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1
Cleaning Up Reference Data
Amy G. Harkins Director, Global Asset
Servicing Mellon Financial Corporation
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2

• Todays Presentation
• Mellons Background/Growth Timeline
• Business Requirements led to Referential Data
• Strategic Initiative Results
• Tactical versus Strategic Solutions
• Tactical Solutions
• Strategic Solutions
• Lessons Learned

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3

• Mellon Financial Corporation - Background
• A Global Financial Services Company
• 2.8 Trillion in Assets Under Administration
• 588 Billion in Assets Under Management
• 4.4 Billion in Total Revenue
• 86 Fee-based Revenue
• 25,000 associates worldwide
• Annual Technology Reinvestment of 430 Million
• 6 Global Custodian, 11 Investment Manager

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4

• Mellons Growth Timeline Global Securities
  Services
• 1995 Completion of Boston Safe Deposit
  Integration.
• 1996 Completion of Dreyfus Retirement Services
  Integration.
• 1997 Re-engineered operational workflows which
  resulted in enhanced data/system requirements for
  the Security, Broker, Account/Entity, Corporate
  Actions, Income, Dividend and Pricing components.
• 1997 CIBC Mellon JV, ABN AMRO Mellon strategic
  alliance and Mellon European Fund Services.
• Three Separate Initiatives commenced Strategic
  Accounting, Strategic Pricing and Global
  Corporate Actions STP.

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5

• Business Requirements led to Referential Data
• Migration from Point-in-Time to Real-Time market
  data availability (Pricing, Income, Dividend
  Corporate Actions).
• Ability to provide more current and composite
  (calculated) reference data for exotic security
  types.
• Changing needs of downstream business-users
  (Back-office through to Front-office applications
  of data).
• Enhanced/robust cross-referencing of industry
  data to support geographic growth
  (Brokers/Security Identifiers/Local Market Data).
• Enhanced Entity/Client Geographical Regulatory,
  Accounting and Tax Reporting.

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6

• Strategic Initiatives Results
• Strategic Accounting reviewed existing Mellon
  Platforms and 5 external platforms. Recommended
  Eagles STAR Product.
• Strategic Pricing reviewed existing and proposed
  data vendors and scope of services across all
  business segments. Recommended Eagles PACE
  Product.
• Mellon purchased Eagle Investment Systems.
• Global Corporate Actions Straight Through
  Processing project was funded.
• Centralized Data Quality functions surrounding
  referential data.

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7

• Progress on Tactical Solutions
• Cleaned-up vendor outbound feeds based on the
  current client/ asset holdings. Savings of
  500K.
• Consolidated duplicate vendor feeds based on the
  systems integration/business requirements.
  Savings of 2.0M.
• Determined data gaps client needs versus vendor
  services.
• Implemented a centralized data quality team to
  ensure proper treatment on accounting platform.
  This required the business segments buy-in that
  quality/timeliness would not suffer but, improve
  with a centralized unit. Savings of 540K.
• Automated the Commercial paper and Mortgage
  Backed security set-up.

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8

• Progress on Strategic Solutions
• Consolidation of Investment Data Services team to
  support clients using one hub of information
  (Model Office) Live September 2002 via Eagle
  PACE platform.
• Security Master, Pricing, Income, Dividend and
  Corporate Actions Referential data all organized
  in one geographical location and under one
  manager.
• Implementation of Straight Through Processing of
  Corporate Actions announcements and eligibility
  calculations in accordance with SWIFT 15022 ISO
  standards. Live September 2002.

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9

• Lessons Learned
• What you think your clients or business segments
  need today is NOT what they will need tomorrow.
• Core data efficiencies in place prior to project
  initiation.
• Crawl before you run. Business Segment by
  Segment.
• Standardize data elements/definitions are
  critical.

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