National Instrument 24-101Opportunities and Challenges

Buy-Side Firms

Heidi JohnstonVice-President, Trade Administration & Fund Accounting

Phillips, Hager & North Investment Management Ltd.

2

Key Components

Focus on policies and procedures Written acknowledgement of capabilities

Trade matching statement/agreement Phased implementation

Transitional performance targets Performance measurement

Exception reporting Analysis and plans

Mutual Dependency among trade-related parties

3

Policies and Procedures

Accelerate processing from T+1 to T

Determine delays in processing

Enhanced electronic transmission

4

Acknowledgement

Written acknowledgement

Trade matching statement

Alternatively a trade matching agreement

5

Transitional Targets

The key to accelerating trade matching is accelerating the transmission of trade allocation information

Acceleration of trade detail allocations to the custodian and broker involves:

Data availability and integrity Frequency and timing of trade transmission Late day systems, operations and information

availability

6

Performance Measurement

Trade-matching performance measurement Data sources Accuracy Consistency

Development of new reporting

Analysis of results

7

Mutual Dependency

Required by all trade-related parties Broker/Dealers Custodians Investment Managers

Standard Data Elements

8

Next Steps

Assess daily internal processes for trade transmission (front & back office)

Review current timelines Evaluate the level of automation required Analyze current applications in place

Collaborate with other trade-related parties Identify potential changes Data availability

Access options available Develop and implement plans

National Instrument 24-101Solutions and Remaining Challenges Faced by

Buy-Side Firms

Heidi JohnstonVice-President, Trade Administration & Fund Accounting

Phillips, Hager & North Investment Management Ltd.