Asset Servicing 10222021 Corporate Actions Reengineering Lori Ann

Asset Servicing 10/22/2021 Corporate Actions Reengineering Lori Ann Trezza A service offering of [name of subsidiary], a subsidiary of The Depository Trust & Clearing Corporation [Classification] 2

Asset Servicing 10/22/2021 Corporate Actions Reengineering Lori Ann Trezza A service offering of [name of subsidiary], a subsidiary of The Depository Trust & Clearing Corporation [Classification] 3

Why is DTCC Reengineering? [Classification] Help participants manage risk, reduce cost and achieve greater levels of STP globally Better align DTCC data with industry standards Ensure DTCC systems can support future growth and direction (e. g. , global events, multicurrency, etc…) 4

Why is DTCC Reengineering? [Classification] Improve maintainability of application – existing application is 60 participant functions implemented at various times since 1978 with components developed in outdated languages (e. g. , Assembler) 5

Why is this important to you? [Classification] All corporate action related CCF files that you or your service provider may take from DTCC will be replaced with either ISO or XML messages User interface for new system will only be browser based GUI technology and will replace all of the existing corporate action related PTS and PBS functions 6

Why is this important to you? [Classification] “Screen scraping” or macros from PTS screens will no longer be supported You will be able to automate your election processing (including tax elections) and have “standing instructions”, which will improve your STP and decrease your costs You will be able to receive corporate actions on global securities (optional service) 7

What are the Key Announcement Changes? New Event Structure Common Structure – a new event structure that will be based on industry standards Ø Unique Event Id – each event will have a unique id that will be used for the entire event lifecycle (e. g. , submitting elections) Ø Single Announcement – DTCC currently provides separate announcements for options on elective events and tax rates on a dividend, but participants will now be able to see a single complete view of each event Ø [Classification] 8

What are the Key Announcement Changes? New Event Naming Event Types – meaningful event type names that conform to industry standards (e. g. , Cash Dividend, Tender Offer) will now be used - numeric Function Codes are being eliminated Ø Sub-Event Types – will provide greater detail to facilitate STP (e. g. , Tender Offer will have subevent type of “Dutch Auction”, “Mini”, etc…) Ø Additional Event Level Attributes Ø [Classification] event group, event mandatory/voluntary indicator, DTC mandatory/voluntary 9

What are the Key Announcement Changes? Options Ø Indicators to identify issuer vs DTC options Payouts Expanded rates Ø Stock rates declared as ratios or percentages Ø Cash rates will be declared per base quantity Ø [Classification] Expanded Data 10

What are the Key Announcement Changes? Comments Ø Introduction of Terms, Restrictions Text, Option Text, Condition Text, Payout Restriction Text, and External Comments • Event and Field Level Status • Issuer Cancellations • Related Events [Classification] 11

What are the Key Processing Changes? Option Specific Cutoff Times Automated Instructions via ISO 15022 and XML Messages Instruction Approval Process Standing Instructions • Stock Loan Income Tracking Tax Elections [Classification] 12

What are the Key Processing Changes? Allocations at Gross Rate Adjustment for Tax and Fees Intra-day Income Tracking Adjustments [Classification] Post Payable Rate Changes : Reverse and Reallocate 13

Other Key Changes Intra-day Messaging ISO and XML Messages – the current CCF files (e. g. , REORG, REDEM, CMORT, etc…) will be replaced by new XML and ISO 15022 message formats Ø Additional Delivery Option – participants will be able to retrieve data via MQ messaging in addition to current NDM and FTP options Ø Frequency – participants will be able to receive corporate action messages and submit automated elections throughout the day, instead of just end-of-day Ø [Classification] 14

Other Key Changes Customer Dashboard Global Event Support Ø [Classification] Global Coverage – customers can receive corporate actions on global securities, scrubbed by operations located around the world (NY, London, and Shanghai) 15

Current Status • Announcement Create and Maintain functionality in development • External Customer Interviews are in progress • Finalizing Requirements for Announcement Inquiries and Dashboard [Classification] 16

What information is currently available? • • Business/Operations Documentation Ø Data Reference Guide for Event Types Ø Corporate Action Event Scenarios Technical Support Documentation Ø Technical Specifications Guide Ø Data Reference Guide for Fields Ø Transition Plan Ø File Field Mapping from Legacy to ISO/XML Ø ISO Message Specifications Ø XML Message Specifications ** All documentation is available on the DTCC website [Classification] 17

What Customers Should Be Doing? Review Business Documentation Engage IT personnel to review technical documents Identify impact of elimination of “screen scraping” Key decisions Ø Ø Ø [Classification] ISO vs. XML Intra Day vs. End of Day Will you be an early adopter 18

What’s Coming • Based on customer feedback and additional analysis, DTCC will be releasing updated versions of documentation in 2008 Business Documentation – updated business documentation (e. g. , Corporate Action Event Scenarios) was released in July Ø Technical Documentation – updated technical documentation (e. g. , ISO and XML Message Layout) will be released at the end of Q 3 (aligned with the annual SWIFT release) Ø [Classification] 19

What’s Coming • Updated Transition Plan and Dates – Q 4 2009 • First version of new screen designs will be reviewed Third party firm was engaged to perform user research and creation of screen designs that will ensure a great user experience Ø Initial interviews with external users have already been conducted and many more are scheduled Ø First version of prototype will be reviewed in Q 1 2009 Ø [Classification] 20

Questions Additional questions can be sent to: reengineeringmailbox@dtcc. com [Classification] 21