Presentation provides a high level overview of SWIFT and STP Consulting Solutions joint offering to provide business assessments for firms\' corporate actions process.

1. Corporate Actions
Business Assessment

2. Why Focus on Corporate Actions
 For many years managing corporate actions has been one that has
evolved into disparate processes where problems are tackled in a
piecemeal fashion
 With many external parties involved, requiring many manual
operating procedures to be deployed, corporate actions continue as
an area of high risk and cost to all parties
 However, over the past few years concrete progress has been
made to address these concerns through the development of global
standards, market practice and agreement as to how corporate
actions should be processed in the future
“Automation of corporate actions delivers premier customer service, attracts
more business and manages risk in a very, very complex process.”
David Kane, Head of Securities, JPMorgan Chase
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3. Why Now
 A convergence of initiatives that recognize the importance of
collaboration has set the scene to improve corporate action
processing with:
 Interest from Regulators (for example in EU – Giovannini)
 Cooperation between industry organizations (e.g. the Joint Corporate
Action Working Group in Europe)
 New initiatives raising awareness of the current disjointed process
(e.g. the ‘Issuer to Investor: Corporate Actions’ initiative in the U.S.)
 Consolidation around ISO Standards and its supporting Market
Practice
 Now, with greater clarity on how to standardize corporate action
processing and major organizations committing to ISO 15022
and/or 20022 (e.g. DTCC, Euroclear, Clearstream & JASDEC),
financial services firms need to ensure they are ready to be
part of and take advantage of processing improvements.
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4. 2015 DTCC ISO 20022 Mandatory Migration
The Depository Trust Company (DTCC) is adopting ISO 20022
Corporate Action Messages and a mandatory migration to ISO
20022 Corporate Action messages is required for all participants.
 By the end of 2015, all DTCC Corporate Action messages will be in
ISO 20022 format
 The ISO 20022 format is XML based and the standard for Corporate
Actions messages will move from MT to MX
 Regardless if over proprietary line/connection or via SWIFT Network,
all Corporate Action messages will be in ISO 20022 XML format
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5. Why Leverage SWIFT and STPCS
 SWIFT has teamed up with STP Consulting Solutions, a team of
industry experts with experience in implementing corporate action
solutions across a wide range of financial institutions.
SWIFT Consulting Services
 For over ten years, SWIFT has assisted many large and mid-sized firms deal with
operational and processing challenges related to corporate actions.
 The team brings expertise in standardized messaging and industry best practices through
close involvement with ISITC and Securities Market Practice Groups.
STP Consulting Solutions
 By partnering with clients, STP Consulting Solutions LLC provides investment firms with
expertise in evaluating and implementing corporate actions solutions.
 The focus is on providing corporate actions technology and consulting solutions to solve
clients' pain points while reducing risk and cost through technology innovation, evaluation,
and implementation for corporate actions and the back office.
 We are offering a Corporate Actions Business Assessment to help
financial institutions understand where their greatest challenges lie
andConsulting Services
SWIFT
to help them formulate a strategy to address those challenges. 5

