Leveraging Our Global Assets:

one dtcc

2015 annual report

Leveraging Our Global Assets

In a world of constant change, DTCC remains a steady force providing stability and protecting the global financial marketplace. A single vision drives us forward – to leverage our global assets to best serve clients across the post-trade lifecycle. We are One DTCC.

year in review

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    DTCC completed its transformation of the way securities transactions in U.S. equities, corporate debt and municipal debt securities are settled through its settlement matching initiative – a major enhancement to the U.S. settlement process that removed approximately $525 billion of risk from the DTC system. The initiative boosts intraday settlement finality, eliminating client credit and liquidity risk while improving straight-through processing and promoting best practices for institutional trade matching.

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  • 2 of 21

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    2015 marked a year of significant momentum for shortening the U.S. settlement cycle from T+3 to a T+2 with the publication of an industry white paper, endorsements from regulators at the U.S. Securities and Exchange Commission (SEC), including Chair Mary Jo White, and the release of a comprehensive Implementation Playbook of milestones and timelines. The steady progress will continue throughout 2016, with high-level end-to-end industry testing and continued dialogue with key regulators. The initiative will culminate in late 2017 with the long-anticipated move to T+2.

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    DTCC advanced its proposal to make structural changes to settlement processing for Money Market Instruments (MMI) to further align its practices with CPMI-IOSCO’s recommendations for intraday settlement finality for depositories. The initiative, which is planned to begin implementation in 2016, will eliminate the risks associated with intraday reversals of transactions in DTC’s MMI system that are the result of issuer failure.

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  • 4 of 21

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    DTCC issued a concept paper that outlined the initial requirements to standardize and expedite the process for transferring client assets between broker/dealers. This enhanced capability is critical for investors navigating a default and compressed liquidation of their broker/dealer. The new process, which is expected to be developed and tested by September 2016, will enable investors to quickly and efficiently move their accounts to a new firm in order to maintain access to their investments while also helping to enhance market stability.

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    The 2010 Flash Crash reinforced that the stability of the financial system is as tied to market structure as it is to market infrastructure. It also underscored that the benefits of automation are diminished without effective risk controls. With average daily trades skyrocketing more than 200% between 2005 and 2015, and market disruptions seemingly occurring more frequently, DTCC partnered with the TABB Group on a research paper that recommended 13 areas for improvement, including uniformity across safeguard rules and the consolidation and integration of tools, such as DTCC’s centralized limit monitoring and exchange kill switches.

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  • 6 of 21

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    DTCC worked with regulators and several ’40 Act Registered Investment Companies (RICs) throughout 2015 to develop a new limited-service membership category to allow for the clearing of Institutional Tri-Party Repo transactions between RICs and existing clients of DTCC’s Government Securities Division (GSD). The new service will decrease settlement and operational risk while providing increased transparency for regulators. The service is expected to launch in 2016.

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  • 7 of 21

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    DTCC’s Fixed Income Clearing Corporation (FICC) began work on simplifying the netting and settlement process by creating a strategy to retire certain inefficient processes in its Mortgage-Backed Securities Division (MBSD). When the streamlined process is implemented in late 2017, trades will be novated upon comparison, and members will face FICC as both an allocation and settlement counterparty, thereby reducing the number of allocation and settlement events and easing operational burden for clients.

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  • 8 of 21

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    The modernization of corporate actions (CA) processing reached another milestone in 2015 with the completion of the third phase of this multi-year initiative to transform the way corporate actions are communicated to clients. First, DTCC migrated over 6,500 clients to the new CA Web, which replaced several legacy systems with an easy-to-navigate and customizable interface that empowers users to manage the entire lifecycle of their corporate action events. Second, DTCC received and processed its first electronic submissions for distribution events using the global ISO 20022 messaging standard, making the firm the world’s first company to adopt ISO 20022 messaging for corporate actions.

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  • 9 of 21

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    DTCC continued to drive efforts in 2015 to replace security certificates with electronic records that reflect the ownership of securities, working collaboratively with the NYSE, NASDAQ and BATS to advance their rule filing mandating participation in the Direct Registration System (DRS) Statement-Only Form for newly listed issues. DTCC also engaged with the Securities Transfer Association (STA) on a new FAST Balance Agreement in support of expanding the FAST program to more agents and issuers, which will reduce the cost of creating, moving and storing certificates for transfer agents.

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  • 10 of 21

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    DTCC’s Insurance & Retirement Services automated carrier-to-carrier annuity exchanges with a new “Settlement for Replacements” expansion to its Settlement Processing for InsuranceSM (STL) offering – an enhancement that will help reduce the risk and cost of moving these funds for millions of investors each year by settling these transactions within one day.

