A DTCCThomson Reuters Company BDUG Panel Discussion Omgeo & DTCC Driving Same Day Affirmation Rates: Positioning for Settlement Matching & Shortened Settlement Cycles

A DTCCThomson Reuters Company 2 Driven by SIFMA Objectives Support for Industry Initiatives Offer Economic Incentives Provide Analysis Tools Engage Clients SDA Rates  Eliminate reclaims  Shorten settlement cycles  Increase affirmation rates  Settlement Matching  BCG & DTCC study  SDA & Central Matching  Affirmation incentives  Best practice price alignment  Voice of client  SDA analytics  Billing & usage  Prime Brokers  Custodians  Brokers  Institutions Industry Campaign to Drive “Trade Date Matching” Multi-pronged effort leveraging pricing, new tools & consultation Omgeo’s multi-year plan to raise SDA rates and lower costs

A DTCCThomson Reuters Company 3 n/a ($) n/a ($) n/a ($) n/a ($) n/a ($) 11% 6% 1% 51% 19% 5% 38% 75% 94% SDA: Alignment with Industry Best Practices Incenting Same Day Affirmations (SDA) & Central Matching Custodian Investment Manager Broker Omgeo Community TradeSuite ID OTM & CTM Post-Execution Pre-Settlement Settlement PDQ SETTLEMENT DTCC T T+1,2 T T+3+ T T+1,2 T+3+ ($incentive/transaction) Supporting industry initiatives to facilitate settlement finality & shorten settlement cycles – SDA & Central Matching recognized as key building blocks to achieving industry goals. CTM/Central Match Workflow OTM/Central Match Workflow Confirm Affirm Workflow Performance %* % Omgeo Pricing Incentive** ($) *Omgeo Internal Data June 2012 (US) **Per billed transaction Omgeo’s Affirmation Incentive Program Driving Higher SDA Effective Date for Omgeo’s Affirmation Incentive Program Omgeo Confidential T+3+

A DTCCThomson Reuters Company 4 TradeSuite ID PRICE CHANGES Based on 2012 & 2013 Approved Price Changes (Affirmed Transactions Only) Workflow (Standard Aggregated Transaction Costs) Vol Price Reductions w/ SDA Discount w/Tier Discount Client Impact Confirm/Affirm24%18%26%34%Broker & Custodian Prime Broker24%20%34%43% Prime Broker Broker Custody (SMA)29%30% 40%Broker & Custodian Oasys Trade Match*17%38%*43%48%Broker & Custodian Same Day Affirmations Provide Higher Value Implementing price reductions & incentives 6% Miscellaneous: Other DTCC Ineligible Confirms (Fed, Foreign, etc.) * Auto-Affirm Transactions Only OMGEO & DTCC Transaction Cost Matrix Based on 2012 & 2013 Approved Price Changes Reclaim Rates Affirmed Affirmed/ Exempted Unaffirmed 0.2% Reclaim Rate1.7% Reclaim Rate5.0% Reclaim Rate Omgeo Transaction Workflow Confirm/ Affirm SDA OASYS TradeMatch SDA Confirm/ Affirm T+2 OASYS TradeMatch T+2 Confirm/ Affirm OASYS TradeMatch Confirm/ Affirm OASYS TradeMatch DTCC Settlement Service PDQ DO NDO Combined Cost Differential 0% +4%+8%+114%+116%+32%+72% Omgeo Confidential

A DTCCThomson Reuters Company 5 5  Affirmations controlled by Prime Broker  Highly concentrated target group  Highly automated processes  Precedent set for high SDA rates  Affirmations automated by TradeMatch, in most cases  “Auto Affirm” transactions yield highest SDA rates  “Match-only” configuration inhibitor to SDA rates  Allocation and Broker input timing a factor  Affirmation rates influenced by Custodian  Very broad client segment  Perception affirmations cost more  IMs not receiving confirms (manual processes, global clients, etc.) Prime Broker Prime Broker Confirm Affirm Confirm Affirm OTM Central Match OTM Central Match SDA Analysis: Key Omgeo Target Segments Focus on the “Affirming Parties” (Institutions & Agents) 24% of Total Vol 37% of DTCC Vol 24% of Total Vol 37% of DTCC Vol 17% of Total Vol 26% of DTCC Vol Omgeo Confidential

