Advancing ACSDA Markets, Regionally and Globally: A Dialogue with Industry Colleagues Association of Global Custodians Perspective ACSDA 10th General Assembly Panama City, Panamá February 21, 2008 www.theagc.com

The Association of Global Custodians is an informal non-profit group of eight global custodian banks that are major providers of securities custody and trade settlement services to institutional investors worldwide. Established in 1997, the AGC primarily seeks to address regulatory issues that are of common interest to global custody banks. The member banks are competitors, and the AGC does not involve itself in member commercial activities or take positions on how members should conduct their custody businesses.                               AGC members: The Bank of New York Mellon Corporation Brown Brothers Harriman & Co. Citibank, N.A. HSBC Securities Services JPMorgan Chase Bank, N.A. The Northern Trust Company RBC Dexia Investor Services State Street Bank and Trust Company Active AGC Committees Depository Information Gathering Project (“DIGP”) Tax Committee Corporate Actions Risk Task Force: European Issues Committee Offshore Fund Processing Committee International Securities Market Advisory Group Consultations in specific markets, e.g., Russia, Thailand AGC members serviced over $55 trillion in assets under custody globally* * Source: The 2006 Global Custody Yearbook, Buttonwood International

AGC members prepare independent 17f-7 CSD assessments for clients Advancing the partnership between the AGC and ACSDA to improve operational efficiency in meeting U.S. Rule 17f-7 requirements AGC’s Depository Information Gathering Project (DIGP): Regulatory compliance requirement: Global custodian banks are required to provide annual independent assessments of CSDs and ICSDs to clients governed by Rule 17f-7 of the U.S. S.E.C. 1940’s Act Data gathering process: Over 120 depositories have completed the AGC’s DIGP questionnaire. The AGC works closely with depository groups to determine the most efficient way of providing the necessary data. Yearly updates typically require minimal changes Access: The AGC provides the responses to its members and encourages the depositories to post their completed AGC questionnaire on their own websites Improve the operational efficiency of the yearly assessment process in strong partnership of AGC and ACSDA Benefit of responding to AGC questionnaire is a centralized data gathering for eight global custodians, reducing multiple requests to ACSDA AGC members review the questionnaire with ACSDA members to ensure all information needed under Rule 17f-7 is included Work with ACSDA to determine most efficient process of gathering the information from each member Once initial questionnaire is answered, annual updates are straight forward and not time consuming AGC members are encouraged to share the risk assessment of a CSD with that institution Assessments provided to AGC members’ clients governed by SEC 1940’s Act AGC 17f-7 Data Repository CSDs & ICSDs complete AGC questionnaire AGC members prepare independent 17f-7 CSD assessments for clients

Current Active AGC Efforts Tax Committee: Enhance tax reclaims processing globally OECD Collective Investment Vehicle project Russian withholding taxes affecting dividend income Corporate Actions Risk Task Force: Improve corporate actions processing AGC Corporate Actions Whitepaper covering ISO standards for end-to-end processing of initial company announcements Collateralized Mortgage Obligations processing in the U.S. SEC relief for processing non-U.S. corporate actions and rights offerings Partial calls processing and late notifications in the U.S. European Issues Committee: Monitor and comment on regulatory changes impacting global custody Code of Conduct Working Group Target 2 Securities Euroclear Single Platform Advisory Group Proposed ESCB-CESR Standards Possible clearing and settlement directives Offshore Fund Processing: Identified concerns in offshore fund processing and possible solutions Submitted four papers/letters in last 18 months covering Germany, Luxembourg and Ireland