DTCC SOLUTIONSDTCC SOLUTIONSAsset Services Reengineering and Technology Initiatives

BDUG UpdateOctober 2007

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What Reengineering Project?

Underwriting Corporate Actions

Security Master Files

Source BDUG 2005

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Reengineering ObjectivesReengineering Objectives

Strategic goal: implement a unified end-to-end platform from issuance through entire asset servicing life cycle

Provide more accurate and timely servicing information

Replace legacy sub-systems with newly architected platform

Automate and streamline redundant processes and data storage

Increase flexibility with rules-based system

Enhance functionality: ISO15022, multi-currency, international numbering systems

Reduce ongoing technology support costs

Support New Issue Information Dissemination

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We Are Listening To The You

Issues Cited Conflicting Priorities and Bandwidth Financial Constraints Complete Operational Impact Timing with other DTC initiatives

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Where are we today?

NUWS / NIIDS Today NUWS: September 10th in production for DTC internal underwriting

operations staff in NYC and Tampa. NIIDS / NUWS: DTC mandated in April 2008 in advance of MRSB June

mandate.

NUWS / NIIDS On-Going Industry Readiness First Round Pilot testing of web application complete. Pilot completion on hold pending system modifications and usability

enhancements. Pilot should resume in January 2008 with an end of March completion.

Book Running / Book Building Vendor testing continues – single series only.

User Registration and E-Learning Training continues .

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Where are we today? (continued)

2008 NUWS/NIIDS Roll-out PUND, WUN and Paper no longer accepted in April 2008. PUND and WUN discount discontinued in April with discount earned via

use of NUWs ** DTC Mandated of April 1, 2008 date for NUWS and NIIDS input. MSRB Mandate of June 30 for NIIDS data submission. New Fees for 2008 applicable with April 1 Mandate.

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Corporate Actions Reengineering Project

Release of the Corporate Actions Reengineering Transition Plan (9/28): Business/Operations Documentation

Data Reference Guide For Event Types

Corporate Action Event Scenarios

Quick Reference Guide to Business Event Scenarios

Technical Support Documentation Technical Specifications Guide

Data Reference Guide For Fields

Transition Plan

File Field Mapping from Legacy to ISO/XML

ISO Message Specifications

XML Message Specifications

Regional Sessions – October thru November Sessions held at various sites across the country, open to all Participants

Segments targeted to business users as well as technical project managers and BSA’s

Team of DTCC employees including PM, Ops and ADM to present each component of the plan to begin stimulating questions From

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Corporate Actions Reengineering Project

Current Status: Completion of Functional Specifications – Q4 2007

Begin development effort – Q1 2008

Creation of prototype for customer feedback – Q1 2008

Completion of Build/Unit Testing – Q4 2008

Begin Internal User Acceptance Testing – Q1 2009

Commencement of all testing activities (System, UAT, Parallel, Participant) – Q3 2009

Begin transition to new system – Q1 2010

Retirement of legacy CCF files – Q3 2012

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Other Asset Services IT Initiatives

LENS - DTC's Legal Notice Service

Comprehensive library of non-settlement related third party or agent notices about DTC-eligible securities (e.g. Bankruptcies, Defaults, Class Actions, Tax information, Notice to Security Holders, etc.)

Free e-mail alerts can be requested by notice type. Cost-efficient access via the web; offered on a per notice or monthly subscription

basis New enhancement targeted for late 2007 - "CUSIPs of interest". We'll send you an e-

mail alert related to new notices on those CUSIPs only.

Security Position Reports

Issuers, their trustees, or authorized third party agents can request information on the record date holdings of the Issuer's security in DTC customer accounts

Provide information needed to contact shareholders on corporate-related events such as annual meetings

Upgraded web access allows for fast, efficient flow of information to authorized parties; reports available by subscription or by special request as needed

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Other Asset Services IT Initiatives

Tax Information Reporting Service (TIRS)

Partnership with Broadridge (formally ADP) has been expanded for 2007 to provide a comprehensive solution that manages all year-end tax information reporting obligations through one integrated system.

In addition to Income Reclassification for Regulated Investment Companies (RICs or Mutual Funds), and Real Estate Investment Trusts (REITs) the service now covers most other issues/entities that reallocate payments, plus: Calculation of the Original Issue Discount (OID) amounts of long term debt instruments, OID and stated interest for Real Estate Mortgage Investment Conduits (REMICs), Collateralized Debt Obligations (CDOs), Unit Investment Trust Processing (UITs), and Master Limited Partnership (MLP) reporting

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Other Asset Services IT Initiatives

AccuBasis

Provides tools to prepare for upcoming legislation for Cost Basis reporting Database history back to 1925 of company information, including:

Pricing CA data and history – mergers, splits, spin-offs, etc. Dividend reinvestment history and pricing

Flexible in design and business models Web based , Batch/file transfer, White Label, In-house All or any combination of the above

Some functionality: Cost basis calculations: mutual funds, listed securities, REITS, etc. Calculations for multiple sale and purchase dates Dividend reinvestment data Issuer back-tracking Issuer pricing schedule summaries by year, month or day

Soon to come: Addition of many non-listed issuers Quicker to deliver CA information updates via interface with GCA Tax reclassification information added for REITs, equities, funds and other securities types via interface with TIRS

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Other Asset Services IT Initiatives

Survivor Options (Death Puts) Continue work with industry to devise paperless processing options