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Welcome toAccount

Administration

Welcome toAccount

Administration

Anthony Anthony Pietanza, Pietanza, Director – Director – Customer Customer Service Service GroupGroup

October 9, October 9, 2007 2007

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Account Administration“On-Boarding”

Account Administration“On-Boarding”

DTCC “On-boarding” is defined as the time from application to activation.

DTC NSCC FICC

GSD MBSD

DTCC subsidiaries

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Membership RequirementsMembership Requirements

Applicants receive similar membership package requirements

Membership Requirements Sheet (“MRS”)

Questionnaire Legal Agreements AML Requirements Foreign Entities require

enhance due diligenceVarious factors affecting type of applicant requirements:

DTCC subsidiary applying for (DTC, NSCC, FICC)

Type of Legal Entity Services requested

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Membership Requirements - Foreign

Membership Requirements - Foreign

DTCC’s Office of Corporate & Regulatory Compliance (“OCRC”) performs due diligence to ensure compliance with Anti-Money Laundering requirements

Financials must be in US GAAP

Documentation submitted must be in English

Applicant must obtain written approval from regulator

Must make Tax Withholding Arrangements

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Preliminary ApplicationReceipt

Preliminary ApplicationReceipt

Account Administration reviews package

It is assigned to an Account Administration Representative who will work with the applicant regarding the completion of the application, legal documents and forms

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Preliminary ApplicationRegulatory RequirementsPreliminary ApplicationRegulatory Requirements

Is the applicant a duly organized entity?

Is the applicant approved to do the business it is applying for?

Does the applicant have any restrictions?

Does the applicant meet the minimum regulatory requirements (e.g. excess net capital)

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Preliminary ApplicationFinancial RequirementsPreliminary ApplicationFinancial Requirements

Each applicant must meet the requirements for the type of service they are applying for. Examples include:

FOCUS Reports Annual Audited

Financials CALL Reports Blue Books (Financial

Statements)

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Legal Documentation and Forms

Legal Documentation and Forms

Applicants are required to execute a number of agreements and forms

Member’s Agreement Legal Opinion Special Undertakings

Agreement (foreign) Corporate Resolution

and Certificate of Incumbency

Settling Bank Tri-Party Agreement

Tax Forms

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Risk DepartmentReview and ApprovalRisk Department

Review and Approval

An in-depth review is conducted by Credit & Market Risk

Once approved Credit Risk notifies the applicant, the Relationship Manager and Account Administration in writing

Approval letter states: Fund deposit

requirement Services approved for Any restrictions

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ActivationActivation

Prior to activation the following steps must be complete

Approval Properly executed

legal documents and forms

Clearing Fund Connectivity Training

MARS

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On-BoardingSummary

On-BoardingSummary

Preliminary Application ReviewLegal Agreements and FormsRisk/Credit ReviewApprovalActivation

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Existing MembersExisting Members

Reconsideration of Membership (expansion of business)

Mergers, Acquisitions and Organizational Changes (MAOCs)

If an existing member is changing their form of organization, ownership structure or proposes changes to their business, the member may be required to complete an application for membership

Notification Of Material Changes Is Required

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Account Administration – “Day to Day” Account Administration – “Day to Day”

Account Administration generates reports and provides daily administrative support to internal departments on existing services.

Important NoticesInternal NoticesAllocation Report/Account ListingOn-Boarding Reports/Monthly New Business Meeting

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Members Activating Additional Services

“Service Add”

Members Activating Additional Services

“Service Add”

Full Service Members can utilize all services

Limited MembersLimited to those services as specified by Rules Approval Agreement Fund Requirement

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Additional Number RequestsAdditional Number Requests

Additional Number Request Additional Number Request

Form “Info Sheet”Form “Info Sheet”

•Limited to those services the parent account is approved for

•Settlement Settlement

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Member On-line Tracking SystemMember On-line Tracking System

MOTS is a fully automated Web application for tracking and reporting

On-BoardingAll new members across all subsidiaries of DTCC

“Events” Member related activity such as:

New ApplicationSettling Bank

ChangesAdditional AccountsRetirement

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MOTSMOTS

MOTS facilitates the coordination of the on-boarding process by providing tools to improve communication Notifications - emailMilestones – from receipt to approval

MOTS provides the ability to cross reference multiple membership events Linking MAOC Processing Report Filter

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Account Administration – Q & AAccount Administration – Q & A