6. Assessment Benefits and Value
 We will come onsite and meet with your IT and Operational
Specialists and prepare an “As-Is” and a “To-Be” business
assessment.
 The assessment will highlight the strengths, weaknesses,
opportunities and threats in your corporate actions processing,
and will suggest a roadmap for tactical and long-term
improvements.
 The assessment will also help you:
 Gain greater clarity and understanding of your current state
challenges and pain points
 Help you to determine the scope and solution paths in moving your
corporate actions initiatives forward
 Guide where to invest to get the most value out of your investment
 Provide the groundwork to communicate to senior management a
scope, solution path, and timeline
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7. Assessment Phases
Phase 1 Phase 2 Phase 3
Pre-workshop On-site Workshop Assessment delivery
Strategy & business/IT drivers
Level of granularity
Questionnaire:
Understand Current High level roadmap
State Follow-up Planning
SWIFT and STPCS Recommendations
analysis of client
current state
Validate Key Findings
Detailed expertise
Review current state
and pain points
Assess strengths,
Customize workshop
Review corporate weaknesses, gaps, and
actions features prioritize needs
matrix
2-3 Days 15-20 Days
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8. What should you expect?
 A detailed description of your current, “As-Is”, state:
 Business processes maps (when appropriate)
 Capabilities matrix, prioritization, and assessment ratings
 Assessment documentation
 Systems architecture with communication interfaces (when
appropriate)
 A high level road map for future processes and operations:
 Recommendations and solution options taking into account
internal/external forces and agreed strategic directions
 High-level time-line in perspective with industry initiatives, including
ISO 20022
 Quick Wins providing immediate benefits
“Benefits of the Business Assessment include documentation of “As-Is” environment
and practices, a comprehensive set of “To-Be” recommendations, potential
opportunities and an increased overall and specific knowledge of SWIFT.”
Jim Ricci, Cash Management Product Manager, RBS Citizens Bank
(Source: Presentation at SWIFT SOFA Conference, 2008)
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9. Current State Assessment
Response
Announcements Notifications Instructions Status Entitlements
Capture
Receive the
announcmt A. Instruct Reconcile
Receive Receive the Receive the Send
from data Scrub and custodian / Send status and apply
Notify clients instructions status from entitlement entitlements
providers, load agent to Clients payment or
from clients custodian / from to clients
custodian / stock
agent custodian /
agent B. Instruct
agent
Brokers
LOW HIGH LOW LOW LOW MEDIUM MEDIUM LOW HIGH MEDIUM
Partial Auto Manual Auto Partial Auto Partial Auto Partial Auto Auto Partial Auto Manual Auto
RISK: HIGH, MEDIUM and LOW ratings. The risk is the Automated
potential exposure (based on the value of the
Corporate action) if there is a failure due to a lack Partially automated
of automation and integration leading to errors or
delays Manual
Prioritize improvements in the manual processing “&” highest risk areas
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10. Current State Assessment
From the workshop and subsequent discussions a tailored assessment of the clients corporate
action abilities will be developed to highlight the areas of opportunity.
Announce Outgoing Position Entitle- Response Payments/ Ref Data Workflow,
ments & Notification and Trade ments & Allocations Dashboard
Vendor Integration Instruction , and
Feeds Reporting
FAX HIGH LOW HIGH
Phone LOW HIGH MEDIUM
E-Mail MEDIUM LOW HIGH LOW
ISO
MEDIUM MEDIUM LOW MEDIUM HIGH LOW
messages
Proprietary
Link or LOW HIGH MEDIUM MEDIUM MEDIUM
Integration
User
HIGH MEDIUM HIGH MEDIUM MEDIUM MEDIUM LOW HIGH
Interface
Automated RISK: HIGH, MEDIUM and LOW ratings. The risk is the
potential exposure (based on the value of the
Partially automated Corporate action) if there is a failure due to a lack
Manual of automation and integration leading to errors or
delays
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11. Current State Assessment
From the workshop and subsequent discussions a tailored assessment of the clients corporate
action abilities will be developed to highlight the areas of opportunity.
Areas of process Announcem Outgoing Position and Entitle- Response & Payments/Al Ref Data Workflow,
ents & Notification Trade ments Instruction locations Dashboard,
improvement cut Vendor Integration and
across lifecycle Feeds Reporting
stages and
technology
enablement
through ISO FAX HIGH LOW HIGH
messaging and a
feature rich Phone LOW HIGH MEDIUM
application.
E-Mail MEDIUM LOW HIGH LOW
ISO
MEDIUM MEDIUM LOW MEDIUM HIGH LOW
messages
Proprietary
Link or LOW HIGH MEDIUM MEDIUM MEDIUM
Integration
User
HIGH MEDIUM HIGH MEDIUM MEDIUM MEDIUM LOW HIGH
Interface
Automated RISK: HIGH, MEDIUM and LOW ratings. The risk is the
potential exposure (based on the value of the
Partially automated Corporate action) if there is a failure due to a lack
Manual of automation and integration leading to errors or
delays
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12. Recommendations
Effort/Benefit Overview Targeted integration
initiatives to improve
process
Announcements and
High Vendor Data Short term,
Workflow, Reference
Benefit Dashboard, and
process
Data improvement
Response & Reporting opportunity
Long term, strategic Instruction
opportunity for risk Operational
reduction and Procedures
automation and
Position and Controls
Trade Outgoing
Integration Notification
Medium
Benefit
Payments &
Lower investment Entitlements
Allocations
return
Low
Benefit
High Effort Medium Effort Low Effort
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13. Summary
 In recent years concrete progress has been made addressing
concerns related to the processing corporate actions with a strong
push toward automation
 Major organizations are committing to ISO messaging standards
with a focus on the 2015 DTCC ISO 20022 mandatory migration
 SWIFT and STP Consulting Solutions have teamed together to
address these needs by combining their business and technical
expertise in corporate actions by providing a corporate actions
assessment
 You can expect a detailed “As-Is” overview, a high level roadmap of
recommendations, possible quick-wins in improvements, and a
focused review of your position as it relates to the future of
corporate actions processing
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