ACSDA General Assembly

1. ACSDA General Assembly Panel 2 – Asset Services Dan Thieke Brett Lancaster Friday 25 March, 2011 v03

2. Dan Thieke Vice President – Asset Services dthieke@dtcc.com Brett Lancaster Managing Director – Americas Securities brett.lancaster@swift.com

3. Corporate actions remain one of the most risky areas within financial services

4. Issuers fulfill their obligation by sending out a document, written in free text, causing issues Regulatory filings Prospectus’ Letters of transmittal Press releases Agree on event types? Agree on data elements? Agree on a unique ID? Agree on source dissemination?

5. Along the chain, from issuer to the investor, data is keyed and re-keyed manually, causing errors

6. With the recent financial crisis, clients tell us that the operational risks need to be managed Risks Interpretation Risk Issuer messages are written in “free text, e.g. news release and regulatory filing, that must be translated and rekeyed by the financial services industry Timing Risk Need for manual intervention results in delays in communicating information to the end investor Accuracy Risk Multiple players disseminating the same information results in uncertainty as to the accuracy of the result. Translation and manual rekeying increases the potential for errors Significant Costs The lack of straight-through processing throughout the corporate actions chain results in additional cost and liability being absorbed by the financial services industry http://xbrl.us/i2i/Pages/default.aspx

7. However, the planets have aligned to allow us to finally sort out the problem … at least for the U.S. Maybe, just maybe … Financial Crisis What’s it all mean? Savings … DTCC CA Re-engineering ISO 20022 XBRL Maturity

8. DTCC is working with SWIFT to implement ISO standards for Corporate Actions • DTCC is the world’s largest central depository • Within Asset Services, it represents ~4,000 Participant accounts • DTCC publishes ~20M unique Corporate Actions to its Participants, per year • In 2009, DTCC collected and paid ~$3T in Corporate Actions • SWIFT is the Registration Authority for ISO standards • Used by 9,500 firms across 209 countries • Has 88% penetration for Americas Buy-Side, by AUM • Has 96% penetration for Americas Sell-Side, by market cap • DTCC is working with SWIFT to implement its new Corporate Actions platform using ISO 20022 • Supports the entire lifecycle - all event types, all asset classes • Mandatory cutover from proprietary formats by 2015

9. DTCC Corporate Actions Re-engineering features were defined by the industry, for the industry CA Re-engineering Features Single Event Record Delivery Over SMART or SWIFT Unique CA Identifier Supports U.S. and Global Events GUI Integrated Across CA Lifecycle Automated Elections & Payments Near Real-Time Events

10. XBRL allows the issuers to disseminate electronic data from the source • XBRL revolution • XBRL is an international, non-profit, consortium dedicated to driving transparency • XBRL enables issuers to tagdata from within MS Word when preparing the source document • Some tools allow the tagged data to be ‘embedded’ within the saved pdf or doc file • Aside from tagging, the issuer, as they write the press release or prospectus, follows the same process as they do today • A range of XBRL tools are commercially available • XBRL alignment with standards • DTCC, SWIFT and XBRL-US have worked to seamlessly align the XBRL taxonomy used in the tools with ISO 20022

11. XBRL enables free text to be structured to the ISO standard and enables electronic dissemination Tagged and Structured Data 300 page S-4 SEC Paper Filing Highlight the text then ‘drag & tag’ the data element

12. Our roadmap is phased with milestones to reduce implementation risk. We have already started Phase I All DTC-specific data elements for payments incorporated into new platform Oct ‘09 Phase IIa Corporate actions announcements Pilot with ISO 20022 & new customer interface Apr ‘11 Phase IIb XBRL Interface into DTCC for dividend announcements Q4 11 Phase III End-to-end lifecycle for distributions events covering announcements and processing, including unique ID 2012 Phase IV End-to-end lifecycle for redemption events covering announcements and processing, including unique ID 2012 Phase V End-to-end lifecycle for reorg events covering announcements and processing, including unique ID 2013 Phase VI All DTC and GCA proprietary files and ISO 15022 files will be retired 2015 or sooner

13. The initial ‘announcements’ pilot starts Apr 23 with BBH. Separately, Citi are already piloting XBRL Pilot Clients

14. The industry is aligned to deliver significant benefits for all intermediaries along the chain Qualitative Benefits • Issuers • Intent and content of the originating offer are clear to the investor, without fear of misinterpretation due to manual manipulation • Details are conveyed in a timely fashion • Issuers will incur marginal additional effort in tagging the data • Sell-Side Intermediaries • Lowers risk exposure to an investor decision based on incorrect information • Interpretation, re-keying and manual exceptions are significantly reduced, and STP rate increased • Buy-Side Investors • Make decisions based on guaranteed accurate information from ‘source’ document • Longer response time as Custodians and IMs no longer need to artificially compress deadlines to compensate for manual processing of election information

15. The industry has quantified the expected gains in operational efficiency - the benefits are tangible Quantitative Benefits $400M Overall savings What’s it all mean? Savings … $230M Sell-Side savings $170M Buy-Side savings 50% 80% Improvement in STP rate Other Asian XBRL projects report actual error rates falling by x100 fold

16. Toronto19-23 Sep 2011