Glynis Aquino, DTCCDonald Wiiken, DTCCGlynis Aquino, DTCCDonald Wiiken, DTCC Empowering the Six Sigma Business Philosophy at DTCC Karim Houry ACSDA - October 10, 2007 Karim Houry ACSDA - October 10, 2007

Business Philosophy Also management philosophy. Platform for deployment. Usually, with a limited shelf-life.

Fueling our Six Sigma Business Philosophy 6σ6σ But 6 Sigma stuck and evolved…

Whats in YOUR 6σ Engine? Empower: Also enable. Provide the official authority. Fuel with force and energy. Please join me for the ride…

The Ride ! DTCC at a glance Our Quality journey Lessons learned on the way DTCC at a glance Our Quality journey Lessons learned on the way

Background on DTCC Largest post-trade financial services infrastructure organization in the world Cradle-to-Grave management of securities Primary business focus on clearance, settlement, and asset servicing for equity and fixed income securities Industry owned Largest post-trade financial services infrastructure organization in the world Cradle-to-Grave management of securities Primary business focus on clearance, settlement, and asset servicing for equity and fixed income securities Industry owned

DTCC Mission Statement By 2010, to be the acknowledged world-class provider of servicing solutions to financial markets through leadership, innovation, technology, risk management, and strategic alliances.

NYSE / NASDAQ Mutual Funds Insurance Companies Trust Companies Banks Broker / Dealers Investment Managers Securities Firms Banks Broker / Dealers Investment Managers Securities Firms DTCC Customers More than 11,000 companies within the global financial services industry More than 11,000 companies within the global financial services industry

2006 Performance Highlights 961 billion: Total number of shares traded 8.6 billion: Total number of transactions processed $171.8 trillion: Financial obligations eliminated through netting $36 trillion: Value of securities on deposit $580 million: Rebates, discounts and interest back to customers $1.5 quadrillion: Value of securities settled through DTCC $2.1 trillion: Value of mutual fund transactions processed

Evolution of our Quality Culture Catalyst for Change Support DTCC Growth and Strategy to The 100-Day Plan Launch of Six Sigma Program Expansion Program Acceleration 1980s Quality Circles Employee Participation Program 1990s Continuous Improvement Program Cost of Non Conformance Work Process Improvement 1980s Quality Circles Employee Participation Program 1990s Continuous Improvement Program Cost of Non Conformance Work Process Improvement Early 2000s Six Sigma Launch & Quality Council Central Quality Office & Six Sigma Infrastructure Teams Balanced Business Scorecard Cross-functional projects Early 2000s Six Sigma Launch & Quality Council Central Quality Office & Six Sigma Infrastructure Teams Balanced Business Scorecard Cross-functional projects

Regular Octane: Executive Sponsorship... and if we are to stay relevant in this changing financial services environment – then Six Sigma methodology and metrics must reach deeply into our organization. Jill M. Considine, former Chairman & CEO How The Depository Trust & Clearing Corporation Built A Culture of Quality, June our Six Sigma program has made DTCC better, measurably better, in the way we deliver services to our customers, and in the way we perform on a day-to-day basis. Don F. Donahue, Chairman & CEO Six Sigma in Financial Services Address, May 2007 QC A Quality Council with senior executives

Super Octane: A Clear Roadmap Cruise Control 6 Sigma goals linked to Corporate Goals Balanced Business Scorecard Cruise Control 6 Sigma goals linked to Corporate Goals Balanced Business Scorecard Acceleration Quality Targets assigned by Business Unit Automated BBS structure DTCC-wide web based database Acceleration Quality Targets assigned by Business Unit Automated BBS structure DTCC-wide web based database

Premium Octane: Engaging the Base Cruise Control 16 Yellow Belts, 81 Green Belts, 14 Black Belts, 1 Master Black Belt 7 rounds of Green Belts training eLearning and instructor- led training Green Belts Graduation Ceremonies 200 projects completed 600+ employees engaged Cruise Control 16 Yellow Belts, 81 Green Belts, 14 Black Belts, 1 Master Black Belt 7 rounds of Green Belts training eLearning and instructor- led training Green Belts Graduation Ceremonies 200 projects completed 600+ employees engaged Acceleration More targeted training classes Enhanced coaching skills Rotation Program Project pipeline Kaizen Events Acceleration More targeted training classes Enhanced coaching skills Rotation Program Project pipeline Kaizen Events

Turbo-Charge: Engaging the Middle Cruise Control Identify Project Champions Expand Process Excellence Cruise Control Identify Project Champions Expand Process Excellence Acceleration Require Business Process Management Training Establish a Quality Forum Draw by example via Fast Track Managing Directors Training Acceleration Require Business Process Management Training Establish a Quality Forum Draw by example via Fast Track Managing Directors Training

Your Car Needs External Sponsors 06 CUSTOMER SATISFACTION 91% Overall 91% Quality 94% Integrity

Track Progress vs. Target Launch Projects Identify Project Teams Identify Improvement Projects Set Improvement Target Create Baseline & Control Chart Track Metric Identify Metric Create Map or SIPOC* Keeping an Eye on our Internal Gauges too Process Control Mgt Lean & Decision Making Training: E-Learning for Metrics Identify Process & Team Meet customer & shareholder needs Provide a clear linkage between strategic corporate goals, process metrics, and improvement projects Efficient processes, launch improvement projects, and tap into new markets Drive Business Units to measure processes from an end-to-end perspective Make decisions that benefit DTCC vs. Business Unit-specific objectives Break down barriers among Business Units Year 1 ID Process & Metric Year 2 Improve Process & Metric Year 3 ID New Process &/or Metric Continuous Improvement Loop Year 3 Continued Improvement Build Improve Re-Build *SIPOC = Suppliers, Inputs, Process, Outputs, Customers

Balanced Business Scorecard

This is a journey, not a destination

Questions?