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  • 11 of 21

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    DTCC’s Alternative Investment Product (AIP) Services hit two milestones in 2015: surpassing 100 million transactions for the first time ever – double the number that was processed in 2013 – and also doubling the number of funds on the platform to more than 2,500 unique Security Identifiers. With client adoption increasing by over 100 new accounts last year, more than 450 firms are reaping the benefits of standardized, automated alternatives trade processing.

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  • 12 of 21

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    With implementation of the SEC’s Money Market Reform planned for October 2016, DTCC Mutual Funds is leading discussions with the industry to analyze the implications of the regulation, define new services that will preserve current market efficiencies and identify opportunities to support compliance.

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    DTCC’s Global Trade Repository (GTR) solidified its position as the world’s only truly global repository in 2015, expanding both its client base and geographical footprint to support the OTC derivatives regulatory reporting obligations of 5,500 clients in more than 30 countries. Powered by data centers in Europe, Asia and the Americas, GTR processed over 1 billion messages per month on more than 40 million open positions last year, winning recognition from Futures & Options World as the European Trade Repository of the Year.

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  • 14 of 21

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    DTCC-Euroclear GlobalCollateral Ltd. took several steps toward creating an end-to-end centralized collateral settlement utility. The joint venture successfully created a link between the central securities depositories (CSD) of DTCC and Euroclear to enable seamless cross-border movement of collateral, released the first phases of product code for Margin Transit Utility (MTU) and made a strategic investment in AcadiaSoft to facilitate a link between GlobalCollateral services and a host of leading market participants. In addition, MTU will be the first solution in the industry to support collateral SSI account structures as a result of enhancements to Omgeo ALERT® – one example of how DTCC is integrating its services to support clients more holistically.

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  • 15 of 21

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    Responding seamlessly to increased volatility in the institutional markets, DTCC’s global transaction services, Omgeo Central Trade Manager (Omgeo CTM), OASYS and TradeSuite ID, processed over 817 million trade details in 2015, a 16% increase over 2014. Furthermore, Omgeo CTM affirmed 95% of transactions on trade date last year – a new record for the industry – and a key enabler for clients to meet T+2 settlement cycles in Europe and Asia and to prepare for T+2 in the U.S.

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  • 16 of 21

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    Clarient™ Entity Hub went live with some of the world’s leading banks and asset managers, including Barclays, Credit Suisse, Goldman Sachs, JPMorgan Chase and State Street in 2015 and gained significant momentum as the year progressed, signing more than 90 clients to the utility-based service that simplifies client data and document management. Clarient™ also introduced its Public KYC Service, which delivers Know Your Customer (KYC) data, leveraging DTCC's Avox® solution and evidentiary documents captured from verified public domain sources. The KYC service is expected to deliver over 50,000 validated public KYC records to clients in 2016, helping banks and broker-dealers struggling with the challenges and costs of managing client entity data requirements in-house.

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  • 17 of 21

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    DTCC’s Omgeo ALERT® delivered a number of enhancements in 2015 as it transitions from the industry’s largest database of standing settlement instructions (SSI) into a new utility that will serve as the industry’s “Golden Copy” for SSIs. New capabilities include enabling global custodians to maintain SSI data in an automated and secure environment and facilitating the communication of custodian-sourced SMPG and ALERT-compliant SSI data by connecting a custodian's central SSI repository to the ALERT host using ISO 20022 compliant messaging. Plans for 2016 include a service to automate the capture of “manual” SSIs for executing brokers to enhance processing efficiencies.

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  • 18 of 21

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    DTCC’s Global Markets Entity Identifier (GMEI) Utility has issued more than 200,000 legal entity identifiers (LEIs) to entities from over 184 jurisdictions through year-end 2015, and the service achieved the distinction of issuing approximately 50% of all LEIs worldwide – more than three times the next largest Local Operating Unit (LOU). In 2015, there was a 20% uptick in LEI registrations year-over-year, and steady growth is projected for the coming years as new regulatory initiatives in Europe and the U.S. are expected to mandate further use of LEIs. To continue meeting the needs of clients, LEI codes have been integrated into Avox® Data Services, Clarient™ Entity Hub, Omgeo ALERT® and the Global Trade Repository (GTR), and these services are actively developing links to the GMEI Utility to enable clients to seamlessly register or renew their LEIs as an integrated part of their service.

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    DTCC’s Avox® Data Services had a record-setting year in 2015, successfully researching and publishing data on over 2 million entities globally in its database as more market participants rely on DTCC to help them meet their legal entity data risk management and regulatory reporting obligations. The solution, which integrates with other DTCC data services, including Clarient™ Entity Hub, the GMEI Utility and Omgeo ALERT®, was also recognized as the Best Entity Data Solution by Data Management Review in a poll of more than 500 industry participants and was awarded International Standard Organisation (ISO) 27001 Certification from the British Standards Institution (BSI) signifying that it has the requisite information security controls in place to protect client data.

