1. Canadian Marketplace Implementing National Instrument 24-101 Institutional Trade Matching & Settlement Jane Davis Executive Director, Canadian Capital Markets Association ISITC Conference - June 4, 2007

2. CCMA Board & Observers

3. 3 NI 24-101 Compels the industry to automate Regulation of trade matching parties Procedural & behavourial post trade changes required Involves front, middle & back office functions

4. 4 Target Dates October 2007 - 80% matched by noon on T+1 January 2008 - 90% matched by noon on T+1 July 2008 - 70% matched on T January 2009 - 80% matched on T July 2009 - 90% matched on T Q1 2010 and beyond - 95% matched on T

5. 5 Key Components Focus on policies and procedures Written acknowledgement of capabilities  Trade matching statement/agreement Phased implementation  Transitional performance targets Performance measurement  Exception reporting Mutual Dependency among trade-related parties

6. 6 Implementation Schedule Effective April 1, 2007 Phased-in transitional performance target dates over an approximate three-year period Documentation in place by October 1, 2007 Exception reporting for fourth quarter of 2007 in February 2008

7. 7 Policies and Procedures Accelerate trade processing from T+1 to T Integrated approach Enhanced electronic transmission Industry best practices and standards Front, middle and back office involved

8. 8 Acknowledgement Written acknowledgement  Trade matching statement  Alternatively a trade matching agreement

9. 9 Accelerating Trade Transmission Acceleration of trade allocations to the custodian (re: investor or fund account) and broker (re: custodian) involves:  Data availability and integrity  Frequency and timing of trade transmission  Late day systems, operations and information availability Change in work schedules Front and back office communication

10. 10 Performance Measurement Trade-matching performance measurement  Data sources  Accuracy  Consistency Development of new reporting Analysis of results Corrective action

11. 11 Mutual Dependency Impacts all trade-related parties  Broker/Dealers  Custodians  Investment Managers Linkage involves third party vendors/ infrastructure providers Standard Data Elements Help to facilitate changing of trading routines (algorithmic/DMA)

12. 12 Conclusion Current industry numbers Active subcommittees / ad hoc working groups Requires “team” culture within and between parties Sharing of best practices Lot of investment of time and money

13. Canadian Marketplace Implementing National Instrument 24-101 Institutional Trade Matching & Settlement Jane Davis Executive Director, Canadian Capital Markets Association ISITC Conference - June 4, 2007