The Federal Reserve Banks provide the National Settlement Service (NSS), which allows participants in private-sector clearing arrangements to exchange and settle transactions on a multilateral basis through designated master accounts held at the Federal Reserve Banks. There are approximately 17 NSS arrangements that have been established by financial market utilities, check clearinghouse associations, and automated clearinghouse networks.NSS provides an automated mechanism for submitting settlement files to the Federal Reserve Banks and reduces settlement risk to participants by granting settlement finality on settlement day. NSS also enables the clearing arrangements to manage and limit settlement risk by incorporating risk controls that are as robust as those used in the Fedwire Funds Service. Participants generally submit settlement files online, by initiating an electronic message.