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Important Notice The Depository Trust Company

B #: 13007-20

Date: March 4, 2020

To: All Clients

Category: Settlement

From: DTC Settlement Product Management

Attention: DTC Settlement Manager / Managing Director / Cashier

Subject: New Functionality in the Settlement Web - SLRM

As mentioned in prior Important Notices, DTC continues to migrate settlement functionality from the

Participant Browser Service (PBS) and Participant Terminal System (PTS) into the Settlement Web. As

such, DTC is pleased to announce the next capability to be migrated into the Settlement Web. Effective

March 6th, 2020, DTC’s legacy Stock Loan and Repo Maintenance (SLRM) function will be available in

DTC’s Settlement Web.

Functionality

DTC provides its clients with the ability to perform income tracking on many transaction types, including

stock loans and repos. As mentioned above, DTC is making this functionality available to clients in the

Settlement Web. With this implementation, clients will receive enhanced processing that doesn’t currently

exist in PTS and PBS. This includes:

• Secondary Transaction Approval: Clients can set a profile that will route all newly submitted Stock

Loan and Repo adjustments1 for Secondary Approval using DTC’s Secondary Transaction Approval

function.

• Transaction File Uploads: Clients can now leverage DTC’s Transaction File Upload capabilities to

process bulk uploads of Stock Loan Repo Adjustment as well as Approvals.

Screenshots for much of this functionality can be found in Appendix 1.

Retirement

Please note that the SLRM functionality will be offered in parallel to the comparable PTS/PBS functionality

until a retirement date is published in a future DTC Important Notice. Full functionality will be outlined in

the help guide published to the Settlement Web.

Access

User access to the Settlement Web continues to be managed through the Customer Registration System

(CRS), and provisioned by a Settlement Web Access Coordinator. Basic inquiry access into this functionality

is controlled by the ‘Inquiry’ layer of permission, which is included in each of the eight Settlement Web

Core Roles (See Appendix 2 for the complete matrix of roles). Submission of an adjustment will require a

1 Note that this applies only to submission of adjustments, and not counterparty approval. Additionally, any transactions

submitted in PTS and/or PBS will not be subject to secondary approval.

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user to have the Transaction Update layer of permission assigned to their Settlement Web ID, which is

included in Core Roles 2, 5, 6 and 8. For a counterparty to approve an adjustment, the user needs the

Approval layer of permission, which is found in Core Roles 3, 6, 7 and 8.

Please note that if users do not require access to this functionality, no action is required.

Questions regarding this Important Notice should be directed to your relationship manager.

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Appendix 1

Submitting Stock Loan / Repo Adjustments Clients may enter memo adjustments to the income-tracking portion of a stock loan or repurchase agreement.

To Submit Stock Loan / REPO Adjustments:

1. From the Transaction Submission menu, select Stock Loan / Repo Adjustments.

2. Your firm’s ID is displayed by default as the Originating Participant Id. Multi-account users must select an

individual ID.

3. Click either the Stock Loan or Repo radio button to indicate the adjustment type.

4. Enter the ID for the Contra Participant.

5. Enter a valid CUSIP. This value must contain nine alphanumeric characters.

6. Enter a Quantity for the adjustment.

7. Indicate if this is a debit or credit by clicking the ‘+’ Increase or ‘−’ Decrease radio button.

8. Optionally enter a Comment.

9. To enter additional adjustments, click the Add Row button.

Tip: Bulk upload of stock loan / REPO adjustments, approvals, and cancellations using a spreadsheet is available.

10. Click Submit.

After submitting an adjustment, your contra party can approve or reject it.

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Approving, and Cancelling Stock Loan / REPO Adjustments Clients may approve and cancel stock loan / REPO adjustments entered by the originating participant.

To Approve or Cancel Adjustments:

1. From the Activity menu, select Stock Loan / Repo Adjustments.

2. Enter the Participant ID relating to your search.

3. Select the Contra radio button.

4. Select the “Unapproved” radio button

5. To narrow your results, optionally enter a CUSIP.

6. Click Search to display your results in the Participant Details action grid.

7. Select the adjustments to be either approved or cancelled by clicking their check boxes.

8. The Comment field becomes editable after clicking the check box next to an entry. Optionally, enter a

comment of up to 25 characters. Note: Contras must enter a comment to cancel an adjustment.

9. The actions that may be taken differ based on your search:

a. To approve the selected adjustments, click Approve Adjustment.

b. To cancel the selected adjustments, click Cancel Adjustment.

10. A confirmation message is display. Click Yes to complete the approval or cancellation.

11. The results are responsive to your entry.

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• A green check mark appears next to adjustments that have been successfully approved or cancelled.

• A red icon appears next to adjustments requiring corrections. Hover your mouse over the icon to see

the reason for the error.

Tip: To perform bulk uploads of submissions, approvals, and cancellations, consider using the upload template.

For more information on Transaction File Uploads and Secondary Transaction Approval, please click

on the “Help” button in the Nav Bar to find detail descriptions of each.

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Appendix 2

Sensitive Functions Additional roles have been created to govern access to sensitive or specific functionality in the Settlement Web. The roles are outlined below:

ROLE DESCRIPTION

SENSITIVE FUNCTION 1 - Collateral

Group Privileges (Add-on to any of the

above core roles)

Add Collateral Group privileges to the Core Roles.

SENSITIVE FUNCTION 2 - Deliver Order

Input (Add-on to any of the above core

roles)

This add-on to the Core Roles will allow a user to

submit Deliver Orders via screen or upload in the

Settlement Web.

