Overview

SMART/Track for Buy-ins is a web-based system that enables automated communication and tracking of NSCC CNS and non-CNS (e.g. NYSE, AMEX, NASD and NSCC Non-CNS) buy-in notices as well as MSRB closeouts. SMART/Track for Buy-ins replaces the buy-in functions on PEX, DTC's Participant Exchange system, and provides additional functionality including the ability to track a notice throughout its lifecycle. Through the system, participants can easily create, send, process and track buy-in notices.

The service is currently available for use by any existing NSCC clearing firm or DTC settling member.

SMART/Track for Buy-ins supports straight-through-processing and enables participants to better manage the buy-in process by providing:

• Tracking functionality with online reporting and real-time status information of open buy-ins
• Online cancellation and updating of a buy-in notice
• Search and sort capability on any field in a buy-in notice
• Audit trail with a complete record of actions taken regarding a notice, including time, date and the person taking the action
• Link to DTC systems to indicate if the security is undergoing a dividend or corporate action or has been chilled for delivery.
• Automatic archiving with seven-year record retention easily available online.

SMART/Track for Buy-ins allows users to:

• Create and transmit a notice or retransmit a notice to another counterparty
• View notices they have received or sent
• Cancel a notice within specified time parameters
• Search for active or archived notices using specific field criteria
• Accept or reject a non-CNS buy-in intent or retransmittal or MSRB closeout
• Update a buy-in

All functionality that is available on the SMART/Track browser is also available via file transmissions or messages.

Creating a notice
Users can create and transmit the following buy-in notices:

• CNS Buy-in Intent
• CNS Buy-in Order
• CNS Buy-in Retransmittal
• CNS Buy-in Execution
• Non-CNS Buy-in Intent
• Non-CNS Buy-in Retransmittal
• MSRB Original Closeout
• MSRB Retransmittal Closeout Notice
• MSRB Execution of Original Closeout Notice
• MSRB Execution of Retransmittal Closeout Notice

The user's contact information, which is gathered during the online registration process, is automatically filled in on the input screen. Users can then fill in the remaining fields detailing their buy-in information and submit the notice to the system.

SMART/Track has links to DTC's dividend and reorganization systems and indicates on the screen if the security is pending a dividend or reorganization. SMART/Track also indicates on the input screen if the security has been chilled for delivery. Most of the input screens have a free-form field for adding comments or notes to the notice.

SMART/Track for Buy-Ins reviews the data to ensure it is complete and then makes it available to the counterparty indicated.

Responding to a notice
Participants receiving a non-CNS buy in notice or MSRB closeout can either accept or reject the notice. If rejecting a notice, the participant must enter a reason for the reject by selecting a reason from the drop-down box or entering text in the comment box.

Updating a notice
The participant initiating a buy-in notice can update a notice. For CNS notices, a participant can change any of the fields up until the notice is sent to CNS. For non-CNS and MSRB closeout notices, participants can extend the delivery date or delivery time or change the quantity, price or amount up to and including the delivery date.

Canceling a notice
Participants initiating a buy-in notice can also cancel the notice. For CNS notices, a participant can cancel the notice up until the notice is sent to CNS. For non-CNS and MSRB closeout notices, participants can cancel a notice in any status—pending, accepted, or rejected—and the status changes to "canceled."

Viewing a notice
The status of all notices can be viewed, and all notices can be searched or sorted using specific field criteria as desired by the user. Participants can view a list of notices that they sent or received as well as the details of specific notices, including the history of each notice with the details of when the action was taken, the date and time that action was taken, and the person that took the action.

Searching for an active or archived notice
Participants can search for active or archived notices within a specific date range. This includes the ability to search for all notices within that range or to search by notice type. Participants can further search within notice type by specific data fields including the execution date, settlement date, CUSIP or symbol, or counterparty. Notices are automatically archived based on certain date parameters.  Archived notices are kept online for seven years.

Disclaimer:

The purpose of the help screens in the SMART/Track for Buy-ins application is to familiarize The Depository Trust Company (“DTC”) Participants with SMART/Track for Buy-ins functionality. Participants should refer to the Rules of DTC and other applicable Self-Regulatory Organizations for the legal obligations of all parties concerned. The help screens are not intended to serve as a legal document. No statement in the help screens should be construed as a legally binding rule or regulation or as creating an obligation on the part of DTC, NSCC or any person.

Please call Relationship Management at 1 888.382.2721.