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ALF’s Fast Track to DTCC

A Snapshot of DTCCA Snapshot of DTCC

• In the fast-moving, global world of financial services, DTCC provides the most secure, reliable, cost-effective and user-governed post-trade infrastructure in the world.

• Our infrastructure has an increasingly critical role in managing risk and reducing cost throughout the U.S. securities industry and across financial markets globally.

• For more than 34 years, DTCC and its family of companies have helped automate, centralize, standardize and streamline the processing of securities trades and the delivery of financial information.

• Result: greater operational efficiency, reduced risk and lowered cost for our customers across the industry.

• In the fast-moving, global world of financial services, DTCC provides the most secure, reliable, cost-effective and user-governed post-trade infrastructure in the world.

• Our infrastructure has an increasingly critical role in managing risk and reducing cost throughout the U.S. securities industry and across financial markets globally.

• For more than 34 years, DTCC and its family of companies have helped automate, centralize, standardize and streamline the processing of securities trades and the delivery of financial information.

• Result: greater operational efficiency, reduced risk and lowered cost for our customers across the industry.

Like the Subway, DTCC Is Complex, Fast-Moving, High-Volume, Complex, Affordable, Secure, 24/7

An Integrated Infrastructure, Gets You Where You Want to Go

Very Different PlatformsGreater Reliability, Less ExcitementVery Different PlatformsGreater Reliability, Less Excitement

DTCC’s Wide Range of Financial CustomersDTCC’s Wide Range of Financial Customers

• DTCC’s customer base extends to thousands of companies within the global financial services industry including…

• …broker/dealers, banks, institutional investors, trust companies, hedge funds, mutual fund companies, insurance carriers, investment managers, transfer agents, financial planners and other third-party financial intermediaries – either directly or through correspondent relationships.

• In the U.S., DTCC also supports

• The NYSE Euronext Group

• The Nasdaq Stock Market

• The American Stock Exchange

• Regional U.S. exchanges (e.g., Boston, Philadelphia, etc.)

• Electronic trading and communications networks (ECNs)

• DTCC also has dozens of strategic partners and maintains strong working relationships with clearing agencies and depositories in numerous countries worldwide.

• DTCC’s customer base extends to thousands of companies within the global financial services industry including…

• …broker/dealers, banks, institutional investors, trust companies, hedge funds, mutual fund companies, insurance carriers, investment managers, transfer agents, financial planners and other third-party financial intermediaries – either directly or through correspondent relationships.

• In the U.S., DTCC also supports

• The NYSE Euronext Group

• The Nasdaq Stock Market

• The American Stock Exchange

• Regional U.S. exchanges (e.g., Boston, Philadelphia, etc.)

• Electronic trading and communications networks (ECNs)

• DTCC also has dozens of strategic partners and maintains strong working relationships with clearing agencies and depositories in numerous countries worldwide.

DTCC’s Ownership and Regulation DTCC’s Ownership and Regulation

• Ownership: DTCC is owned by its 380 participant shareholders (e.g., broker/dealers, banks, fund companies).

• Board of Directors: 20-member board with 16 from participant firms, one each from NYSE and NASD, two from DTCC senior management.

• Subsidiaries: DTCC subsidiaries are stand-alone entities that fund their activities through transaction fees and maintain adequate capital to support their individual risk profile and operating needs.

• Regulation: Clearing subsidiaries are regulated by the Securities and Exchange Commission (SEC).

• Depository is regulated by the SEC, the Federal Reserve Bank of New York and the New York State Banking Department.

• EuroCCP will be a regulated clearinghouse overseen by the Financial Services Authority (FSA), the independent body regulating financial services in the UK.

• Ownership: DTCC is owned by its 380 participant shareholders (e.g., broker/dealers, banks, fund companies).

• Board of Directors: 20-member board with 16 from participant firms, one each from NYSE and NASD, two from DTCC senior management.

• Subsidiaries: DTCC subsidiaries are stand-alone entities that fund their activities through transaction fees and maintain adequate capital to support their individual risk profile and operating needs.

• Regulation: Clearing subsidiaries are regulated by the Securities and Exchange Commission (SEC).

• Depository is regulated by the SEC, the Federal Reserve Bank of New York and the New York State Banking Department.

• EuroCCP will be a regulated clearinghouse overseen by the Financial Services Authority (FSA), the independent body regulating financial services in the UK.

DTCC: A Financial Profile DTCC: A Financial Profile

• Services at cost: DTCC operates on an at-cost basis, returning excess profit to customers.

• In 2006, DTCC generated revenue of $1.36 billion and returned $580 million in rebates, discounts and interest (on clearing fund reserves) to its customers.

• Credit ratings: NSCC, FICC and DTC all have Standard & Poor’s highest credit rating: AAA/A-1+

• Collateral: Nearly all our customers/participants are required to meet clearing fund requirements and maintain collateral (cash and securities) with us based on their activities and our margining requirements.

• Cost reductions: We consistently look to reduce fees and deliver economies of scale. We are the lowest-cost processor of services in all financial sectors where we operate.

• Services at cost: DTCC operates on an at-cost basis, returning excess profit to customers.

• In 2006, DTCC generated revenue of $1.36 billion and returned $580 million in rebates, discounts and interest (on clearing fund reserves) to its customers.

• Credit ratings: NSCC, FICC and DTC all have Standard & Poor’s highest credit rating: AAA/A-1+

• Collateral: Nearly all our customers/participants are required to meet clearing fund requirements and maintain collateral (cash and securities) with us based on their activities and our margining requirements.

