Once a trade has been executed, trade details are transmitted to the National Securities Clearing Corporation (NSCC®) for clearance and settlement via the Regional Interface Organization (RIO). All trading transactions are transmitted to NSCC electronically matching the details of the trades from both the buyer and the seller into one deal record. These transactions are considered “locked in.”
Clearing firms must become NYSE Arca Equity Trading Permit (ETP) holders to obtain direct access to NYSE Arca and clear trades on behalf of exchange participants and be setup to participate on the NYSE Arca RIO. Firms that are not self-clearing must have their NYSE Arca clearing firm provide a Clearing Letter of Consent to the CRS / Membership acknowledging and accepting the financial responsibility for all of their correspondent’s transactions. To direct orders to NYSE Arca, clearing firms must complete additional membership agreements.