All qualified NSCC members are able to use the service, and it is especially advantageous to those that serve both a retail and institutional client base. Members must have the ability to settle at NSCC.

The service makes the settlement process more efficient, reduces risk associated with conditional "iffy" borrows and eliminates unnecessary carrying costs:

• Through the service, participants are no longer forced to arrange for "iffy" borrows or to wait for expected allocations and separately process third-party deliveries
• The Fully-Paid-For Account expedites and synchronizes street-and customer-side settlement, facilitating cash-flow planning, and reducing interest and carrying costs
• The protection of participants' customer securities is enhanced and maintained

Brokers who are expecting to receive a security in CNS may make deliveries of the same amount of customer securities to third parties. If CNS does not allocate the position, the member must move its CNS long position from the general CNS account (A) to the Fully-Paid-For-Account (E). To move positions in and out of these accounts, participants submit instructions to NSCC by mid-morning.

On the money settlement side of the Fully-Paid-For Account, NSCC debits the participants' money settlement accounts for the current market value of long securities positions in the Fully-Paid-For Account.

These debits are accounted for separately. Thereafter, participants' daily net money settlements are adjusted to reflect price changes (if any) through daily marks-to-the-market, until CNS security allocations offset positions in participants' Fully-Paid-For Accounts.