National Instrument 24 101 Opportunities and Challenges BuySide

National Instrument 24 -101 Opportunities and Challenges Buy-Side Firms Jane Depraitere, LL. B. , CGA, MBA Director Operations Mawer Investment Management Ltd.

NI 24 -101 Key Components ü ü Focus on policies and procedures Written acknowledgement of capabilities Trade matching statement/agreement Phased implementation Ø Transitional performance targets Performance measurement Ø Exception reporting Ø Analysis and plans Ø ü ü ü Mutual Dependency among trade-related parties 2

NI 24 -101 Policies and Procedures ü Accelerate processing from T+1 to T ü Determine delays in processing ü Enhanced electronic transmission 3

NI 24 -101 Acknowledgement ü Written acknowledgement Ø Trade matching statement Ø Alternatively a trade matching agreement 4

NI 24 -101 Transitional Targets ü ü The key to accelerating trade matching is accelerating the transmission of trade allocation information Acceleration of trade detail allocations to the custodian and broker involves: Ø Data availability and integrity Ø Frequency and timing of trade transmission Ø Late day systems, operations and information availability 5

NI 24 -101 Performance Measurement ü Trade-matching performance measurement Ø Ø Ø Data sources Accuracy Consistency ü Development of new reporting ü Analysis of results 6

NI 24 -101 Mutual Dependency ü Required by all trade-related parties Ø Ø Ø ü Broker/Dealers Custodians Investment Managers Standard Data Elements 7

NI 24 -101 Next Steps ü Assess daily internal processes for trade transmission (front & back office) Ø Review current timelines Ø Evaluate the level of automation required Ø Analyze current applications in place ü Collaborate with other trade-related parties Ø Identify potential changes Ø Data availability ü Access options available ü Develop and implement plans 8

NI 24 -101 Conclusions ü View this change positively ü Use this opportunity to make your trading operation more efficient ü Use this opportunity to bring more STP into your operations to enhance overall efficiency 9

National Instrument 24 -101 Opportunities and Challenges Buy-Side Firms Jane Depraitere, LL. B. , CGA, MBA Director Operations Mawer Investment Management Ltd.