NSCC Securities Clearing House - What Is It?

NSCC, our securities clearing house or common stocks, unit investment trust, money bonds, etc., collects margin from all of its members in order to effectively trade. So ultimately, it generally is going to flow back through us. And that's what we really guarantee are all the broker to broker transactions and securities across the street. But that does require a pretty large amount of collateral. If you have a broad diversified set of securities, the degree of volatility in that portfolio is going to be lower. On the other hand, if everybody's all on one side in a portfolio, there's more risk there than if you have obviously a balanced set of buys and sells,. There's less risk