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  • 20 of 21

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    DTCC launched its newest business line, DTCC Data Products, to provide clients with new and more efficient access to trade data in support of their analysis, risk and operational needs at every stage in the trade lifecycle. Leveraging our unique vantage point in the industry, DTCC Data Products directly sources cross-asset-class trade data captured within DTCC’s clearing, settlement, asset services and trade reporting engines. DTCC also announced Data as a Service (DaaS), an offering to enable clients to view and analyze their own firm-specific data and compare it to market aggregates. Exchange Traded Funds (ETF) composition and historical data is also available from the new centralized service.

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    A community defense model that encourages sharing of and automated action on cyber threat intelligence sits at the heart of Soltra® Edge, which emerged as the leading threat intelligence software in this critical new area last year. By the end of 2015, the software had been downloaded by over 2,000 firms around the world and across critical industry sectors. The growth of Soltra® Edge also served as a driver for the successful adoption of the STIX/TAXII standards, a key development in establishing a common language for the global communication and storage of cyber threat intelligence.

    Downloads of Soltra® Edge by Industry Sector*
    Financial Services 36%
    Consumer 14%
    Computer 12%
    Consulting 8%
    Intelligence 6%
    Others combined 24%

    *Industry sector is self identified by the companies that download the software

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performance dashboard

one dtcc

One DTCC represents a new way of thinking and operating. It reflects the unprecedented degree of collaboration among our employees and the innovative ways that we are integrating our products and services to deliver greater value to our clients and the industry.

we are one dtcc

Simon Daniel

Simon A.X. DanielDTCC London – Product Management for DTCC Omgeo

One DTCC is about partnership and collaboration. As a product manager, I work hand-in-hand with many departments across the company to better serve our clients. On any given day, I’m talking to our Sales & Solution delivery team to discuss business priorities so that we present a cohesive narrative to our clients. I also partner with Industry Relations, clients and industry working groups on key initiatives and the promotion of best practices. The common thread that connects all these interactions is our shared commitment to deliver the highest degree of value to our clients.

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Chris Koutras

Chris KoutrasDTCC Tampa – Technology Risk Management

It’s refreshing to be in an environment where we are encouraged to break down silos across teams and work in a more integrated fashion. In my role, I partner closely with business lines to manage product technology‎ risks, streamline client-facing processes and Information Technology departments to design security into every new DTCC service. I am proud to contribute to DTCC’s mission to protect the safety and soundness of the global financial markets.

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Jyothi Lakashminarayanan

Jyothi LakashminarayananDTCC Chennai – IT Infrastructure

Here in Chennai, we are time zones away from many of our colleagues, but One DTCC allows our voices to be heard and our contributions recognized globally. Through our participation in diversity and inclusion and leadership development programs, we have increased employee empowerment and satisfaction, and this has led to greater productivity and efficiency. Our work ensures that every department in IT has access to the metrics they need to analyze data to make more informed business decisions that help reduce incidents and improve the interactions that clients have with our services.

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Christine Lovelady

Christine LoveladyDTCC Wrexham – Global Operations and Client Service (GOCS)

One DTCC for us means the client experience is 100% consistent and high quality regardless of location and time zone. Our team begins work prior to the start-of-day in the U.S., and the overlap with U.S. working hours allows a seamless handover and speedy and satisfactory resolution of client queries. And that is the most important thing to us – that we are available and able to assist our clients whenever they need our help.

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Ruby Hernandez

Ruby HernandezDTCC Manila – Relationship Management

As an account manager, there’s no better feeling than getting to know our clients and serving as an advisor to them. One DTCC means that I am now the single point of contact for a client, and they know to reach out to me directly for all account-related questions – whether it is about Omgeo CTM or the Global Trade Repository. I also get the opportunity to work closely with our Global Solutions Delivery team to track the progress of client onboarding and engage with our Sales team and others to ensure clients are taking full advantage of the wide range of services we offer.

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Layton George

Layton GeorgeDTCC Jersey City – Applications Development & Maintenance (ADM)

Seeing ourselves as One DTCC is important because it brings all employees together with a single vision to support our clients and the financial markets. Even though we represent many different disciplines, my colleagues and I are all focused on a common goal – to help the industry save on costs and meet their regulatory requirements. I create and maintain tools that benefit our clients and the global marketplace as a whole, and this work aligns with many other initiatives across the company with the very same goal.

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brand architecture

  • clearing services

    DTCC, through its clearing subsidiaries, provides clients with highly efficient clearing services for their U.S. equities and fixed income trades, reducing risk and cost while ensuring the safety and reliability of the financial markets. In the U.S. equities markets, DTCC clears and settles virtually all broker-to-broker equity, listed corporate, muni bonds and unit investment trust transactions. In the fixed income markets, DTCC is the sole provider of automated post-trade comparison and netting in the mortgage-backed securities market, and is the leading provider of trade comparison, netting and settlement for the government securities marketplace.

