DTCC expands NSCC鈥檚 central clearing capabilities
19 May 2026 US
Image: Murrstock/stock.adobe.com
The Depository Trust & Clearing Corporation (DTCC) has expanded its central clearing capabilities to support options鈥慴ased exchange鈥憈raded funds (ETFs), marking a significant step forward in the evolution of ETF post鈥憈rade infrastructure.
The new capability enables the National Securities Clearing Corporation (NSCC) and Depository Trust Corporation (DTC) to centrally clear ETF shares that include listed options as underlying components, via connectivity to the Options Clearing Corporation (OCC).
It aims to further enhance risk management, operational efficiency, and transparency in the rapidly growing ETF market.
Under the new framework, ETF shares and DTC鈥慹ligible components will be centrally cleared through NSCC and settled at DTC.
Listed options components will be cleared by OCC, and NSCC will transmit instructions to facilitate the transfer of options positions between counterparties.
NSCC does not clear the underlying options, but in partnership with the OCC, it provides an integrated clearing workflow that aligns ETF share processing with options settlement.
Arianne M. Collette, managing director and head of US equities at DTCC, says: 鈥淎s ETFs continue to evolve and diversify, it鈥檚 critical that the post鈥憈rade infrastructure evolves with them.
鈥淭his enhancement builds on our existing ETF clearing capabilities and reflects our ongoing commitment to reducing risk, improving liquidity management, and supporting innovation that advances markets and delivers new value.鈥�
Options鈥慴ased ETFs, including covered鈥慶all and FLEX options strategies, have experienced significant growth in recent years, says DTCC, driven by strong investor demand and expanding product innovation.
DTCC鈥檚 enhanced clearing model is designed to support this growth by extending central clearing to ETF structures that include listed options.
Mike Hansen, chief clearing and settlement officer at OCC, comments: 鈥淥ur members have been clear about what they need as options-based ETFs continue to gain traction, and this capability delivers on that.
鈥淭his enhanced connectivity with DTCC supports a more integrated post鈥憈rade workflow, leveraging OCC鈥檚 expertise in listed options clearing while promoting greater risk management, transparency, and operational efficiency across the ETF ecosystem.鈥�
In addition to expanding clearing coverage, DTCC has also enhanced its liquidity and risk management capabilities for ETFs. As part of this initiative, DTCC is introducing earlier access to preliminary ETF transaction data to support more timely liquidity estimation.
鈥淓TF inflows continue to set new records, and central clearing plays a critical role in ensuring that growth is supported by resilient, scalable infrastructure,鈥� adds Collette. 鈥淭his is another step in building the foundation for the next generation of ETF markets.鈥�
A part of DTCC鈥檚 transformation efforts, these enhancements are designed to help market participants better manage high鈥憊alue primary market ETF activity and respond to evolving liquidity dynamics.
The new capability enables the National Securities Clearing Corporation (NSCC) and Depository Trust Corporation (DTC) to centrally clear ETF shares that include listed options as underlying components, via connectivity to the Options Clearing Corporation (OCC).
It aims to further enhance risk management, operational efficiency, and transparency in the rapidly growing ETF market.
Under the new framework, ETF shares and DTC鈥慹ligible components will be centrally cleared through NSCC and settled at DTC.
Listed options components will be cleared by OCC, and NSCC will transmit instructions to facilitate the transfer of options positions between counterparties.
NSCC does not clear the underlying options, but in partnership with the OCC, it provides an integrated clearing workflow that aligns ETF share processing with options settlement.
Arianne M. Collette, managing director and head of US equities at DTCC, says: 鈥淎s ETFs continue to evolve and diversify, it鈥檚 critical that the post鈥憈rade infrastructure evolves with them.
鈥淭his enhancement builds on our existing ETF clearing capabilities and reflects our ongoing commitment to reducing risk, improving liquidity management, and supporting innovation that advances markets and delivers new value.鈥�
Options鈥慴ased ETFs, including covered鈥慶all and FLEX options strategies, have experienced significant growth in recent years, says DTCC, driven by strong investor demand and expanding product innovation.
DTCC鈥檚 enhanced clearing model is designed to support this growth by extending central clearing to ETF structures that include listed options.
Mike Hansen, chief clearing and settlement officer at OCC, comments: 鈥淥ur members have been clear about what they need as options-based ETFs continue to gain traction, and this capability delivers on that.
鈥淭his enhanced connectivity with DTCC supports a more integrated post鈥憈rade workflow, leveraging OCC鈥檚 expertise in listed options clearing while promoting greater risk management, transparency, and operational efficiency across the ETF ecosystem.鈥�
In addition to expanding clearing coverage, DTCC has also enhanced its liquidity and risk management capabilities for ETFs. As part of this initiative, DTCC is introducing earlier access to preliminary ETF transaction data to support more timely liquidity estimation.
鈥淓TF inflows continue to set new records, and central clearing plays a critical role in ensuring that growth is supported by resilient, scalable infrastructure,鈥� adds Collette. 鈥淭his is another step in building the foundation for the next generation of ETF markets.鈥�
A part of DTCC鈥檚 transformation efforts, these enhancements are designed to help market participants better manage high鈥憊alue primary market ETF activity and respond to evolving liquidity dynamics.
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