National Settlement Service (NSS)

Also referred to as Deferred Net Settlement. The Federal Reserve Banks' multilateral settlement service. NSS is offered to depository institutions that settle for participants in clearinghouses, financial exchanges, and other clearing and settlement groups. Settlement agents acting on behalf of those depository institutions electronically submit settlement files to the Federal Reserve Banks. Files are processed on receipt, and entries are automatically posted to the depository institutions' Reserve Bank accounts. Entries are final when posted.