2016 ANNUAL REPORT

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2016 ANNUAL REPORT

TABLE OF CONTENTSLEADERSHIP 3

Message from the CEO

Message from Our Non-Executive Chairman

Board of Directors

Management Committee

Corporate Responsibility and Diversity & Inclusion

OUR BUSINESS 29

Our Vision, Mission and Values

Our Strategic Priorities

Performance Dashboard

Our Businesses

A YEAR OF EXECUTION 41

FROM WHERE WE STAND 51

FINANCIALS 55

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MESSAGE FROM THE CEODear Stakeholder,

From where we stand, 2016 was a year unlike any other – both for the world and DTCC. It is hard to imagine that so much activity, and so much change, could be packed into only 366 days. The seeds of this transformation, first planted in the wake of the financial crisis nearly a decade ago, have now firmly taken root in the form of sweeping new regulations, an extended period of low interest rates, a greater focus on balance sheet and expense management and new fintech innovations – all of which are contributing to substantial financial performance pressure on our clients. How these dynamics, as well as the seismic geopolitical shifts occurring in the U.S. and Europe, will impact the global financial system remain uncertain. What is clear is that financial firms, DTCC included, will remain in a perpetual state of change for the foreseeable future.

During times like these, we must balance today’s needs with tomorrow’s expectations. In a year as unpredictable, volatile and challenging as 2016, we continued to provide the certainty and stability that the markets expect from us, but we also trained our eyes on the future so that we emerge from this period of change stronger and ready to seize new opportunities to support the industry.

As the centralized market infrastructure for the U.S. capital markets, we once again seamlessly cleared and settled an average of about 100 million transactions every business day last year to keep the financial system operating efficiently. Our deep experience managing market events and crises proved invaluable following the Brexit vote in June and the U.S. Presidential election in November. As you’ve come to expect from us, we did our very best work when the pressure was on. Thanks to months of careful planning and analysis, we handled the extreme volatility without incident – reinforcing the value of financial market utilities like DTCC to protect the integrity of the marketplace. Over the course of the year, our core processing engines handled more than $1.5 quadrillion in financial transactions.

MICHAEL BODSON

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A SHARPER FOCUS YIELDS STRONG RESULTS

When we set our minds to a task, nothing can stop us – and that was evident in our efforts to continue improving upon our operating performance and bottom line results. In 2016, revenue increased to $1.71 billion from $1.6 billion, up 7% over the previous year, due largely to higher volumes resulting from market volatility. The up-tick in revenue, coupled with our renewed focus on operating efficiency, enabled us to absorb some non-recurring expenses while still improving our results. Our operating margin grew 106% to $177 million in 2016, up from $86 million in 2015, and our net income before preferred stock dividends nearly tripled to $127 million in 2016 from $43 million the prior year.

While we are an industry-owned and governed financial market utility, we run our businesses with a commercial mindset, identifying and pursuing new opportunities to diversify revenue sources that can drive organic growth while simultaneously keeping a close eye on costs. The nature of our business, particularly in clearing, settlement and matching, is such that market volumes will always be the key determinant of revenues. However, we try to mitigate some of this unpredictability through tight expense control. We believe this is the right approach to deliver maximum value to our clients.

We have a variety of levers at our disposal to achieve this, and we added a new one in 2016 that has delivered immediate results. “The 4 Disciplines of Execution®,” a framework developed by FranklinCovey Co., is used by some of the world’s largest and most successful corporations to improve execution amidst a whirlwind of competing priorities. For a firm like DTCC, which the industry has looked to for greater support since the financial crisis, this framework is helping us become more disciplined in our work and has empowered employees, regardless of level, role or title, to contribute to the success of our most important activities. We are excited to continue embedding this discipline within the organization and bringing added rigor to these efforts in the years to come.

REDUCED LEVERAGE AND SOLID CAPITAL POSITION

Following our $800 million capital raise in 2015, we further strengthened our balance sheet in 2016. We reduced our long-term debt and overall leverage by $94 million. At year-end, DTCC had $65 million of long-term debt outstanding, which is down 87% from the peak level of over $500 million in early 2014. We also improved the liquid capital resources in our clearing agency subsidiaries and parent company on the strength of improved financial performance.

Despite these positive developments, there are times when our stakeholders hold a different viewpoint than we do on certain matters. Such was the case in 2016 with the decision by Standard & Poor’s Financial Services LLC (S&P) to place the AA long-term issuer credit rating of DTCC, along with the AA+ long-term issuer credit ratings of our three subsidiaries designated as Systemically Important Financial Market Utilities (SIFMUs) - Fixed Income Clearing Corporation (FICC), National Securities Clearing Corporation (NSCC) and The Depository Trust Company (DTC) - on

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CreditWatch with negative implications. S&P cited the lack of committed default liquidity resources at FICC as the main reason for this action.

S&P ultimately affirmed DTC’s and NSCC’s long-term issuer credit rating at AA+, acknowledging the companies’ credit strengths, liquidity resources, minimal leverage and strong capital positions. However, despite our efforts to help the agency better understand the robustness of FICC’s liquidity resources relative to its liquidity requirements, S&P chose to downgrade FICC from AA+ to AA and DTCC from AA to AA–. We continue to have discussions with them on this issue and are pleased with the progress we have made toward solidifying FICC’s access to committed default liquidity resources.

RISK MANAGEMENT REMAINS OUR TOP PRIORITY

In a dynamic market and evolving regulatory environment, nothing is more important than risk management, especially as the nature of risk has become more complex, interconnected and unpredictable. In response, we have broadened the types of issues we track and enhanced our capabilities and supporting technology to keep pace with this evolution. For example, we have made significant investments over the past several years to replatform our entire risk management system. As this initiative evolves, we plan to create an internal risk management database holding all trade, position and client information by SIFMU, which will enable us to analyze exposures across all of our SIFMUs and all asset classes holistically and

in near real time. We rolled out key features of the initiative this year, with additional elements expected to go live in 2017. For instance, we’ve implemented 15-minute processing, new portals, enhanced reporting, and liquidity and margin enhancements for NSCC and DTC and a risk data warehouse for DTC. Our goal is to use this technology not only for ourselves, but also to leverage it for our clients to help them better manage risk.

We also made progress this year on two new regulatory requirements issued by the U.S. Securities and Exchange Commission (SEC). The first requirement, Regulation Systems Compliance and Integrity (Reg SCI), is designed to improve the technology infrastructure underpinning the U.S. marketplace. We staged two separate tests with member firms across our SIFMUs and Omgeo in 2016, identifying areas of strength and opportunities. We plan to continue this work by participating in an industry-wide test this year.

The second requirement, resulting from the SEC’s adoption of new standards for covered clearing agencies (CCAS), mandates that our SIFMUs must meet enhanced risk management and financial resource standards given their systemic importance by April 2017. We welcome the SEC’s adoption of the new standards, which will further strengthen the resiliency of the U.S. financial marketplace. Furthermore, finalizing CCAS represents a key milestone towards alignment with the Principles for Financial Market Infrastructures (PFMIs) as well as international equivalence with other jurisdictions’ adoptions of the PFMIs. We are keenly focused on complying with CCAS by the deadline.

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We are also sharing our unique perspective on risk management with our stakeholders globally through the publication of white papers, by hosting conferences and roundtables, and by conducting our Systemic Risk Barometer, a bi-annual survey of risk professionals that tracks global risk trends and emerging threats.

In addition, we remain vigilant in protecting our network and systems against cyber-attack – among the most serious risks facing the industry today. Our employees play a leading role in this effort by helping to identify and report possible cyber threats. At the same time, we continue to enhance areas such as identity and access management, penetration testing and network segmentation to bolster our defenses and strengthen our resilience. We also work across the public and private sectors to promote collaboration and partnership, such as our participation in the Sheltered Harbor initiative and our membership in the Financial Systemic Analysis & Resilience Center (FSARC).

SYSTEMIC RISK BAROMETERRESULTS OVERVIEW – 2016 Q3

KEY FINDINGS

CYBER RISK REMAINS THE TOP RISK OVERALL

■ Cyber Risk remained the top overall risk, with 22% citing it as the single biggest risk to the broader economy and 56% of respondents ranking it within their top five risks.

GEOPOLITICAL RISK IS ON THE RISE

■ The U.S. Presidential Election Outcome debuted as the second most important risk, cited by 50% of respondents as a top five risk. Geopolitical Risk and Britain Exiting the EU (“Brexit”) were cited by 38% and 33% of respondents as a top five risk, respectively.

■ Broader geopolitical risks in aggregate dominated the results and discussion, with multiple selections frequently appearing within respondent submissions.

FEARS OF A GLOBAL ECONOMIC SLOWDOWN HAVE ABATED AMONG RESPONDENTS

■ Macroeconomic concerns, including Risk of Economic Slowdowns across Asia, Europe and the United States, declined compared to the Q1 2016 survey results.

