Corporate Actions Transformation

1. Corporate Actions Transformation BDUG September 23, 2013

2. Agenda Agenda: • Getting to Know ISO 20022 • Timeline • Getting Started • XBRL Update • The new CA Web • Wrap Up, Q & A 2 DTCC Non-Confidential (WHITE)

3. Getting to Know ISO 20022 ISO 20022 is the cutting edge standard for corporate actions messaging 3 DTCC Non-Confidential (WHITE)

4. ISO 20022 – Key Highlights • Adoption of Market Practice and Standardization • Brings the U.S. in line with global standards and market practice • The yearly standards maintenance process requires DTCC to continuously review and analyze the ISO 20022 format to ensure compliance with market practice • New event-based data model will replace the existing proprietary structure based on function codes • Unique Event Identifier (CA ID / COAF) allows for downstream processing and marries announcement, to entitlement, to election, to payment • Greater Straight Through Processing (STP) – average of 26% more data elements in fixed fields in ISO 20022 • Reduces reliance on narrative text, allowing for more efficient processing • Reduces risk through the reduction of errors due to streamlined, automated processes, resulting in client cost savings • Real time Messaging • Over 50% of events are delivered earlier, cited in recent case study • Automating the DTCC Election process • Eliminating the manual election / instruction process can lead to cost savings, operational efficiencies, and risk reduction • Instruction Statement Report – CAST ISO 20022 Message • Automates the tracking process for outstanding election balances 4 DTCC Non-Confidential (WHITE)

5. ISO 20022 Message Types 5 DTCC Non-Confidential (WHITE)

6. Transforming the Industry The DTCC Corporate Actions Transformation initiative is a multi-year effort that offers extensive client benefits 6 DTCC Non-Confidential (WHITE)

7. Corporate Actions Transformation Project Milestones Project Timeline Announcements Processing 2010 2011/2012 2012/2014 2014/2015 2015/2016 • Phase 5 • Reorg Events • (ISO 20022) • Only reorg event types • Tender • Exchange Offer • Processing lifecycle • Entitlements • Payments • Elections • Adjustments • (Browser) • Mandated conversion to new browser in 2016 • Introduce new reorg browser features • Phase 2 • Announcements • (Browser & ISO 20022) • Conversion not mandated until end of 2015 when CCF files are retired • All event types included • Distributions • Redemptions • Reorgs • Phase 3 • Distribution Events • (ISO 20022) • Only distribution event types • Cash/Stock Dividend • Principal & Interest • Processing lifecycle • Entitlements • Payments • Instructions • Adjustment • (Browser) • Mandated conversion to new browser in June 2014 • Phase 4 • Redemption Events • (ISO 20022) • Only redemption event types • Full/Partial Call • Maturity • Processing lifecycle • Entitlements • Payments • Elections • Adjustments • (Browser) • Mandated conversion to new browser in 2015 • Introduce new redemptions browser features • Phase 1 • New Data Model • (Internal to DTCC) • Implemented new data model • Updated internal systems to support ISO 20022 messages Ongoing efforts – Clients onboard to ISO 20022 and retire CCF files (DTCC retires announcement files in 2015) 7 DTCC Non Confidential (WHITE) * Dates subject to change

8. Corporate Actions Adoption • Retirement Date • End of 2015 • 2016 • TBD • TBD • Retirement Date • June 2014 • June 2014 • 2015 • 2016 • Current CCF File • Announcements • CMORT, DIVANN, RDPRPT, REOGN2, MUNANN • Distributions Processing • CSHSET, DIVRDP, REORDP, MMIDC2 • Record Date Position • Cash/Stock Allocation Files • Redemption Processing • MMIRC2 • MMI Redemption Files • Reorg Processing • IRT1-5, RPP1-5, RTP1-5 • Rights/Put/Tenders Instructions • Current PBS/PTS Function • Announcements • DIVA, DAWN • Distributions Processing • DPAL, SDAR, EDS • Redemption Processing • RIPS • Reorg Processing • PTOP • RTOP • RIPS • ISO 20022 Replacement • CANO, CACN • CANO-E, CAPA, CACO, CAIN, CAST • CANO-E, CAPA, CACO • CANO-E, CAPA, CACO • Browser Replacement • Corporate Actions Web • Distributions processing moved to Corporate Actions Web in June 2014 • Redemptions processing moved to Corporate Actions Web in 2015 • Reorg processing moved to Corporate Actions Web in 2016 Legacy Files (CCF) Applications 8 DTCC Non Confidential (WHITE) * Dates subject to change

