DTC: Sitting at the Commercial Paper Issuers Table

Commercial paper is among the most liquid and ubiquitous types of securities and plays a vital role in the U.S. economy. Commercial paper (CP) is an essential source of short-term financing for institutional issuers. Every day major U.S. corporations raise tens of billions of dollars in short-term CP. The Depository Trust Company (DTC) has been settling U.S. commercial paper transactions since 1990. CP trades are processed through the DTC settlement system employing comprehensive risk management controls and procedures specially designed for money-market instruments. The 2008 financial crisis has reshaped the CP market and intensified market participants' focus on risk management. DTC, as the sole entity clearing and settling CP transactions in the U.S., has been a source of operational stability and market knowledge through this period of change. Given the company's central role in the CP market, it's not surprising that DTCC was a founding member in 1996 of the Commercial Paper Issuers Working Group (CPIWG), an industry group that meets regularly to discuss economic trends, market practices, trading rules and other concerns. The CPIWG provides a forum for open communication and information-sharing among major CP issuers and other key players in this market. The CPIWG now comprises 45 members, including 30 issuers, five Issuing and Paying Agent banks (IPAs) and eight vendorsamong them Bloomberg LLP, which provides trading platforms for the commercial paper market, and Crane Data, a provider of market analytics. DTCC is one of two CPIWG members at large; the Federal Reserve Bank is the other. Because the commercial paper market is largely self-regulated, the working group fills a need for the larger corporate issuers in particular, by giving them a voice in the development of systems and processes that help this market mitigate risk and operate smoothly. The purpose of the group is to get people together to discuss industry situations and evaluate market conditions. Members get to hear diverse viewpoints on developments in the industry, which helps them better understand what's happening in the market. As at an at-large member, DTC works closely with fellow CPIWG members to help mitigate risks associated with commercial paper transactions and in partnership with regulators to maintain the safety and soundness of the CP market.

An Overview

For more than 35 years, DTCC's family of companies has helped automate, centralize, standardize and streamline processes that are critical to the safety and soundness of the capital markets.
DTCC, through its subsidiaries, provides clearing, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$36.5 trillion. In 2010, DTCC settled nearly US$1.66 quadrillion in securities transactions. DTCC operates through 10 subsidiaries - each of which serves a specific segment and risk profile within the securities industry:

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National Securities Clearing Corporation (NSCC) The Depository Trust Company (DTC) Fixed Income Clearing Corporation (FICC) DTCC Deriv/SERV LLC The Warehouse Trust Company LLC DTCC Derivatives Repository Ltd. DTCC Solutions LLC DTCC Loan/SERV LLC EuroCCP Ltd. Avox Ltd. DTCC's joint venture company with Thomson Reuters, Omgeo, has over 6,000 customers in 45 countries and plays a critical role in institutional post-trade processing, acting as a central information management and processing hub for brokers, investment managers and custodian banks. DTCC's joint company with Markit, MarkitSERV, combines the DTCC Deriv/SERV and Markit Wire trade confirmation platforms to cover all major asset classes including credit, interest rate, equity and commodity derivatives. New York Portfolio Clearing, LLC (NYPC) is registered as a U.S. Derivatives Clearing Organization with the Commodity Futures Trading Commission. A joint venture of NYSE Euronext and The Depository Trust & Clearing Corporation, NYPC clears interest rate products and supports the cross-margining of fixed income cash products from DTCC's Fixed Income Clearing Corporation with their related, offsetting derivatives trades in a "single pot". For more information, please visit: www.nypclear.com. Our Mission, Vision and Values

Mission We protect our clients and financial markets and systems as a whole. We leverage our scale and expertise to perfect a more robust, unified infrastructure and promote solutions that systematically reduce risks, amplify operating efficiency and minimize cost. Vision We are unwavering in our commitment to drive out risks and costs. To achieve this, we partner with clients to bring stability to the global financial markets and create efficiencies for an ever-expanding industry. Values DTCC's core values are the foundation upon which our mission and purpose are built. These values are:

Integrity and Trust Quality and Excellence Customer Focus Employee Focus and Respect Innovation Teamwork