  • matching, settlement & Asset services

    Clients of DTCC’s central securities depository, The Depository Trust Company (DTC), receive settlement and asset services for virtually all of their equity, corporate and municipal debt trades and money market instruments in the U.S. The payment and transfer of securities ownership occurs at DTC, which provides custody, safekeeping and asset servicing for clients’ global securities issues valued at US$45.4 trillion. DTCC’s Omgeo subsidiary provides clients with a firm foundation for streamlining their middle office processes, enabling 6,500 financial services firms in 52 countries to seamlessly automate their post-trade lifecycle events.

  • Wealth management services

    Wealth Management Services (WMS) drives centralized, automated processing and information services for the mutual funds, alternative investment, insurance and retirement markets. Broker/dealers and other distributors gain from seamless, end-to-end communications with funds, asset managers and insurance companies and their service providers, reducing risk and cost and enabling extensive operational efficiencies.

  • Collateral management

    DTCC is at the forefront of developing innovative global solutions to meet the industry's evolving collateral management needs. Collateral Management services enable clients to automate their collateral management lifecycle and minimize manual intervention, delivering vast operational efficiencies through the Omgeo ProtoColl and DTCC-Euroclear GlobalCollateral Ltd. offerings.

  • Derivatives Services

    DTCC's Derivatives Services, including the Global Trade Repository (GTR) and Trade Information Warehouse (TIW), enables clients, regulators and DTCC counterparts to create capabilities that leverage data in order to mitigate risk, enhance transparency and drive down costs in financial markets globally. With unparalleled tools to help meet regulatory reporting obligations and view the market’s overall risk, DTCC Derivatives Services is well positioned to serve the global marketplace.

  • Data services

    From comprehensive client entity data management services to unparalleled views of data from DTCC’s processing engines and a cutting-edge cybersecurity platform, DTCC’s Data Services enables our clients to tap into a vast universe of data in smarter, faster ways. In today’s competitive market environment, firms require high quality data to help them deliver measurable insights into their markets of interest and be able to respond to industry and regulatory pressures more effectively – mitigating risk, enhancing transparency and driving down costs in global business operations.

risk management

Learn how we are building a risk-centric culture by empowering all employees to act as risk managers. As One DTCC, we are creating a more dynamic approach to protecting DTCC and the industry from risk.

defining innovation

We are proud of our legacy of innovation.Blue Right Arrow

And we are even prouder to continue our tradition of unleashing the creativity, ingenuity and resourcefulness of our employees to bring fresh ideas to new challenges facing our clients.

Tapping the Real Potential of Blockchain

In a year of see-sawing markets, new regulations and stubborn economic growth, 2015 will most likely be remembered as the year that blockchain went mainstream. But can the technology live up to the hype?

A New Approach to Risk Management

As head of DTCC Core Businesses Management for 5 years, Andrew Gray witnessed and helped respond to the evolution and transformation of risk management. As he moved into his new role as Group Chief Risk Officer in 2015, he brought a unique perspective to the job.

Fighting Back Against Cyber Crimes

The phone rings. Another bank’s computer system is under attack. Its network has been compromised. This is the third financial institution today whose network has been breached. Are you being targeted next?

Tackling the Client Entity Data Challenge

When the Aite Group published a study that found 82 percent of firms cited regulation as the driving force behind the need to invest in and improve legal entity data management, it didn’t come as a major surprise to Donna Milrod, Head of DTCC Solutions.

A Boost for Data Sharing and Market Transparency

It was the legislative equivalent of trying to find a needle in a haystack, but in this case the needle kept popping up. Regardless of who read through the more than 800 pages of the U.S. Dodd-Frank Act, it seemed that the team at DTCC kept halting at the same brief section of the bill.

Thinking Beyond the Clouds

Providing safety and certainty to the financial services industry requires DTCC’s team of engineers, programmers and developers to not only have their heads in the clouds, but their feet firmly planted on the ground.

our colleagues

At DTCC, our workplace culture defines who we are – and our shared values guide us, inspire us and propel us to deliver on our mission.

Culture & Values

We are evolving our culture to respond to the broader role we are playing, preserving the qualities that are etched in our DNA and incorporating new characteristics to enable us to succeed in the years ahead.

Learn About Our Culture & Values

diversity & inclusion

Our mission is to fully integrate Diversity & Inclusion into all aspects of our workplace by fostering an environment where every employee is valued, respected and feels welcomed in our community.

learn about our D&I Initiatives

corporate social responsibility

DTCC employees are dedicated to enriching the local communities where we are located by volunteering our time and providing financial support to many important organizations and causes.

learn about our CSR Initiatives

financials

consolidated financial statements

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capital management statement

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