Bill Hodash

1
DTCCs 2005 Development AgendaQ3 Update

• Bill Hodash
• Managing Director
• DTCC

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What is the Development Agenda?

• Early each year, DTCC publishes a comprehensive
  list of the major programs it plans to advance
  over the course of the coming year.
• Over the course of the year, priorities and plans
  can change, resulting in acceleration,
  deceleration or cancellation of specific
  initiatives. To keep the industry informed on
  these changes, DTCC issues four quarterly updates
  of progress against the original plan.

3
DTCC Enterprise-wide Activities

• Business Continuity
• SBC
• RDC / ADC
• Participant Testing

4
DTCC Enterprise-wide Activities

• Clearing Corporation Insourcing
• DTCC successfully insourced data processing
  support for NSCC applications from SIACs Shared
  Data Center to DTCCs data center complex in
  2004.
• In 2005, insourcing efforts have been focused on
  FICC applications. All core FICC systems and
  supporting infrastructure have now been insourced
  to DTCC, 2 ½ months ahead of schedule.

5
DTCC Enterprise-wide Activities

• Communication Upgrades
• Migrating from legacy networks
• Retiring legacy interface technologies
• PBS replacement of PTS

6
DTCC Enterprise-wide Activities

• Billing Modernization
• In 2004, DTCC implemented a new billing system
  and made available PDF and spreadsheet versions
  of NSCC and DTC invoices.
• Invoices for Proxy have been moved on the new
  billing system and will be available as customers
  are moved over to the upgraded Proxy service.
  Conversion of SMART Network invoices has been
  postponed until Q1 2006.

7
Equity Clearance and Settlement

• Canadian Dollar Settlement Service
• Develop a system to facilitate the settlement of
  Canadian dollar transactions between DTC and
  Canadian Depository for Securities, Ltd (CDS)
  participants.

8
Fixed Income Clearance and Settlement

• Money Market Instruments (MMIs)
• Develop hybrids processing automation

9
Asset Services

• Global Corporate Action (GCA) Services
• Enhance the efficiency, coverage and global
  footprint of the GCA Validation Service to meet
  the needs of additional customers
• Corporate Action Systems Reengineering
• Redesign systems consistent with the strategic
  goals of risk mitigation, cost reduction and
  streamlined processing

10
Asset Services

• Underwriting Systems Reengineering
• Redesign systems to improve the underwriting
  process consistent with the strategic goals of
  risk mitigation and cost reduction.
• Complex Securities Servicing
• Establish best practices and performance metrics
  for the handling of complex securities.

11
Asset Services

• Immobilization and Dematerialization
• Improve transfer-processing efficiencies and
  reduce vault holdings in defunct issues
• Restricted Securities
• Continue to implement new services to streamline
  the lifting of restrictions on securities

12
Network Services/Technology

• SMART/Search for Archived Reports
• Provide expanded functionality for depository and
  clearing corporation customers using this online
  report archive service

13
Network Services/Technology

• Message Delivery System Replacement
• Upgrade message communication to customers.
• Customer Self-Service Capabilities
• Enhance the DTCC customer service experience by
  improving customer support functionality for DTCC
  browser based products.

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THANK YOU!

• We look forward to seeing everyone at the 2006
  BDUG Annual Meeting in Tampa Bay