SENSITIVE FUNCTION 3 - Payment Order

Input (Add-on to any of the above core

roles)

This add-on to the Core Roles will allow a user to

submit Security Payment Orders (SPOs) or Premium

Payment Orders (PPOs) via screen or upload in the

Settlement Web.

Inquiry Provides inquiry access to all functions within the Settlement Web

Transaction Update

Transaction update refers to taking an action on an existing instruction. Common examples include: submitting an SLRM adjustment, canceling a pending delivery, holding and releasing a pending delivery, canceling or approving a transaction in RAD, or reclaiming a receive.

Approval Provides the ability to approve transactions that are subject to secondary approval and applicable profile creations and modifications. Examples include approving and SLRM adjustment or a RAD limit profile creation/update.

Profile Management

Provides the ability to create or modify settlement related profiles. An example is creating a bilateral RAD limit profile.

Core Roles There are 4 primary types of access within the Settlement Web:

Inquiry, Transaction Update, Approval and Profile management. Each

of these affords different levels of functionality. DTC recognizes that

clients have different governance policies regarding user types and

levels of access. To provide clients with each possible combination of

access, we’ve created 8 Core Roles. CRS Access Coordinators should

assign a Single Core Role for each user based on the appropriate level

or access.

Core Role #1: Inquiry Only Access

Core Role #2: Inquiry plus Transaction Update

Core Role #3: Inquiry plus Approval

Core Role #4: Inquiry plus Profile Management

Core Role #5: Inquiry plus Transaction Update plus Profile Management

Core Role # 6: Inquiry plus Approval plus Transaction Update

Core Role #7: Inquiry plus Profile Management plus Approval

Core Role #8: Inquiry plus Transaction Update plus Approval plus Profile Management

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SENSITIVE FUNCTION 4 -

Segregation/Release of Segregation Input

(Add-on to any of the above core roles)

This add-on to the Core Roles will allow a user to

move securities to and from their general free account

to their segregation account via screen or upload in the

Settlement Web.

SENSITIVE FUNCTION 5 - Memo

Segregation Input (Add-on to any of the

above core roles)

This add-on to the Core Roles will allow a user to add,

delete or overlay their memo segregation counter via

screen or upload in the Settlement Web.

SENSITIVE FUNCTION 6 - Investment

ID/Release of Investment ID Input (Add-on

to any of the above core roles)

This add-on to the Core Roles will allow a user to

move securities to and from their general free account

to their Investment ID account via screen or upload in

the Settlement Web.

SENSITIVE FUNCTION 7 - MA/NA

Collateral Movement Input (Add-on to any

of the above core roles)

This add-on to the Core Roles will allow a user to

move securities between the collateral designations

Minimum Amount (MA) and Net Additions (NA) via

screen or upload in the Settlement Web.

SENSITIVE FUNCTION 8 – IPA Inquiry

Privileges (Add-on to any of the above core

roles)

This add-on to the Core Roles will allow IPA users to

inquire on Money Market activity.

SENSITIVE FUNCTION 9 - Pledge /

Release Request Input (Add-on to any of the

above core roles)

This add-on to the Core Roles will allow a user to

pledge and request release returns via screen or upload

in the Settlement Web.

SENSITIVE FUNCTION 10 – Legal Entity

Inquiry Privileges (Add-on to any of the

above core roles)

This add-on to the Core Roles will allow a user to see

Settlement balances on a legal entity level

SENSITIVE FUNCTION 11 – Direct

Registration Client Details (Add-on to any of

the above core roles)

This add-on to the Core Roles will allow a user to see

DRS client information the Activity Inquiry screen

Bank Functions Additional roles have been created to govern access to pledgee and settling bank functionality in the Settlement Web. The roles are outlined below:

Pledgee Bank Inquiry Only Access This role will allow pledgee bank users to inquire on

pledgee activity.

Pledgee Bank Inquiry and Update Access This role will allow pledgee bank users to inquire on

pledgee activity and perform updates, e.g., release

request approvals and returns.

Settling Bank Inquiry This role will allow DTC and/or NSCC settling banks

to inquire on intraday and historical settlement

balances.

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Settling Bank Inquiry PLUS Approval This role will allow DTC and/or NSCC settling banks

to inquire on intraday and historical settlement

balances, as well as acknowledge settlement and/or

refuse to settle for a legal entity.

Affiliated Bank AIP Statement Inquiry This role will allow AIP settling banks to inquire on

intraday and historical settlement balances.

Affiliated Bank AIP Statement Inquiry

PLUS Approval

This role will allow AIP settling banks to inquire on

intraday and historical settlement balances, as well as

acknowledge settlement and/or refuse to settle for a

legal entity.

Affiliated Bank GSD Statement Inquiry This role will allow GSD settling banks to inquire on

intraday and historical settlement balances.

Affiliated Bank GSD Statement Inquiry

PLUS Approval

This role will allow GSD settling banks to inquire on

intraday and historical settlement balances, as well as

acknowledge settlement and/or refuse to settle for a

legal entity.

Affiliated Bank MBSD Statement Inquiry This role will allow MBSD settling banks to inquire

on intraday and historical settlement balances.

Affiliated Bank MBSD Statement Inquiry

PLUS Approval

This role will allow MBSD settling banks to inquire

on intraday and historical settlement balances, as well

as acknowledge settlement and/or refuse to settle for a

legal entity.

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