■ Risk of Economic Slowdowns, across all geographic locations, returned to levels comparable to those recorded twelve months ago.

CENTRAL BANK MONETARY POLICY CONCERNS CONTINUE TO INCREASE

■ Central Bank Monetary Policy, including the divergence of policies between the U.S. Federal Reserve Bank and global central banks, as well as unintended consequences of monetary policy, are top of mind concerns for respondents.

REGIONAL DIFFERENCES

■ North American respondents are more concerned about Cyber Security, Decreasing Liquidity and a Sudden Dislocation in Financial Markets than respondents elsewhere.

■ Inversely, respondents outside of North America are significantly more concerned about the impact of Britain Exiting the EU, as well as Economic Slowdowns in Europe and Asia.

FUNCTIONAL DIFFERENCES

■ Risk Managers are more concerned about Interconnectedness Risk, Sudden Dislocation in Financial Markets and Search for Yield than other respondents. Inversely, they are less concerned about Brexit-related risks and the threat of a U.S. Economic Slowdown.

BROAD GEOPOLITICAL RISKS

OF RESPONDENTS IDENTIFIED THE U.S. PRESIDENTIAL ELECTION, GEOPOLITICAL RISK, OR BREXIT AS A TOP 5 RISK

CYBER RISK

#1 RISK

OF RESPONDENTS CITED CYBER RISK AS THE NO.1 RISK22%

83%

TOP SYSTEMIC RISKS

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THE YEAR OF EXECUTION

During 2016, we continued to execute at very high levels across our different business segments as our global team rallied around our call to action to make this “The Year of Execution.” In our SIFMU businesses, we advanced several key initiatives and new innovations that will yield many benefits for our clients. The most significant of this work is the U.S. financial industry’s move to a T+2 settlement cycle for equities, corporate and municipal bonds and unit investment trust trades. Thanks to strong support from a diverse cross-section of stakeholders, including the T+2 Industry Steering Committee and related working groups, we completed

development work, client testing and readiness and are in the final stages of preparing for the September 5, 2017, implementation. This is a major achievement that will strengthen risk management and deliver significant cost savings to market participants over time.

Similarly, we are actively supporting innovation in the fixed income markets, advancing two priority initiatives this year – our Centrally Cleared Institutional TriParty Repo ServiceTM (CCITTM), which will reduce risk and costs in the bilateral repo market, and MBS Operational Novation, which is set to launch in 2017. In our Wealth Management Services group, we have been increasingly focused on developing solutions to help our clients comply with new U.S. regulatory mandates in the asset management and distribution markets, including the Department of Labor’s new fiduciary rule. Like so much of what we do, this work is rooted in our core belief that DTCC should continually pursue improvements in how markets function and enable efficient growth for our clients’ business.

This same commitment is reflected in the initiatives we have underway in many of our DTCC Solutions businesses, which are tackling issues that are impacting jurisdictions across the globe. For instance, with MiFID II expected to transform fixed income and commodities trading in the European markets and significantly impact both the buy- and sell-side, we are growing adoption of Omgeo Central Trade Manager (Omgeo CTM), Omgeo ALERT and the GMEI utility to support our clients. As the GMEI utility is the largest legal entity identifier (LEI) issuer as measured by share of total LEIs issued worldwide, we stand ready to meet any surge in demand for new registrations and renewals, which some have suggested could surpass one million new LEI codes.

DTCC-Euroclear GlobalCollateral Ltd., our joint venture company, is another opportunity for us to help the industry manage new regulatory requirements. In 2016, we went live with the Inventory Management Service (IMS) – a milestone that was applauded by market participants because it enables them, for the first time ever, to seamlessly utilize their DTC assets as collateral in other regions of the world without requiring them to move assets from their DTC accounts. We also completed development of the Margin Transit Utility’sTM (MTU) core service and plan to begin onboarding pilot firms in 2017, including several leading financial institutions.

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Likewise, our Global Trade Repository (GTR) business, which enables financial institutions to comply with derivatives trade reporting rules in the U.S., Europe, Asia and Canada expanded into several new markets and continues to support evolving global reporting requirements. In the future, we intend to create additional integration points between these two businesses, as well as Omgeo ALERT, to maximize the value of our derivatives solutions offerings.

In Asia-Pacific, Omgeo CTM and ALERT are playing a key role in facilitating Stock Connect trades, which have a unique and demanding T+0/T+1 settlement cycle. As future initiatives are launched, such as Shanghai-London Stock Connect, we will continue to expand our support, particularly as trading in RMB grows in response to Chinese firms increasing their regional and global footprint.

NARROWING OUR FOCUS

While 2016 was another strong year for us, it was not without challenges. As we continue to evolve the firm, we made the decision to sell several of our businesses to bring a crisper focus to our activities and better define the opportunities that we will pursue in the future. These actions also reflect how we have become even more rigorous in considering our investments and measuring the value they are providing to the industry as well as the return on investment they are generating for DTCC. This continual assessment ensures that our businesses fit within our long-term strategic framework and are aligned with our clients’ top priorities.

All of these factors led us to the decision to sell Clarient, Avox, Soltra and ProtoColl. While we are very proud of what each of these businesses achieved and the important role they play in supporting the industry, when we examined the broader landscape, our strategy and how we could most effectively help our clients, we determined that selling them to providers who offered complementary services would achieve two imperatives. First, it would create more holistic solutions that could benefit a wider segment of the market. Second, these moves would give us added financial flexibility by freeing up resources to redeploy either in our existing businesses or in new opportunities that can better position DTCC to address challenges in a more competitive environment.

EMBRACING DISRUPTION

2015 will long be remembered as the year that the financial industry discovered blockchain – an electronic ledger of transactions that quickly became the most hyped technological advancement in decades. While the rhetoric may have been overheated at times, the fact is that we are excited by this once-in-a-generation opportunity to reimagine the post-trade infrastructure to address long-standing operational challenges. Throughout much of 2015, we researched, explored and tested the platform while meeting with virtually all of the major technology players in this field. We then assembled an integrated team of subject matter experts from across the enterprise to define potential business applications and established an “Office of Blockchain Strategy and Research” to coordinate activities. We intend to be at the forefront of this issue by helping to spearhead industry experiments and use cases, serving as a leader in the governance of open source, fostering collaboration among market participants and by making strategic investments in partners that can help advance the technology.

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DIVERSITY ENABLES SUCCESS

There are many ingredients that contribute to our success, but one of the most important is our long-standing commitment to Diversity & Inclusion. As we’ve expanded operations to 15 countries in all parts of the world, we’ve gained increased appreciation for the value of a diverse workplace. Our employees represent a powerful force in action – different perspectives shaped by their cultures, ethnicities, religions, orientations and experiences, each bringing their unique points of view to solve challenges. In 2016, we exceeded our overall goal for leadership diversity; surpassed our female hiring target in our Chennai, India office; launched a Emerging Talent Program for Black and Hispanic employees in the U.S.; and partnered with leading LGBT and religious diversity advocacy groups to create a

more inclusive work environment. Our continued progress in these areas is a source of pride for all of us at DTCC, and we pledge to continue making this a priority because diversity creates a stronger and more vibrant organization, one that can tackle and solve the increasingly complex challenges facing the industry.

DEFINING THE FUTURE

In a year of such transformative change, one of our most important corporate undertakings was refreshing our Vision and Mission and setting the foundation of our strategy for the next 3 to 5 years. Over the course of several months, the Strategic Planning Committee of the Board and the Management Committee undertook a comprehensive review of our technology and operations, business portfolio and service model as well as people and skills. As part of this work, we also examined the external trends impacting us and our clients, our competitive position, our ability to invest and the associated constraints and implications. And we debated the value proposition of an industry-owned utility.

The dialogue was often lively and spirited, and we benefited from the diverse perspectives of the group – each person sharing a unique point of view, a sharp insight or asking a challenging question. In the end, we emerged in strong agreement on the most essential and foundational characteristics of DTCC and a clear

understanding of where we want to see the firm in the future. This work informed and infused our new Vision and Mission.

• Our Vision is to be the undisputed leader in post-trade infrastructure through superior execution, risk management and innovation.

• Our Mission is to deliver the world’s most resilient, secure and efficient post-trade infrastructure for our clients.

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The key themes that resonated with us were undisputed leader and world’s best. While we recognize this is an ambitious declaration, our Board members and senior management all agreed that these unique times demand a bold response from us.

A FIRST-MOVER ON FINTECH

A prime example of how we are bringing our Vision and Mission to life can be seen in the leadership we are providing on fintech issues, particularly the use of distributed ledgers. Over the past year, the overheated rhetoric that predicted our demise at the hands of this new technology has been quieted, and now many of the key blockchain players want to engage with us on initiatives. Our industry white paper on applying distributed ledgers to the post-trade infrastructure has become an authoritative source of information on the topic. Our financial investments in Digital Asset Holdings and the open source Hyperledger Project have put us in a position to shape the future of the technology. And our two proofs of concepts related to repo clearing and replatforming our Trade Information Warehouse have placed us at the forefront of innovation.

