Qualified Special Representative (QSR) and Correspondent Clearing Services

The Qualified Special Representative is an NSCC Rule 2 full service member who has been granted status for the purpose of locking-in trades for other NSCC members and/or their correspondent. The Correspondent Clearing Service is a trade reporting service that process equity and corporate bond executed by the Special Representative. The Correspondent Clearing (Special Representative) transfers settlement obligations to the correspondents.

The forms below are requirements for an NSCC member to establish a QSR or Correspondent Clearing Services relationship:

Establishing Domestic QSRs and Correspondent Clearing Services Relationships

The Qualified Special Representative (QSR) is required to fill out the 9-A form, the Correspondent is required to fill out the 9-B and the Attachment #1 forms. Note that there are two types of Attachment #1. One type is a dual agreement between the Qualified Special Representative which owns and operates the execution system, and the Correspondent. The second type is a tri-party agreement between the Qualified Special Representative, the Correspondent and the Broker/Dealer which owns and operates the execution system.

For a Correspondent Clearing Services relationship, the Special Representative is required to fill out the 9-A form, the Correspondent is required to fill out the 9-B form. Attachment #1 is not required in this relationship.

Establishing QSRs and Correspondent Clearing Services Relationships with CDS

The CDS Clearing and Depository Services Inc. have the same requirements mentioned above, however, the forms are specially designated for the Canadian members (CDS 9-A, CDS 9-B and Attachment #1 forms). These forms are required when a domestic firm is going to establish a relationship with members of CDS or vice versa, or members of the CDS are establishing relationships among themselves.

Establishing Domestic QSRs and Correspondent Clearing Services Relationships 

• Frequently Asked Questions (FAQs)
  (MS-Word .doc, 43KB, Current Version)
• Form 9A (for QSRs and Special Representatives), Form 9B (for Correspondents) and Attachment #1
  (MS-Word .doc, 35KB, Current Version)
• Attachment #1 - Dual Agreement
  (MS-Word .doc, 27KB, Current Version)
• Attachment #1 - Tri-Party Agreement
  (MS-Word .doc, 30KB, Current Version)

Establishing QSRs and Correspondent Clearing Services Relationships with CDS 

• Special Representative Form 9A (for Canadian members)
  (MS-Word .doc, 28KB, Current Version)
• Special Representative Consent Form 9B (for Canadian members)
  (MS-Word .doc, 27KB, Current Version)
• Attachment #1 - Dual Agreement - CDS
  (MS-Word .doc, 27KB, Current Version)
• Attachment #1 - Tri-Party Agreement - CDS
  (MS-Word .doc, 28KB, Current Version)