securities Rulemaking Board (MSRB)
d.The National Securities Clearing Corporation (NSCC)
Explanation
The NSCC, a subsidiary of the DTCC, provides central clearing, multilateral netting, and settlement guarantees for equity trades between broker-dealers. The SEC is a regulator, not a clearing house, and the Federal Reserve handles the banking payment system.
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