March 2006 IT For Financial Services Joe Leinhauser TREASURY & SECURITIES SERVICES

1 IT FOR FINANCIAL SERVICES Introduction After the Trade is Made Who is Behind the Curtain Industry Drivers Impacting IT Q&A Agenda

2 IT FOR FINANCIAL SERVICES AFTER THE TRADE IS MADE Internal Systems Front Office trade capture and risk management systems Securities Processing and control applications Reporting (e.g., client, regulatory) Financial (e.g., P&L, General Ledger) Interfaces with external entities Exchanges (e.g., NYSE, NASDAQ, LSE) Clearing houses (e.g., DTCC, CREST, EuroClear) Commercial Banks (e.g., Custodians, Transfer Agent) Communication with Clients Confirmations Settlements instructions (cash, securities)

3 IT FOR FINANCIAL SERVICES WHO IS BEHIND THE CURTAIN Software developers/vendors Developers of custom code for client-driven requirements (e.g., IBM, Cognizant) Providers of “packaged” or semi-custom software (e.g., Sungard, MKI-Frustum) Data Providers Bloomberg Reuters Securities Operations Depositories Custodians Transfer Agents Communication Facilitators SWIFT FIX

4 IT FOR FINANCIAL SERVICES SWIFT is the financial industry-owned co-operative supplying secure, standardized messaging services and interface software to 7,800 financial institutions in more than 200 countries. SWIFT's worldwide community includes banks, broker/dealers and investment managers, as well as their market infrastructures in payments, securities, treasury and trade. SWIFT Mission Work in partnership with its members to provide low-cost, competitive financial processing and communications services of the highest security and reliability. Contribute significantly to the commercial success of its members through greater automation of the end-to-end financial transaction process, based on its leading expertise in message processing and financial standards setting Capitalise on its position as an international open forum for the world’s financial institutions to address industry-level threats, issues and opportunities SWIFT

5 IT FOR FINANCIAL SERVICES INDUSTRY DRIVERS IMPACTING IT Present Exchange consolidation SOX Mergers STP Risk Management Past Y2k European Union Mergers Future T+1 Regulatory Harmonization Non-standard competitors Mergers STP Risk Management

6 IT FOR FINANCIAL SERVICES Q&A