9. Getting Started DTCC provides extensive materials to help clients transition to ISO 20022 and onto CA Web 9 DTCC Non-Confidential (WHITE)

10. Getting Started – ISO 20022 Messaging – Testing Roadmap Step 2 - IT App Programming Step 1 - IT Connectivity • Choose a Communications Protocol • SMART = MQ, FTP or NDM • SWIFT = Interact Store & Forward or FileAct • Establish Connectivity to DTCC • Client completes Router Exchange Form (REF) • Client chooses subscriptions • DTCC begins sending ISO20022 messages • SMART vs. SWIFT • If SMART, DTCC does utilization study • If needed, client initiates circuit upgrade • Mapping ISO20022 Messages • Client determines which of its systems are impacted and identifies CCF files to be replaced • Client maps ISO20022 messages to its applications • Client gains access to corporate actions browser to assist in testing effort Connectivity Application Programming and Testing Step 3 – CCF vs. ISO – Parallel Testing Step 4 – Client in Production • Volume/Data Element Check • Client verifies that its application is receiving and processing all events and associated data elements from ISO20022 messages • Client assesses impact of new data model, messages and workflow • Parallel Testing Complete – Client Deploys ISO 20022 Messaging to Production • Client has flexibility to deploy based on event groups Client Discontinues Receiving CCF Files CCF vs. ISO 20022 Comparison • Client verifies that results from processing CCF files = results from processing ISO20022 messages Pre-Production System & User Testing Production Cutover 10 DTCC Non-Confidential (WHITE)

11. Resources & Contact Information • Corporate Actions Transformation Learning Center • Includes business and technical documentation • Learning Center URL • http://dtcclearning.com/learning/assetservices/ • Learning Center Registration Information • http://dtcc.com/downloads/legal/imp_notices/2013/dtc/ope/0188-13.pdf • Corporate Actions Onboarding Kit • http://dtcc.com/downloads/leadership/issues/reengineering/Corporate_Actions_Onboarding_Kit.pdf • Questions regarding adopting ISO 20022 can be sent to the CA Transformation mailbox at catransformation@dtcc.com. ISO 20022 adoption clients can also contact Roxana Argintescu at rargintescu@dtcc.com. DTCC Non-Confidential (WHITE)

12. Corporate Actions Transformation Learning Center 12 4 DTCC Non-Confidential (WHITE)

13. XBRL Update XBRL Driving STP 13 DTCC Non-Confidential (WHITE)

14. XBRL Initiative • Current State • XBRL concept proven with ADR pilot initiated in February 2013 with issuer Citi ADR • Deployed inbound XBRL formatted data for dividend event types (cash, stock, special and sale of rights) • 350+ XBRL messages processed to date • ADR issuers BNYMellon and JPMChase are actively engaged • XBRL “instances” automatically converted to ISO 20022 messages for clients • Governance • Charter establishes governance framework • Taxonomy releases to coincide with annual ISO 20022 standard releases in November of every year • ROI • Risk reduction by eliminating possibility of misinterpretation and keystroke error • Improved efficiency with greater straight through processing (STP) • XBRL expected to eliminate hours of manual processing per day once the 3 major ADR banks are in production • Next Steps • Add additional event types • Engage SEC and SIFMA to seek regulatory mandate

15. Introducing CA Web to know ISO 20022 Manage and process all CA events in one application (CA Web) 15 DTCC Non-Confidential (WHITE)

16. CA Web – Key Highlights • Manage all corporate action event types • Distributions (e.g. Dividends and P&I), Redemptions, and Reorganizations all on one platform • Manage the entire lifecycle of corporate actions events, from announcements, through instructions, to allocations, where data is updated in real-time • Key announcement data published • Manage and process electable corporate action events; user interface displays critical electable events • Enhanced management controls • Full event details available • Entitlements, instructions, allocations (including projections and adjustments) all available on a single event record 4. Ability to customize searches • Save and perform “favorite” searches with a click of a button without re‐selecting each search criteria • Multiple ways to search for event information, using quick search or advanced search criteria 5. Flexibility to manage data and ease of use • Ability to see announcement changes, instructions due, allocations and adjustments made, all rolling up to a dashboard view • Information is able to be exported to Excel spreadsheets • Ability to view related DTC accounts, based on predetermined entitlements • Acronyms and function codes are eliminated; events appear as they are announced in the market and aligned with the ISO 20022 messages 16 DTCC Non-Confidential (WHITE)