We are now bringing this same focus to leveraging other new technologies, such as cloud computing, big data analytics, artificial intelligence and machine learning. Make no mistake – we see fintech as a disruptive force. But we also see our role as bringing disruptive technology to our clients in the most beneficial and transformative way possible – and ensuring future applications are focused on protecting market safety and stability.

THANK YOU FOR YOUR SUPPORT

The success of any organization largely rests with its leadership, employees and clients, and we are very fortunate in all three areas. Our Board of Directors, led by Bob Druskin, our non-Executive Chairman, is comprised of experienced leaders who share a fundamental belief in the value that an industry utility can provide to the marketplace. We are grateful for their wise counsel and guidance. Likewise, our senior management team embraces the unique nature of our role in the industry and is committed to building on our legacy. And, of course, our dedicated employees deserve credit for the successes highlighted in this year’s Annual Report and the countless others that we achieved last year. We also thank our regulators for their engagement and oversight and our clients for entrusting us to serve them and for sharing feedback so that we can constantly improve.

While each year writes its own story, we have every intention of shaping the narrative in 2017 and beyond. We will continue to set the bar high and strive for excellence. And when we look back on this moment many years from now, I am confident we will say that we made the most of our time, that we remained true to our heritage, that we made a difference and that we achieved our vision of being the undisputed leader in the post-trade infrastructure.

MICHAEL BODSON PRESIDENT & CEO

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MESSAGE FROM THE NON-EXECUTIVE CHAIRMAN

In looking back at what was a strong year operationally and financially for DTCC, we are pleased with the firm’s performance and especially proud of how the organization managed the impact of the UK’s vote to leave the European Union and the election of a new President in the United States. Smoothly handling events that have a significant market impact is central to DTCC’s mission and reinforces the critical role the firm plays in protecting the financial system.

This past year also saw DTCC continue its evolution into a more commercially oriented and client-focused organization. This transformation began in the wake of the 2008 crisis as a fundamental reshaping of the financial landscape reordered the industry’s priorities, establishing risk management, capital building, cost reduction and compliance as leading issues. DTCC has responded to these changes, but with the velocity of transformation increasing, the Board this year took stock of the global landscape, assessed the company’s progress in

meeting the growing demands of our stakeholders and analyzed opportunities for DTCC to make an even larger impact in the future. We concluded that a comprehensive review of the firm’s strategy was necessary to ensure continued alignment with industry needs, and we formed a Strategic Planning Committee of the Board to lead this work, partnering with management to jointly define a future state vision. Because the Board and management have a strong working relationship, it was not surprising that we shared similar thoughts on where we see DTCC in the next 3 to 5 years. As a result of this effort, we refreshed the firm’s Vision and Mission statements, articulating a set of strategies that will enable DTCC to compete and win in the future.

We challenged ourselves and management on tough questions – Is the horizontal model more or less relevant today than in the past? Are incumbents capable of going head-to-head against new entrants who may bring greater agility to address long-standing challenges? And how can these same incumbents embrace the fintech revolution to quickly deliver new solutions to the market? These are the type of macro issues we’ll need to continue addressing to ensure the firm is prepared for the opportunities and challenges that lie ahead.

Today, many companies see DTCC, in its capacity as a market-owned-and-operated utility, as having the right combination of governance, people and experience to develop the types of innovative products and services that are needed to efficiently meet industry requirements. While the Board strongly supports the firm exploring opportunities to expand into new areas, we share management’s strong commitment to the core functions of clearance, settlement, asset servicing and risk

ROBERT DRUSKIN

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management. We are united in our belief that future initiatives should focus on areas that align closely with these capabilities.

Throughout the year, the Board continued to strengthen relationships with the global regulatory community and devoted considerable time to overseeing the firm’s compliance with all relevant laws and regulations in the jurisdictions in which we operate. We also took a strong interest in efforts around Recovery and Resolution planning, cyber security and enhancements to the firm’s risk management capabilities.

It is an honor to serve as Chairman and to work with an exceptional group of leaders. I want to extend my appreciation to two members who left the Board – Paul Compton and Terry Laughlin. Both Paul and Terry were outstanding partners who made many contributions to DTCC over the years. We also welcomed four new Board members in 2016 – Lester Owens, Lisa Pollina, Paul Simpson and Joseph Weinhoffer. We look forward to working with them to further advance DTCC’s role in the industry. We also lost one of our Board members, Derek Ross, in 2017. Derek was a man of great character, integrity and humility who was passionate about the firm and proud of his affiliation with it, serving DTCC for nearly a decade, first as a Board Member of EuroCCP and, since 2010, on the DTCC Board. He willingly shared his wisdom and experience with us and we are appreciative of his many contributions. He will be greatly missed.

We also appreciate the hard work and strong commitment of all our employees. They live the values of the firm, they drive the initiatives that protect the marketplace and, as a result, they make a difference every day.

Just as the events of 2016 were impossible to predict, 2017 and the years ahead will undoubtedly bring their own set of unanticipated issues, but the Board remains committed to collaborating with management to ensure that DTCC delivers outstanding results to all of our stakeholders.

BOB DRUSKINNON-EXECUTIVE CHAIRMAN OF THE BOARD

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BOARD OF DIRECTORSROBERT DRUSKINNon-Executive Chairman of the Board

ROBERT DRUSKIN is Non-Executive Chairman of DTCC’s board and Chairman of the Board’s Executive Committee. Druskin served as Executive Chairman from April 2011 to December 31, 2015.

Previously, Druskin was Lead Director of E-Trade from May to December 2009, Interim Chief Executive Officer from December 2009 to March 2010 and Chairman of the Board from December 2009 to March 2011.

Prior to that, Druskin spent nearly 16 years at Citigroup and its predecessor companies in a number of senior executive positions across the organization, including Chief Operating Officer and Member of the Office of the Chairman. He also spent four years at Citi’s Global Corporate and Investment Banking division, the last three as Chief Executive Officer.

Druskin was with Salomon Smith Barney (and previously Smith Barney) for nine years and held a number of senior positions, including

Chief Administrative Officer. Prior to joining Smith Barney, he was Chief Financial Officer of Shearson Lehman Brothers.

MICHAEL BODSONPresident and Chief Executive Officer, DTCC; President and Chief Executive Officer of DTC, FICC and NSCC

MICHAEL C. BODSON is President and Chief Executive Officer of DTCC. He is also President and Chief Executive Officer of DTCC’s principal operating subsidiaries, DTC, FICC and NSCC and a member of DTCC’s Board of Directors.

In his prior position as DTCC’s Chief Operating Officer, Bodson had enterprise-wide responsibility for all Information Technology and Operations and oversaw DTCC Deriv/SERV LLC and EuroCCP. He previously served as Chairman of various DTCC subsidiaries, including DerivSERV and Omgeo.

Bodson joined DTCC in 2007 as Executive Managing Director for Business Management and Strategy. Prior to this, he held a number of senior management positions with Morgan Stanley over a 20-year period. In his last position at Morgan Stanley, Bodson was Global Head of the Institutional, Retail and Asset Management Operations Department. He previously served as Divisional Operations Officer for the Institutional Securities Group and Head of the Enterprise Information Group. He served as Head of Finance, Administration and Operations for Morgan Stanley Japan in Tokyo, and prior to that, he held similar responsibilities for Morgan Stanley Asia in Hong Kong. Prior to joining Morgan Stanley, Bodson worked at Bear Stearns and Price Waterhouse.

Bodson is a CPA and graduated Magna Cum Laude from Boston College. He currently is a member of the Board of Digital Asset Holdings, American Red Cross Metropolitan New York North Region and is a Trustee of the World Economic Forum’s Financial Services Initiative.

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ROBERT COLBYChief Legal Officer, Financial Industry Regulatory Authority (FINRA)

ROBERT L.D. COLBY is the Chief Legal Officer of the Financial Industry Regulatory Authority (FINRA), which he joined in June 2012. In this capacity, he oversees FINRA’s corporate and regulatory General Counsel functions, as well as FINRA’s Advertising and Corporate Financing Departments, the Office of Hearing Officers and Dispute Resolution.

Previously, Colby was a partner in the Washington, DC, office of Davis Polk & Wardwell LLP, where he advised on regulatory and compliance matters involving securities and derivatives for financial institutions, markets and clearing organizations.

Before joining Davis Polk in 2009, Mr. Colby served for 17 years as Deputy Director of the Securities and Exchange Commission’s Division of Trading and Markets. In that role, he was responsible for the regulation of broker-dealers, securities markets and clearing organizations. Previously, for 11 years he was Chief Counsel of the Division and Chief of the Division’s Branch of Market Structure.

DAVID C. CRAWFORDExecutive Vice President, Office of Regulatory Initiatives of State Streett

DAVID C. CRAWFORD is Executive Vice President, Office of Regulatory Initiatives of State Street, where he leads a number of regulatory-related endeavors, including intraday liquidity, Volcker Rule conformance, First Line of Defense, Enterprise Content Management Solutions and Third Party Risk Management.