• Cost reductions: We consistently look to reduce fees and deliver economies of scale. We are the lowest-cost processor of services in all financial sectors where we operate.

While Subway Fares Have Been Rising…

DTCC Continues to Lower Fees

*Each trade has two sides: a buy order and a sell order

NSCC’s Average Daily Volume IncreasesNSCC’s Average Daily Volume Increases 2007 vs 1977: Subway, $2 now vs. 50 cents per ride

NSCC, 6 cents now vs. 77 cents per side in 1977.

2007 vs 1977: Subway, $2 now vs. 50 cents per ride

NSCC, 6 cents now vs. 77 cents per side in 1977.

Mapping Our Businesses

NSCC FICC DTC Omgeo Deriv/ DTCC SERV Solutions EuroCCP

DTCC’s

Lines

DTCC: Who We Are DTCC: Who We Are

DTCC is a holding company formed in 1999 that brings together:

1. National Securities Clearing Corporation (NSCC)• Handles clearing and settlement of trades in equities, corporate and municipal bonds, unit investment trusts, index funds and other securities.

• Is the leading processor of mutual fund and insurance transactions in the U.S.

2. The Depository Trust Company (DTC) provides• Securities custody and safekeeping services.• Underwriting and asset servicing.• Settlement for institutional trades, money market instruments and other securities transactions.

3. Fixed Income Clearing Corporation (FICC) provides clearing and risk management for trades in • U.S. government securities and repurchase agreements.

• Mortgage-backed securities.

DTCC is a holding company formed in 1999 that brings together:

1. National Securities Clearing Corporation (NSCC)• Handles clearing and settlement of trades in equities, corporate and municipal bonds, unit investment trusts, index funds and other securities.

• Is the leading processor of mutual fund and insurance transactions in the U.S.

2. The Depository Trust Company (DTC) provides• Securities custody and safekeeping services.• Underwriting and asset servicing.• Settlement for institutional trades, money market instruments and other securities transactions.

3. Fixed Income Clearing Corporation (FICC) provides clearing and risk management for trades in • U.S. government securities and repurchase agreements.

• Mortgage-backed securities.

DTCC: Who We Are (continued)DTCC: Who We Are (continued)

4. In addition, Omgeo – a rapidly growing business that serves the post-trade needs of institutional investors – is DTCC’s international joint venture with Thomson Financial.

5. Deriv/SERV LLC represents the global standard for the post-trade processing of over-the-counter (OTC) derivative transactions.

6. DTCC Solutions LLC operates the world’s most comprehensive global corporate action announcement and managed account service.

7. EuroCCP, based in London, provides clearing, settlement and risk management services for Turquoise, a new pan-European equities trading platform.

4. In addition, Omgeo – a rapidly growing business that serves the post-trade needs of institutional investors – is DTCC’s international joint venture with Thomson Financial.

5. Deriv/SERV LLC represents the global standard for the post-trade processing of over-the-counter (OTC) derivative transactions.

6. DTCC Solutions LLC operates the world’s most comprehensive global corporate action announcement and managed account service.

7. EuroCCP, based in London, provides clearing, settlement and risk management services for Turquoise, a new pan-European equities trading platform.

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NSCC

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NSCC FICC DTC

MBS GSD

Deriv/ SERV

DTCCSolutions

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Omgeo

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EuroCCP

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Trade Ware-house

• Holistic View of Our Customers, Business and Opportunities

• Unified IT and Communications Platform -- interconnecting for customers’ benefit.

• Enterprise Risk Management

• Comprehensive Business Continuity Capabilities

• Integrated Financial Accounting and Plans

• Central Human Resource Department, Wider Career Tracks for Employees

• Now Integrating Our Rules and Membership

• Holistic View of Our Customers, Business and Opportunities

• Unified IT and Communications Platform -- interconnecting for customers’ benefit.

• Enterprise Risk Management

• Comprehensive Business Continuity Capabilities

• Integrated Financial Accounting and Plans

• Central Human Resource Department, Wider Career Tracks for Employees

• Now Integrating Our Rules and Membership

Gains from DTCC Holding Company Gains from DTCC Holding Company

DTCC Presenters on Clearing and Settlement DTCC Presenters on Clearing and Settlement

•John Colangelo, Managing Director Operations, will present The Depository Trust Company

•Marianne Brown, President and CEO, Omgeo, on its role in the US and globally

•Tom Costa, Managing Director, Clearing and Settlement, will present our two Central Counterparty and Clearing Services, National Securities Clearing Corporation and Fixed Income Clearing Corporation

•John Colangelo, Managing Director Operations, will present The Depository Trust Company

•Marianne Brown, President and CEO, Omgeo, on its role in the US and globally

•Tom Costa, Managing Director, Clearing and Settlement, will present our two Central Counterparty and Clearing Services, National Securities Clearing Corporation and Fixed Income Clearing Corporation

ACSDA Members Presenting TheirClearing and Settlement Systems ACSDA Members Presenting TheirClearing and Settlement Systems

•Raquel Beato, Settlement Services Supervisor, CBLC, Brazil

•Gabriela Escamilla, Deputy Chief Executive Officer, BVN, Guatemala

•Luis Cano, Risk Management Specialist, INDEVAL, Mexico

•Raquel Beato, Settlement Services Supervisor, CBLC, Brazil

•Gabriela Escamilla, Deputy Chief Executive Officer, BVN, Guatemala

•Luis Cano, Risk Management Specialist, INDEVAL, Mexico

Many New Destinations with ALFMany New Destinations with ALF