A DTCCThomson Reuters Company 6 100%74%* 26% SDA Analysis: Workflow Breakdown Confirm Affirm vs. Central Match (OTM) DTCC Eligible Volume * Includes Prime Broker Volumes Note: Based on August data Broker Input Rate on T Affirmation Rates SDA Rate T+2 Rate

A DTCCThomson Reuters Company SDA Analysis: Prime Broker Low SDA rates, high T+2 rates Top Volume Prime Brokers (Performing Role of Institution & Agent) SDA Industry Ave T+2 Industry Ave In Random Order Affirmation Rates Above Average SDA Rate Below Average SDA Rate Above Average T+2 Rate Below Average T+2 Rate

A DTCCThomson Reuters Company 8 SDA Analysis: Agent Banks Above average SDA, low T+2 rates SDA Industry Ave T+2 Industry Ave In Random Order Top 10 Volume Agent Banks (Combined Confirm Affirm & OTM Workflows) Affirmation Rates Above Average SDA Rate Below Average SDA Rate Above Average T+2 Rate Below Average T+2 Rate

A DTCCThomson Reuters Company Top 10 Volume OTM Institutions (Central Match Workflow) Top 10 Volume Confirm Affirm Institutions (Agent Affirming as Institution or on Behalf of Institution)) SDA Analysis: Institutions Central Match driving higher affirmation rates SDA Industry Ave T+2 Industry Ave SDA Industry Ave T+2 Industry Ave Affirmation Rates Above Average SDA Rate Below Average SDA Rate Above Average T+2 Rate Below Average T+2 Rate In Random Order

A DTCCThomson Reuters Company 10 SDA Analysis: Increasing SDA in Short Term Initial findings and recommendations Prime Brokers OTM Institutions Confirm Affirm  3 of top 8 have 89%+ SDA rate - 4 are below average w/high T+1  Move affirmation timings from early T+1 to late on T  Target 5 high volume clients to achieve above average rates  Exhibits lowest SDA rates, especially “Agent as Institution”, “Agent affirming party”  Work with Custodians to explore inefficiencies  Make recommendations and target potential savings  Target high volume clients to achieve above average rates  Auto Affirm” yield highest SDA but anomalies exist “Match Only” clients yield lowest SDA  Move “Match Only” to “Auto Affirm” & investigate anomalies  Work with Brokers & Custodians to explore inefficiencies  Target low SDA clients to achieve above average SDA rate

A DTCCThomson Reuters Company 11 17% Increase Potential SDA Improvements Targeting select Prime Broker, Custodians & Institutions

A DTCCThomson Reuters Company 12  Guide for Omgeo SDA reviews & client consultation process  Identify weaknesses  Make recommendations  Flexible ongoing client analysis tool  Affirmation rates and performance  Operating efficiencies  Counterparty efficiencies & performance  Determine institutional set-ups & workflows  Workflows (i.e. Confirm/Affirm vs. OTM)  Matching processes, (i,e, “Auto Affirm” or “Match only”)  Affirming party (who did the Affirmation?, Agent or Institution?)  Identify client internal accounts (AIA, BIA, etc.)  Evaluate PDQ settlement rates  Breakdown of delivers vs receives  Identify exemption rates  Clarify TradeSuite ID invoices  Transaction volumes by workflow category, asset class, client type, etc.  Bill types, affirmation discounts, etc. Introducing New Data Service in 2014 “Omgeo SDA Analytics”

A DTCCThomson Reuters Company 13 CostReduction Settlement Matching Efficiencies SSCPreparedness SDA MISSION: Benefits to the Industry Eye on US market readiness  Omgeo transaction costs  Operational costs – middle and back office  Fails and related financing costs  Cost benefit from SSC (BCG Study)  Supports settlement finality via “Passive Matching”  Reduces risk of reclaims  Reduces fails & settlement risk  Enables operating efficiencies – middle & back offices  Meets requirement for T+1 settlement  Reduces systemic market risks  Enables more streamlined STP  Reduces credit risk

A DTCCThomson Reuters Company 14 Thank you