Previously, Crawford was head of State Street’s Global Transaction Banking Services, overseeing the daily processing of all cash and securities-related activities worldwide, including derivatives servicing, cash movement, securities settlement, corporate actions, tax and transaction processing. He also had overall responsibility for State Street’s relationships with central securities depositories and agent banks throughout the 110 markets where our clients invest. The Asset Manager Services group, a dedicated team of relationship managers who ensure investment managers’ satisfaction with State Street’s custody services, also reported to Crawford. These services are delivered by professionals from multiple operating centers around the globe.

Before that, Crawford was director of Financial Information Services, responsible for providing accounting, transaction processing, and related services to the company’s institutional investor services clients. His extensive industry experience includes 11 years in various capacities at The Boston Company/Mellon Trust. He joined State Street in 1982.

He holds a Bachelor of Science degree in management from the University of Massachusetts, Boston and a Master of Business Administration from Babson College.

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PHIL DAVIESManaging Director and Global Head of Operations of Morgan Stanley

PHIL DAVIEs is a Managing Director and Global Head of Operations at Morgan Stanley. In this capacity, Davies oversees all operations support to the Institutional Securities Group, and the Wealth Management and Investment Management businesses. He is a member of the Firm’s Management Committee.

Prior to this, Davies served as Global Head of ISG Product Operations, where he was responsible for the creation and management of Institutional Securities Group Product Operations, managing the support to the Institutional Sales & Trading businesses across all asset classes.

Before Morgan Stanley he worked at Goldman Sachs in London.

He is Vice Chair of the Operations & Technology Steering Committee at SIFMA.

DAVID S. GOONEChief Strategic Officer, Intercontinental Exchange (ICE)

DAVID S. GOONE is Chief Strategy Officer of Intercontinental Exchange, Inc. (NYSE: ICE). He is responsible for all aspects of ICE’s product line, including futures products and capabilities for ICE’s electronic platform.

Goone represents ICE on industry boards including the Options Clearing Corporation and National Futures Association. Additionally, Goone is a Director of Maroon Holding LLC, the governing Board of MERSCORP Holdings, Inc., where ICE has a majority ownership interest. He is also Vice Chairman of the Cetip Board of Directors, a leading operator of capital and credit markets in Brazil, a publicly-traded company in which ICE is a minority shareholder.

Prior to joining ICE in 2001, Goone was Managing Director and Head of Product Development and Sales at the Chicago Mercantile Exchange. Before joining the CME in 1992, Goone served as a Vice President at Indosuez Carr Futures, where he was instrumental in developing institutional and corporate business. Prior to joining Indosuez, Goone worked at Chase Manhattan Bank, where he developed and managed the company’s exchange-traded foreign currency options operation at CME.

Goone earned a Bachelor of Science degree in Accountancy from the University of Illinois at Urbana-Champaign.

SUNI HARFORDManaging Director of Citigroup and Regional Head of Markets for North America

SUNI HARFORD is a Managing Director and Citigroup’s Regional Head of Markets for North America. In this capacity, she oversees the North American sales, trading, and origination businesses of Citi’s securities and banking franchise. Harford is a member of Citi’s Pension Plan Investment Committee, and a Director on the Board of Citibank Canada. Harford also serves on the Board of

Directors of the Securities Industry and Financial Markets Association (SIFMA), the financial services industry advocacy group.

Prior to her current assignment, Harford held a variety of senior positions at Citi/Salomon Brothers including the Global Head of

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Fixed Income Research and the Co-Head of Fixed Income Capital Markets Origination where she led an advisory team focused on financial institutions. From 2010 - 2014, Harford was the co head of Citi’s global women’s initiative, Citi Women.

Harford serves on several non-profit Boards, including Friends of Hudson River Park, Taproot Foundation, and The Forte Foundation. Harford is also passionate about awareness and support for our veteran community, and represents Citi as a founding member of Veterans on Wall Street, a coalition of major financial services firms established in 2010 to engage the broader industry in efforts to support our transitioning veterans.

Harford received her Bachelor of Science degree from Denison University, where she majored in physics and math, and her MBA from The Tuck School at Dartmouth.

MICHAEL HERSKOVITZ (Joined the board on April 4, 2017)

Director of Fixed Income Risk Operations and Technology and Co-head of Enterprise Operational Risk at AllianceBernstein

MICHAEL HERSKOVITZ is the Director of Fixed Income Risk Operations and Technology and Co-head of Enterprise Operational Risk at AllianceBernstein. Herskovitz joined AB in 2006 from UBS, where he was the Managing Director for the Risk and Finance Technology. He has held senior technology

management and quantitative research positions with Morgan Stanley, including the London-based role of international CIO, Merrill Lynch and Zurich Scudder Investments.

Over his 25+ year career in financial services, he has had extensive analytical and technical experience with fixed income, commodities, derivative products and risk management. Herskovitz has co-authored two books and many research papers on mortgage-backed securities pricing and analytics.

He holds a BS in operations research and an MS in industrial administration from Carnegie Mellon University. He has served as Chairperson of the Asset Managers Forum and is currently a member of SIFMA’s Operations and Technology Steering Committee.

LORI HRICIKFormer Chief Executive Officer and Head of JPMorgan Treasury Services

LORI HRICIK is the former Chief Executive Officer and Head of JPMorgan Treasury Services. She is the Chairman of the DTCC Business, Technology and Operations Committee and Compensation/Human Resources Committee. She also serves on the DTCC Executive Committee and the Risk Committee and the Governance Committee.

Hricik retired from JPMorgan in 2008, having become a globally recognized leader in delivering technology-driven treasury, cash management, liquidity, trade finance and information solutions to corporations, financial services companies and government entities worldwide. She worked extensively with the industry and regulators on global payments’ initiatives.

Hricik joined Chase in 1976 from the Securities Industry Automation Corporation and had held a number of executive positions in technology, operations, administration and finance. She earned an MBA from Columbia University.

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DAVID R. KIMMExecutive Vice President, Chief Risk Officer and Treasurer of TD Ameritrade Holding Corp

DAVID R. KIMM is Executive Vice President, Chief Risk Officer of TD Ameritrade Holding Corporation (“TDA”), with responsibility for enterprise-wide risk/control strategies and functions, as well as oversight of liquidity, funding and asset/liability management for TDA and its subsidiaries. He also serves as a member of TDA’s Senior Operating Committee (SOC) which shapes the organization’s

strategic focus.

Previously, Kimm was Senior Vice President/Chief Risk Officer for Wachovia Securities LLC/Wells Fargo Advisors. In that role he established the risk management organization for the third largest U.S. brokerage firm and was responsible for all aspects of enterprise risk management strategy and execution.

Prior to joining Wachovia, Kimm held senior financial and operational roles at LPL Financial, Fidelity Investments, Cowen & Co. and PaineWebber. He holds an MBA from The Stern School, NYU.

KATHLEEN LYNCH (Joined the board on April 4, 2017)

Chief Operating Officer for UBS Americas and Wealth Management Americas (WMA)

KATHLEEN LYNCH is Chief Operating Officer for UBS Americas and Wealth Management Americas (WMA). She serves as a member of the UBS Americas Holding LLC Board of Directors, Combined U.S. Operations Management Committee and WMA Executive Committee.

As WMA COO, Lynch is responsible for the oversight of the front to back control environment and supports the execution of the business division’s strategy, while also ensuring operational efficiency and effectiveness to make WMA a better place to be a client and an employee. Critical areas in her portfolio include technology and operations, risk management and UBS’s regulatory framework.

In her role as Americas COO, Lynch is focused on further integrating all of the firm’s businesses and support functions across the region. She also supports the President of UBS Americas in all regulatory activities and oversees the governance and control framework in the region.

Lynch joined UBS in June 2012 as an advisor to senior management on a number of key initiatives, including the strengthening of UBS’s regulatory and operating framework in the Americas Region.

Most recently, Lynch was Chief Operating Officer of Bank of America Merrill Lynch Global Research, responsible for Publishing & Distribution, Supervisory Analysts, Business Management and various support functions

NICK OGURTSOVChief Operating Officer and Chief Risk Officer of KCG Holdings Inc.

NICK OGURTSOV is KCG’s Chief Operating Officer and Chief Risk Officer. He is responsible for overseeing the firm’s operations and clearing as well as managing the firm’s strategic and operational risk management framework, including the design and implementation of systems and processes to identify, mitigate and assess the firm’s risk exposure.

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Ogurtsov joined GETCO in 2012 and was the firm’s CRO before it merged with Knight Capital Group to form KCG in July 2013. Prior to joining GETCO, he was Managing Director and Global Head of UBS’s high-frequency electronic trading group, EMM Group. He built and managed EMM Group’s global team in New York, London and Tokyo where they traded equities, fixed income and foreign exchange. As a member UBS’s management team for the global cash equities business, he also helped rebuild the firm’s trading technology in the Asia-Pacific region.

