DTCC SOLUTIONS Asset Services Reengineering and Technology Initiatives BDUG Update October 2007

2 DTCC SOLUTIONS What Reengineering Project? Underwriting Corporate Actions Security Master Files  Source BDUG 2005

3 DTCC SOLUTIONS Reengineering 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

4 DTCC SOLUTIONS We Are Listening To The You Issues Cited  Conflicting Priorities and Bandwidth  Financial Constraints  Complete Operational Impact  Timing with other DTC initiatives

5 DTCC SOLUTIONS 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.

6 DTCC SOLUTIONS Where are we today? (continued)  2008 NUWS/NIIDS Roll-out  PUND, WUN and Paper no longer accepted in April  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.

7 DTCC SOLUTIONS 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

8 DTCC SOLUTIONS Corporate Actions Reengineering Project Current Status:  Completion of Functional Specifications – Q  Begin development effort – Q  Creation of prototype for customer feedback – Q  Completion of Build/Unit Testing – Q  Begin Internal User Acceptance Testing – Q  Commencement of all testing activities (System, UAT, Parallel, Participant) – Q  Begin transition to new system – Q  Retirement of legacy CCF files – Q3 2012

9 DTCC SOLUTIONS 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 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 "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

10 DTCC SOLUTIONS 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

11 DTCC SOLUTIONS 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

12 DTCC SOLUTIONS Other Asset Services IT Initiatives  Survivor Options (Death Puts)  Continue work with industry to devise paperless processing options