What is the purpose of NSCC illiquid charges for low-volume stocks?

External question — Personal Finance Stack Exchange Author: Flux Original post: https://money.stackexchange.com/questions/142216 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I understand the situations in which I will be charged an NSCC illiquid charge, and I have read: What are NSCC illiquid charges? From my understanding, stock brokers pass the NSCC illiquid charge to their clients. What I don't understand is: What does the NSCC illiquid charge pay for? Who ultimately receives the money from an NSCC illiquid charge? Is it a regulator?