He began his career at UBS (formally SBC Warburg) as a convertible bonds trader and later co-headed the equity-linked structured products team.

Ogurtsov earned his B.S. in physics and computer science from Beloit College and a Master’s degree in computer science from the University of Arizona.

LESTER J. OWENSManaging Director, Global Head of Wholesale Banking Operations, JPMorgan

LESTER J. OWENS is a Managing Director at J.P. Morgan responsible for Wholesale Banking Operations across 50+ sites. He manages a global staff of approximately 7,000 employees worldwide and his primary responsibility is managing one of the largest Payment Operations globally.

Prior to joining JPMorgan in 2008, Owens worked for Deutsche Bank as a Managing Director responsible for Transaction Banking Operations as well as serving on the Executive Committee for the Global Transaction Bank.

Before joining Deutsche Bank, Owens was the Site Director at Citibank in Delaware which included Nationwide Receivables, Check Clearing and Customer Investigations. Prior to Citibank, Owens worked for Bankers Trust and Chemical Bank.

Owens holds a B.A from Long Island University, an Executive M.B.A from Fairleigh Dickinson University, and he also attended the Harvard University Executive Management program.

Owens is a Board Member of the RWJ Barnabas Health in New Jersey.

LISA POLLINAImmediate Past Vice Chairman, RBC Capital Markets

DLISA A. POLLINA joined the DTCC Board of Directors on June 15, 2016.

Pollina is the immediate past Vice Chairman for RBC Capital Markets, a division of the Royal Bank of Canada. Previously, she was the Sr. Advisor to the CEO for RBC International regarding strategic corporate development actions globally for various divisions employing over 18,000 and serving clients

in more than 100 countries. She has also served as Sr. Advisor for two of their Boards, the Canadian Trust Company Board and the RBC Dexia Holding Company Board.

Pollina joined RBC from Bank of America where she was the Global Financial Institutions (FIG) Executive responsible for a global corporate banking division serving clients in Asia, EMEA, Latin America, Canada and the United States. Prior to Bank of America, Pollina was a founding partner in Bordeaux Capital and was also selected by Chase Capital Partners/Flatiron, the private equity divisions of JP Morgan Chase, for a management position at an investment portfolio firm.

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Named one of the ‘Top 25 Most Powerful Women in Finance’ by American Banker, she is an Appointee to the Federal Reserve Bank of the United States’ Working Group on Global Markets on which she has served since 2012. Lisa has been a member of the Financial Services Roundtable in Washington DC serving as Vice Chair of the Lending and Leasing Policy Committee for the United States.

In addition to her role on the Board of the DTCC where she is the Chair of the Finance/Capital Committee and Chair of the Audit Committee, Pollina is a member of the Board of Directors for REIT Two Harbors Investment Corp, where she is Chairman of the Risk Committee, and the Senior Advisory Board for Oliver Wyman.

An MBA graduate from the Yale School of Management, Ms. Pollina has taught strategy at Yale and corporate finance at the University of Chicago.

DOUG SHULMANSenior Executive Vice President, BNY Mellon and Global Head of Client Service Delivery

DOUG SHULMAN is Senior Executive Vice President of BNY Mellon and Global Head of Client Service Delivery (CSD) which includes the key business functions and service delivery areas of BNY Mellon. He is also a member of the company’s Executive Committee, the organization’s most senior management body.

Shulman joined BNY Mellon in September 2014 from McKinsey & Co., where he was a Senior Advisor and Harvard’s Kennedy School Center for Business and Government, where he was a Senior Fellow. From 2008 to 2012 he was the Commissioner of the U.S. Internal Revenue Service, where he led the 100,000-person agency and among other accomplishments was responsible for transforming the IRS’s use of data analytics and implementing a major modernization of the IRS key technology.

Previous to the IRS, Shulman served in various roles at the Financial Industry Regulatory Authority (FINRA), including Vice Chairman. He joined FINRA’s predecessor, NASD, in 2000, and ran a variety of functions including Markets, Services, Technology, Strategy and Corporate Development. Previously, he was an entrepreneur and worked for a private investment firm.

Shulman holds a BA from Williams College, an MPA from the Kennedy School at Harvard University and a JD from Georgetown University Law Center..

PAUL SIMPSONGlobal Banking & Markets Operations Executive, Bank of America

PAUL SIMPSON is the Global Banking & Markets Operations executive at Bank of America. He leads a team responsible for operations for institutional and commercial, corporate, investment banking and government clients, as well as small business and business banking clients. The team delivers end-to-end services, support and operations for sales, trading and underwriting businesses and comprehensive financial services solutions, including credit, depository, treasury and trade delivery and support. Simpson also leads

the regional technology & operations teams in Asia Pacific, Europe, Middle East and Africa and Latin America.

Prior to this role, Simpson was managing director and global head of Equity Asset Management Services at Bank of America Merrill Lynch. He was responsible for multiple Global Markets businesses including: Prime Brokerage, Stock Loans, Swaps, Global Custody and Agency Services, Futures & Options, OTC Clearing and Foreign Exchange Prime Brokerage.

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Simpson previously led the Global Transactions Services business, which included payments, liquidity and investments, receivables, trade and supply chain finance and custody and agency services. He has more than 25 years of experience working in the financial services industry, principally in treasury and trade services, public sector and commodities.

Prior to joining the bank in 2011, Simpson was with Citigroup as global head of Treasury & Trade Solutions in the Global Transaction Services group. He joined Citi in 2007 as head of Global Public Sector & Healthcare Markets. Previously, Simpson was with JP Morgan Chase in roles with increasing responsibility within Treasury Services, Public Sector and Healthcare. Earlier in his career he spent time with Deutsche Bank as head of eCash Solutions and head of Trade Services; and with ANZ Banking Group in Trade and Commodity Finance.

He holds a BS in Russian from Georgetown University and an MBA in Finance, Economics and International Business from New York University Stern School of Business. He also studied in Moscow at the Pushkin Institute.

GARY STERNFormer President and Chief Executive Officer, Federal Reserve Bank of Minneapolis

GARY H. STERN was President and Chief Executive Officer of the Federal Reserve Bank of Minneapolis from March 1985 to September 2009. Stern joined the Federal Reserve Bank of Minneapolis in January 1982 as senior vice president and director of research. Before joining the Minneapolis Fed, Stern was a partner in a New York-based economic consulting firm. Stern’s prior

experience includes seven years at the Federal Reserve Bank of New York.

Stern serves on the board of directors of E*TRADE Financial Corporation, S&P Global Ratings, Ambac Assurance Corporation, the Council for Economic Education (CEE) and Hamline University. He is Lead Director and Chair of the DTCC Risk Committee. Stern is co-author of Too Big to Fail: The Hazards of Bank Bailouts, published by the Brookings Institution (2004). Stern is a member of the FDIC’s Systemic Resolution Advisory Committee

Stern holds an A.B. in economics from Washington University, St. Louis, and a Ph.D. in economics from Rice University, Houston. He formerly served as chair of the board of the Northwest Area Foundation, The Minneapolis Club, and Blue Cross Blue Shield of Minnesota. He was also a board member of FINRA, the Dolan Company, Minneapolis College of Art and Design, and ETS. Stern is the recipient of the 2009 Visionary Award from CEE and the Distinguished Alumnus Award from Washington University’s College of Liberal Arts in 2010.

UMESH SUBRAMANIAN (Joined the board on April 4, 2017)

Co-Head of Technology Division, Goldman Sachs

Umesh Subramanian is Co-head of the Technology Division at Goldman Sachs. He is a member of the Firmwide Risk Committee, Firmwide Finance Committee, Firmwide Model Risk Control Committee, Firmwide Technology Risk Committee and Investment Banking Division Technology Investment Committee. Subramanian also chairs the Technology Americas Diversity Committee.

Previously, he was global head of the Finance Engineering team, which included Market, Credit, Liquidity and Operational risk functions along with the Capital and Controllers engineering teams. Before that, Subramanian was global head of Investment Banking and Merchant Banking Division Strats, where his team provided quantitative structuring and analytical advice to Investment Banking clients and helped the divisions manage lending and investment-related risks.

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He joined Goldman Sachs in 2005 and was named managing director in 2008 and partner in 2014. Prior to joining the firm, Subramanian worked at Morgan Stanley.

Subramanian earned a BTech in Mechanical and Industrial Engineering from the Indian Institute of Technology, Madras, in 1997 and an MS in Industrial Engineering and Operations Research from the University of Illinois at Urbana-Champaign in 1999. He is a CFA charterholder.

LARA J. WARNER (Joined the board on April 4, 2017)

Chief Compliance and Regulatory Affairs Officer, Credit Suisse Group and Credit Suisse

LARA J. WARNER is the Chief Compliance and Regulatory Affairs Officer, Credit Suisse Group and Credit Suisse. As CCRO, Warner is responsible for all compliance and regulatory matters for Credit Suisse globally and across all businesses and functions.

