STA Annual Conference

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STA Annual Conference

J. Trezza DTCC, Oct 2007
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Agenda

• Paperless Legals
• AccuBasis
• Cost Basis Tool
• FAST/DRS
• Rule Filing
• DRS Status

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Paperless Legals
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Paperless Legals

• gt 99 of all deposit transactions
• Investor service
• No more Paper
• Legals _at_ DTC
• Are you in it?

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AccuBasis
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AccuBasis

• Cost basis calculations
• Stock pricing history
• Corporate actions
• DRiP
• Inexpensive
• Investor friendly
• Shareholder
• satisfaction

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AccuBasis

• Business models
• Seat _at_ table
• White label
• Link
• Integrated
• Customized
• Revenue
• TA, issuer and
• service providers

Aggressive Birds
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FAST/DRSSEC Rule Filing
I wasnt in the office when they wrote these!
Save me, please
HELP!!!!
OUCH!
It wasnt my fault.
Dont shoot!!!
Im innocent I tell ya
Ouch, that hurts
You got the wrong guy

• Dont hurt me!!!!!

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FAST Filing Objectives

• Standardize
• Update
• Preparation for
• migration
• 100 new agents
• 6,000 new issues
• Safeguard
• Lots of comments

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My perspective.
IMF Team
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FAST/DRSMY Perspective

• Insurance
• Too Expensive
• Not a Custodian

• Exceptions
• lt25K insurance
• lt3K infrastructure
• 600 for safe
• Are too!
• DWAC
• Blacks Law

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Blacks Law

• The keeping, safeguarding, care, watch,
  inspection, preservation (and) or security of a
  thing (securities), carrying with it the idea of
  the thing being within the immediate personal
  care and control of the person to whose custody
  it is subjected.
• custodian has the obligation to preserve and
  safe-keep the property entrusted to her

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FAST/DRSMY Perspective

• DTC wont pay fees

• Always have, always will
• Fee bearing issues
• Cancellation fee
• gt 7.8 million 2006
• DMA
• Rush transfers
• Cert/WT rejects
• DRS rejects
• Easy to collect
• Uninformed

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FAST/DRSMy other observations

• Taken all comments into account
• Reasonable changes
• Sought outside, third party perspective
• Re-file
• SEC guidance for matters still to be ironed out

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DRS Update
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DRS update

• gt 4,000 eligible issues
• 300 statement only
• 300 DRS eligible only
• lt 3,000 to go
• Notify DTC
• Eligible only and DRS participating
• Preferred, warrants, rights, etc.
• DTC only shareholder not the same as BEO

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DRS Update

• SIFMA initiative (handouts in the back)
• Overwhelming support
• Pershing
• Bear Sterns
• Citigroup
• NFS (default only)
• Project gt 15 reduction in WTs for 08
• Reduction in WTs reduction in deposits

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www.dtcc.com/nomorepaper

• www.dtcc.com/ProductsAndServices/asset/accubasis

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Im outta here
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The mandatory Q A session!!!
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Off to the spa
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STA Annual Conference

J. Trezza DTCC, Oct 2007