By Edward C. Kelleher

DTCC's multi-year reengineering project, which will bring significant new efficiencies to the industry, entails redesigning the core systems for securities underwriting and corporate actions with a single new platform called the DTCC SOURCE - Securities Origination Underwriting & Reliable Corporate Actions Environment. Below are updates for both sides of the project.

2007 Timeline for the Underwriting Initiative
DTCC has issued an underwriting reengineering project plan for 2007 that covers all phases of the project through final implementation of the initiative in the third and fourth quarters of 2007.

The underwriting initiative will be implemented in phases throughout 2007.

The project plan has start and end dates for external and internal testing for both outbound and inbound recipients, inbound vendor testing, and testing for the New Issue Information Dissemination System for new bond and securities issues. Pilot testing and customer training are also included in the project plan.

"We're on schedule with all our planned activities for the underwriting reengineering, but we still have customers who need to do some catch-up," said Denise Russo, DTCC director, Asset Services. "Some, for example, still need to determine how they will communicate deal information to the depository. Will they use an external bookbuilding/running system? Will they use a direct connection to the depository? Or will they use the new platform's Web-based screens?

"We continued to meet with both bookrunning and data vendors to ensure that they are on schedule and will be able to meet the go-live date in August. At this point, these firms should be testing connectivity with the depository [DTC]." Bookrunning or bookbuilding vendors compile "the book" on bond and security issues, tracking pricing, regulatory compliance, issuance information and other financial investor data, which is submitted to them by the underwriters. Bookrunning vendors are then responsible for submitting the data to DTC to complete requirements for DTC eligibility and the New Issue Information Dissem-ination Service. The new service will centralize and automate the collection and distribution of information on new bond and securities issues. Data vendors are responsible for taking the information from DTC and distributing it to customers and other market participants.

The project plan gives additional testing dates for live data and end-to-end testing. Progress reports on vendors will be posted on the reengineering Web site as they complete the required testing. @

[For more information on the project and to review the new reengineering project plan, visit DTCC's reengineering Web site at www.dtcc.com/reengineering or contact Denise Russo at drusso@dtcc.com or call 212.855.3731.]