From 2010 to 2015, Ms. Warner was the Chief Financial Officer (CFO) for the Investment Banking (IB) division and a member of the IB Operating Committee. Since 2013 through to her appointment as CCRO, she was also the Chief Operating Officer (COO) for the IB division.

Prior to her CFO and COO roles, she was the Global Head of Fixed Income and Economic Research, and also served as Head of U.S. Equity Research. Warner joined Credit Suisse in 2002 as a senior equity research analyst covering the cable television, wireline and wireless telecommunications services and satellite industries. Prior to joining the Credit Suisse, Ms. Warner was a senior research analyst at Lehman Brothers, where she covered the cable television industry. Before joining Lehman Brothers in March 2001, Warner spent 10 years at AT&T, where she held a number of leadership roles including Director of Investor Relations and Chief Financial Officer for AT&T’s Competitive Local Exchange business unit efforts in the U.S.

Ms. Warner is Chair of the Women’s Leadership Board of Harvard University’s John F. Kennedy School of Government, a Board Member of the Aspen Institute’s Business and Society Program, as well as Member of the Board of Visitors of Smeal College, Pennsylvania State University. Ms. Warner holds a B.S. from Pennsylvania State University.

JOSEPH WEINHOFFERTreasurer and Chief Investment Officer of EDF Man Capital Markets Inc. (MCM)

JOSEPH WEINHOFFER is Treasurer and Chief Investment Officer of EDF Man Capital Markets Inc. (MCM) with responsibility for firm financing, capital management, bank relationships, investing client segregated assets and supervising fixed income trading for MCM and its affiliates.

Prior to joining MCM in 2014, Weinhoffer was a Managing Director at Mitsubishi UFJ Securities (MUS) responsible for U.S. Treasury, repo and stock loan. Before joining MUS in 2009, Weinhoffer was at Annaly Capital Management where he established RCap Securities. From 2001 until 2008, Weinhoffer was the Founder and CEO of Quadriserv, a stock loan marketplace. Prior to Quadriserv, Weinhoffer served at Morgan Stanley, Merrill Lynch and Bank of New York. Prior to his civilian career, Weinhoffer served in the U.S. Army for five years.

Weinhoffer is a graduate of the United States Military Academy and the Columbia Business School and is CFA and CAIA chartered. He is also Chairman of the Board of Trustees of Oratory Preparatory School in Summit, NJ.

Darryll Hendricks, Cynthia Meyn, Derek Ross and Paul Walker served on the Board in 2016. Derek Ross, who has served on the DTCC Board since 2010, passed away in 2017.

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MANAGEMENT COMMITTEEMICHAEL BODSONPresident and Chief Executive Officer, DTCC; President and Chief Executive Officer of DTC, FICC and NSCC

MICHAEL C. BODSON is President and Chief Executive Officer of DTCC. He is also President and Chief Executive Officer of DTCC’s principal operating subsidiaries, DTC, FICC and NSCC and a member of DTCC’s Board of Directors.

In his prior position as DTCC’s Chief Operating Officer, Bodson had enterprise-wide responsibility for all Information Technology and Operations and oversaw DTCC Deriv/SERV LLC and EuroCCP. He previously served as Chairman of various DTCC subsidiaries, including DerivSERV and Omgeo.

Bodson joined DTCC in 2007 as Executive Managing Director for Business Management and Strategy. Prior to this, he held a number of senior management positions with Morgan Stanley over a 20-year period. In his last position at Morgan Stanley, Bodson was Global Head of the Institutional, Retail and Asset Management Operations Department. He previously served as Divisional Operations Officer for the Institutional Securities Group and Head of the Enterprise Information Group. He served as Head of Finance, Administration and Operations for Morgan Stanley Japan in Tokyo, and prior to that, he held similar responsibilities for Morgan Stanley Asia in Hong Kong. Prior to joining Morgan Stanley, Bodson worked at Bear Stearns and Price Waterhouse.

Bodson is a CPA and graduated Magna Cum Laude from Boston College. He currently is a member of the Board of Digital Asset Holdings, American Red Cross Metropolitan New York North Region and is a Trustee of the World Economic Forum’s Financial Services Initiative.

PAULA ARTHUSManaging Director and Head of Omgeo and Data Services, DTCC

PAULA SAUSVILL ARTHUS is Managing Director and Head of Omgeo and Data Services. As President and CEO of Omgeo, a wholly owned DTCC subsidiary, Arthus leads day-to-day operations and new business and product development for the firm, as well as manages the Company’s relationship with the Omgeo Board of Managers. In addition to leading Omgeo, she is responsible for overseeing key DTCC data

businesses, including the Global Markets Entity Identifier and DTCC’s emerging Data Products business.

Arthus was most recently Managing Director, Chief of Staff and head of Enterprise Planning at DTCC, a position she held until early 2014. During that time, she oversaw the company’s business planning, new initiatives approval process, enterprise program management and coordination and programming for the DTCC Board of Directors. She served as Vice Chair of DTCC’s Diversity and Inclusion Council from 2009-2014.

Arthus held several other senior positions since joining DTCC in 2005 and was a member of the Omgeo Board of Managers from 2008 to 2011. Prior to joining DTCC, she had a long and successful career at JPMorgan Chase, including senior leadership roles in IT and heading up the investment management operations insourcing business.

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SUSAN COSGROVEManaging Director and Chief Financial Officer

SUSAN COSGROVE is Managing Director and Chief Financial Officer, leading DTCC’s global finance and treasury teams and overseeing the company’s efforts to strengthen further its financial processes and capital position. She is also responsible for strategic sourcing, real estate, corporate services and location strategy.

Cosgrove was previously Managing Director and General Manager of Settlement and Asset Services, overseeing all depository businesses. Prior to this role, she was the General Manager for DTCC’s Equity and Fixed Income Clearing Services. Cosgrove is a member of DTCC’s Management Committee. She also serves as a member of the Board of Directors for DerivSERV, Omgeo and Pencil.org, a not for profit organization leading collaboration between business and education communities.

Prior to joining DTCC in 1999, she served as a Senior Vice President at Lehman Brothers in charge of Audit and Compliance for the company’s Americas division. Before Lehman, she worked at Maxcor Financial Group for 10 years as Chief Financial Officer and Head of Compliance. Cosgrove began her career as a Senior Auditor for PricewaterhouseCoopers in their Financial Services Group.

ROBERT GARRISONManaging Director and Chief Information Officer

ROBERT GARRISON is DTCC’s Managing Director and Chief Information Officer, with enterprise-wide responsibility for the ongoing development and testing of all the technology that supports DTCC’s post-trade infrastructure, communications networks, processing and messaging systems, and the IT applications underlying DTCC’s broad range of products and services.

Garrison became CIO in July 2011. Prior to joining DTCC in October 2010 as a Managing Director and Chief Development Officer of the Information Technology division, Garrison spent 25 years at Morgan Stanley working in various senior technology-leadership positions.

ANDREW GRAYManaging Director, Group Chief Risk Officer

ANDREW GRAY is Managing Director, Group Chief Risk Officer, with global responsibility for all aspects of DTCC’s Risk Management, including Credit, Market & Liquidity Risk, Operational Risk Management and Systemic Risk, Information Security and Technology Risk Management, Business Continuity Management and Global Security Management. Gray also has responsibility for DTCC’s Enterprise Data Management program. Prior to this role, Gray served as Managing Director, Core

Business Management, with overarching responsibility for DTCC’s businesses, including Clearance and Settlement of Equities and Fixed Income products, Asset Services, Wealth Management Services, Insurance & Retirement Services, Omgeo and Data Services as well as the firm’s Marketing & Communications function. Gray serves on the Supervisory Board of EuroCCP NV (the largest cash equities clearing firm in Europe) and on the Board of the International Securities Services Association (ISSA).

Before joining DTCC in September 2009, Gray spent more than a decade with Merrill Lynch. Most recently, he served as Managing Director and Chief Operating Officer for Merrill’s Latin American and Canadian businesses. Prior to that, he was

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a Managing Director in Strategy and Business Development for Merrill’s Global Markets and Investment Banking businesses and for Global Securities Research & Economics. Previously, Gray was a principal at Booz-Allen & Hamilton, the global management consulting firm.

TIMOTHY KEADYManaging Director and Head of DTCC Solutions

TIMOTHY KEADY is responsible for leading DTCC’s Solutions businesses of derivatives, collateral, institutional post-trade processing (i.e., Omgeo products), entity data (e.g., Avox Data Services), and data products, including DTCC’s joint venture companies of Clarient Global LLC., and DTCC-Euroclear Global Collateral Ltd. As Chief Client Officer, he is also responsible for leading the company’s sales, relationship management, global solution delivery and marketing & communications functions which

support the company’s global client base and drive increased enterprise-wide client value across all services.

Prior to his current role, Keady was Managing Director of Sales & Solution Delivery for Omgeo, overseeing the Sales, Relationship Management, Global Partners, Global Marketing, Sales Planning & Execution and Integration teams. During his 20 year career in financial services, he has created multiple programs, products, and initiatives that have successfully secured strategic partnerships, streamlined processes for maximum efficiency, and penetrated new, international markets for Omgeo’s products and services. He has consistently played a key role in recognizing customers’ needs and aligning them with revenue-enhancing solutions worldwide.

Before joining Omgeo, Keady was an account executive at Thomson Financial ESG. He has also held sales positions at Fidelity Investments Institutional Services Co. and Keystone Mutual Funds.

ANTHONY PORTANNESEManaging Director, Human Resources

ANTHONY PORTANNESE is Managing Director of Human Resources and a member of DTCC’s Executive Committee and Operating Committee. He is responsible for leading all global human resources activities, including the planning, design and delivery of corporate compensation and benefit programs, executive compensation programs, employee relations, talent strategies and diversity.

Portannese joined The Depository Trust Company (DTC) in 1981. During his career at the company, he has held numerous leadership roles within Human Resources, Operations, Real Estate and Corporate Services. He was promoted to Managing Director in 2005 and serves as chair of the Scholarship Foundation Board of the Borough of Manhattan Community College.

MURRAY POZMANTERManaging Director and Head of Clearing Agency Services and Global Ops

MURRAY POZMANTER is Managing Director and General Manager in charge of all DTCC’s SIFMU (Systemically Important Financial Market Utility) businesses. He also leads a consolidated Clearing Agency Services team, where he has responsibility for the development and marketing of products and services related to DTCC’s post-trade processing of transactions. In addition, Pozmanter oversees DTCC’s Global Operations & Client Services teams.

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Prior to joining DTCC in 2007 as Managing Director, Pozmanter was at Nomura Securities for 18 years, where the last position he held was Managing Director and Head of US Operations. At Nomura, Pozmanter was responsible for all fixed income, equity, and derivatives operations for all U.S. subsidiaries of Nomura Holding America. Before joining Nomura, Pozmanter spent six years at Salomon Brothers Inc.

He is a member of the Treasury Market Practices Group, as well as SIFMA’s Funding Division Executive Committee and Operations and Technology Steering Committee. He has also been a member of the DTCC’s Operations Advisory Committee.

ANN SHUMANManaging Director and General Counsel, DTCC

ANN SHUMAN is Managing Director and General Counsel at DTCC. As General Counsel, she is responsible for managing the company’s global legal team and advising senior management and the firm’s Board of Directors on legal and regulatory matters. Shuman is also a member of the Management Risk Committee.

Shuman joined DTCC in 2014 as Managing Director & Deputy General Counsel. She has served on both the Operating Committee and the New Initiatives Committee. Prior to joining DTCC, Shuman was a senior executive at CME Group for thirteen years, holding positions in the legal and corporate development functions, where she worked on many of the company’s significant strategic transactions and its responses to regulatory reform proposals.

Shuman began her legal career as a law clerk for the U.S. Court of Appeals for the Fifth Circuit and practiced at Sidley & Austin in Chicago before joining CME Group.

LARRY E. THOMPSONVice Chairman of DTCC and Chairman of the Board of DTCC Deriv/SERV LLC

LARRY E. THOMPSON is Vice Chairman of DTCC and Chairman of the Board of DTCC Deriv/SERV LLC. As Vice Chairman, Larry leads DTCC’s public policy engagement with key regulators and lawmakers globally and serves as a senior advisor to the firm. He is also the Chairman of the DTCC Operating Committee and a member of the Management Committee.

Larry began his legal career with The Depository Trust Company (DTC) as Associate Counsel in 1981. He was elected Vice President and Deputy General Counsel in 1991, Senior Vice President in 1993, General Counsel of DTC in 1999, Managing Director and First Deputy General Counsel of DTCC in 2004, and to General Counsel in 2005. Previously, he was a partner in Lake, Bogan, Lenoir, Jones & Thompson. Larry began his legal career at Davis Polk & Wardwell.

Larry is a 2005 David Rockefeller Fellow and also former Chairman of the Securities Clearing Group and former Co-Chairman of the Unified Clearing Group. He also serves as an Independent Director on the Board of Directors of The Federal Home Loan Bank of New York (FHLBNY).

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DIVERSITY & INCLUSION

28© 2016 DTCC

2016 ANNUAL REPORT

AWAR

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CORPORATE SOCIAL RESPONSIBILITY

29© 2016 DTCC

2016 ANNUAL REPORT

30© 2016 DTCC

2016 ANNUAL REPORT

VISION

To be the undisputed leader in post-trade infrastructure through superior execution, risk management, and innovation

MISSIONTo deliver the world’s most resilient, secure, and efficient post-trade infrastructure for our clients

VALUES

Lead with integrity • Focus on clients • Partner for results • Deliver excellence • Develop employee potential

OUR VISION, MISSION AND VALUES

31© 2016 DTCC

2016 ANNUAL REPORT

OUR STRATEGIC PRIORITIESDTCC’s strategic priorities set the foundation for our work, guide our activities and focus us on the most important initiatives to support all our stakeholders. All our projects are underpinned by these priorities.

RISK

Strengthen the security and resiliency of the capital markets

EFFICIENCY

Increase value through continuous improvement in post-trade infrastructure

INNOVATION

Pioneer industry-wide, post-trade solutions

ENGAGEMENTStrengthen industry partnerships and regulatory relationships

TALENT

Foster a culture of collaboration, creativity, and execution

32© 2016 DTCC

2016 ANNUAL REPORT

OUR SERVICES

33© 2016 DTCC

2016 ANNUAL REPORT

PERFORMANCE DASHBOARD

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DTCC continued to drive the U.S. financial industry’s preparations for the long-anticipated move to shorten the settlement cycle for equities, corporate and municipal bonds, and unit investment trust trades from T+3 to T+2. In 2016, we focused our energies on completing development work, client testing and readiness, and submitting rule changes to the U.S. Securities and Exchange Commission (SEC) to ensure a smooth transition for firms on September 5, 2017. On the regulatory front, we joined with the T+2 Industry Steering Committee and working groups to submit letters of support to the SEC for its proposed T+2 rule amendment.

For the third year in a row, DTCC was honored by Waters Technology as the Best Sell-Side Clearing Provider in the magazine’s 14th annual awards – a widely recognized benchmark of success. “DTCC continues to focus on both its core competencies of improving data standardization and harmony, and branching out its services into new arenas,” the publication said. As the centralized infrastructure for the U.S. capital markets, we seamlessly processed $1.5 quadrillion in financial transactions in 2016, helping to protect the integrity of the financial system and provide stability and certainty during a year of heightened volatility.

DTCC responded to sweeping regulatory changes to the U.S. mutual funds industry resulting from the SEC’s Money Market Reform by launching several enhancements to its Mutual Fund Services to help the industry comply with new operational requirements. These upgrades, the byproduct of two years of intensive work in collaboration with clients and industry working groups, include new features in Fund/SERV®, Networking and Mutual Fund Profile Service that enable funds to communicate key money fund data, including liquidity fees, redemption gates and multiple daily net asset value (NAV) strikes.

RISK

43© 2016 DTCC

2016 ANNUAL REPORT

DTCC’s subsidiary operating the GMEITM utility, which recently received official accreditation from the Global Entity Identifier Foundation (GLEIF), reaffirmed its position as the largest Local Operating Unit (LOU) in 2016 with more than 230,000 legal entity identifiers (LEIs) issued to entities from more than 184 jurisdictions since its launch in 2012. We continued to see steady growth of LEIs registered in 2016 and expect the pace of new registration to increase next year as MiFID II, a new regulatory initiative in Europe, is expected to be implemented in January 2018. In addition, a complete redesign of the GMEI utility web site last year created a more user-friendly experience and streamlined the registration and renewal process for clients.

DTCC-Euroclear GlobalCollateral Ltd. continued to build a global community in preparation for launching the Margin Transit UtilityTM (MTU) pilot program in early 2017. Several of the world’s largest fund administrators, brokers and asset managers have expressed support for the MTU in preparation for new financial rules that will require them to create thousands of new segregated collateral accounts, support hundreds of thousands of new margin calls and manage over a trillion dollars in additional collateral. Focus will remain on further growing client adoption and the on-boarding of brokers and buy-side firms in 2017.

The DTCC Global Trade Repository (GTR), through locally registered trade repositories, continued to build its community and geographical scope in 2016, adding trade repository services throughout Canada to now cover all provinces and territories in the country for OTC derivatives transactions, including rate, credit, equity, FX and commodity derivatives. As the world’s only truly global provider of trade repository services, we support the OTC derivatives regulatory reporting obligations of over 6,000 firms in 7 jurisdictions. In recognition of this outstanding work, GTR was recognized by Futures & Options World for the second consecutive year as the “Trade Repository of the Year.”

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2016 ANNUAL REPORT

FICC’s Government Securities Division (GSD) continued to advance an innovative suite of new and enhanced services to expand the availability of central clearing to the bilateral repo market. GSD’s Centrally Cleared Institutional TriParty Repo ServiceTM (CCITTM) will allow eligible institutional cash lenders to join GSD as limited members to clear eligible tri-party transactions with existing GSD members, pending regulatory approval. GSD is also expanding its existing Sponsored Membership Program, which allows well-capitalized bank members to sponsor eligible clients into GSD membership. Client eligibility is currently limited to Registered Investment Companies (RICs). FICC will permit all Qualified Institutional Buyer clients of sponsoring banks to have their eligible activity novated to FICC, pending regulatory approval.

FICC completed development work on the MBS Operational Novation initiative in 2016, paving the way to launch the initiative in 2017, pending regulatory approval. With MBS Operational Novation, clients will face FICC as a single counterparty for all mortgage-backed securities transactions (with the exception of options), and these transactions will be novated upon being fully matched. FICC expects that this initiative will create efficiencies that will allow clients to eliminate a significant number of their Electronic Pool Notification (EPN) messages, resulting in fewer settlements at the clearing banks.

DTCC’s multi-year Corporate Actions Transformation enters its final phase in 2017 after deploying Redemptions life cycle functionality last year. This project is transforming how corporate actions are communicated to clients thanks to the transition to ISO 20022 messaging and a new web-based user interface, called “CA Web,” which has replaced countless files and legacy platforms that have evolved over the years. Among the benefits of this single platform are increased automation and ease of use for clients, which help reduce risk, enhance efficiencies and drive down their costs of corporate actions processing.

EFFICIENCY

45© 2016 DTCC

2016 ANNUAL REPORT

DTCC made it easier for fund administrators, financial advisors and broker-dealers to support fund set-up, valuation reporting and order processing with the launch of an updated web-based platform for its Alternative Investment Product (AIP) Services in 2016. By enabling alternatives trade processing over the web, the interface makes AIP immediately accessible and delivers greater scale and increased efficiencies to the marketplace. We also set two new records in AIP processing last year – activating more than 250 accounts and handling its 180 millionth transaction.

2016 marked the 30th anniversary of Fund/SERV, our inaugural offering for the mutual funds industry that transformed the sector and helped pave the way for its tremendous growth. By automating mutual fund trading, order confirmation, settlement, fund account registration and other critical back-office processes, Fund/SERV gave fund companies and distributors the tools they needed to streamline operations and eliminate mountains of paperwork and time-consuming manual processes. Today, we support more than 1,400 clients, processing 900,000 daily orders for the $16 trillion mutual fund industry.

2016 was a year of milestones for Omgeo ALERT®, processing more than 6.6 million standing settlement instructions (SSIs), achieving a 98.76% compliance level and going live with two global custodians on its Global Custodian Direct (GC Direct). In addition, ALERT now contains over 1 million FX and cash-based SSIs, up 13.5% in 2016. Three new enhancements were also launched last year – ALERT Automating SSIs Together (ASSIsT), Collateral SSIs via ALERT Web, and a third-party enrichment application interface (API) – which completed the functional requirements to establish a true SSI Utility.

46© 2016 DTCC

2016 ANNUAL REPORT

DTCC’s Omgeo Central Trade Manager® (Omgeo CTM), OASYS and TradeSuite ID® processed almost 1 billion trade details in 2016 – a 5% increase compared to 2015. Approximately 3,700 firms globally use these services, and an increasing number of them are leveraging Omgeo CTM to process equity swap and repo trades. Reduced pricing for Omgeo CTM and TradeSuite ID, along with a new, simplified rate card and billing transparency tool for TradeSuite ID, were introduced last year. These enabled clients to reduce costs and improve budgeting.

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2016 ANNUAL REPORT

ClarientTM launched several new services in 2016 as client adoption surpassed 200 on the platform, which automates and centralizes client entity data and documents. The new Base Relationship Service enables banks, broker-dealers and institutional clients to maintain and exchange the legal entity data and documentation necessary to transact. In addition, the Public KYC (PKYC) Service was enhanced with 130,000+ validated KYC records – and the new PKYC Premium service went live.

Adoption of the Avox Managed Data Service continued to expand, taking the total managed record population to over 2 million unique entities. Real-time delivery of entity data through API, offering firms operational efficiencies, has been a major driver. Further Avox integration into Clarient Entity Hub last year enabled accelerated record creation for Clarient Public KYC clients.

Note: Thomson Reuters purchased Clarient and Avox from DTCC in March 2017.

VClarient: Named “Best Reference Data Newcomer” by Inside Reference Data and recognized as the “2016 Information Security Executive (ISE) Northeast Project Award” winner for outstanding achievements in risk management, data asset protection and network security.

Avox: Recognized as the Best Entity Management solution at the Data Management Review awards in London for the second consecutive year.

DTCC enhanced its data offerings in 2016, building out its suite of services to cover major asset classes, including equities, derivatives and fixed income. The new Liquidity Coverage Ratio Data Service helps firms manage their requirements for liquidity facilities and support commercial paper obligations in order to meet Basel III and other regulatory mandates. Another new product, Equity Data Service, facilitates performance analysis of U.S. equity trading, giving clients metrics to support better business decisions. Additional products that provide firms with access to a consolidated view of their own trading activities as well as aggregated and anonymized market data sourced from DTCC’s processing and data engines are expected to launch in 2017.

INNOVATION

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2016 ANNUAL REPORT

DTCC embraced the fintech revolution in 2016, earning global recognition for our work to integrate distributed ledger technology into the post-trade infrastructure. Our white paper Embracing Disruption emerged as an authoritative source of information while the Blockchain Symposium we hosted in New York brought together more than 500 industry leaders and policymakers to debate potential applications of the technology. In addition, we made a financial investment in Digital Asset Holdings, a blockchain company, and are a premier founding member of the Hyperledger Project, which has positioned us to help shape the future of the technology.

DTCC emerged as a leader in advancing the use of distributed ledger technology (DLT) with our announcement to replatform our Trade Information Warehouse (TIW) for credit derivatives – one of the first and largest blockchain initiatives to date based on industry scale. The project is expected to streamline, automate and reduce the cost of derivatives processing across the industry and follows a successful proof-of-concept for North American single name Credit Default Swaps (CDS) that we completed in 2016. The new solution is expected to go live in early 2018. The TIW automates the record keeping, life cycle events, and payment management for more than $11 trillion of cleared and bilateral credit derivatives.

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2016 ANNUAL REPORT

DTCC led a working group of more than 60 firms last year to develop Insurance Profile – a new solution that will enable clients to comply with disclosure mandates under the U.S. Department of Labor’s Fiduciary Rule. The service will provide carriers and distributors a centralized, automated repository to populate, retrieve and distribute fee, expense and commission schedule data at the product level. This will help streamline reporting and investor disclosures. Insurance Profile is expected to launch in April 2017. We also plan to introduce DOL-related enhancements to help support WMS’ Mutual Fund Services and Alternative Investment Product Services clients in 2017.

As populism swept across much of Europe and the U.S. in 2016, it produced unexpected results in the Brexit vote and the U.S. presidential election – producing market volatility that rivaled some of the most significant systemic events of the past decade. DTCC processed this spike in volume without incident due, in large part, to months of planning and preparation and by drawing on our deep experience managing market stress over the past four decades. In the wake of these elections, we continued to engage with policymakers and regulators globally, sharing insights on market stability and transparency to help shape legislative and regulatory policies at the global, national and regional levels.

DTCC continued to execute its multi-year Interconnectedness Risk initiative, which seeks to identify, monitor, and quantify the firm’s multiple interconnections across the global financial system. The goal of this effort is to build greater organizational resilience to protect against more frequent and unexpected systemic shocks. As part of this work, we also extended our stakeholder outreach to raise awareness of leading trends in systemic risk management. For example, our bond market liquidity discussion paper,

ENGAGEMENT:

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2016 ANNUAL REPORT

issued in November, used DTCC data to highlight potential risks facing the industry while our Systemic Risk Barometer survey, published in November, revealed that the threat of cyberattack remains the top concern of global risk managers. We shared this and other key market insights with policymakers in the U.S., Europe and Asia as part of our robust engagement strategy to foster market stability, promote increased transparency and build stronger relationships.

With cyber-attacks against the financial sector increasing, DTCC continued to rally support for building industry-wide resilience and expanding public-private partnerships last year. DTCC President and CEO Michael Bodson joined Treasury Secretary Jacob J. Lew and other Obama Administration officials, regulators and banking executives in Washington D.C. in 2016 to discuss a wide range of topics, including procedures for collaboration around cyber security incident response efforts and the growing number of new cyber regulations. During the meeting, Bodson reinforced the importance of regulatory coordination and cooperation and the benefits of a principles-based approach to rulemaking that enables firms to focus their full energies on building resilience and protecting against future attacks.

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2016 ANNUAL REPORT

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