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OUR EXPERTISE. YOUR ORGANIZATION.
LET THE POST-TRADE EXPERTS HELPYOU TRANSFORM YOUR REPORTING
CONTROL FRAMEWORKThe Challenge

Combined with the abundance of rules already on the books – from Dodd-Frank to
SFTR – the array of changing trade reporting regulations are straining firms’ operations
to a heightened degree. Increased regulatory scrutiny, greater focus on accuracy anddata quality, and readiness for upcoming rules changes are all clear and present pain
points for firms today. And when a firm’s infrastructure and related control framework isalready a patchwork of functionalities from a decade of adapting to the regulatory
evolution, firms face mounting pressures.

Did you know?

Since 2017, the Financial Conduct Authority (FCA) has fined firms nearly £100 million for failure to comply with Markets in
Financial Instruments Directive (MiFID) and European Markets Infrastructure Regulation (EMIR) rules. Since 2019, theCommodity Futures Trading Commission (CFTC) has fined firms nearly $20 million for similar breaches in CFTC reporting.*
Many of these breaches were exacerbated by a lack of a clear control framework and governance around remediation items.
Effective control frameworks may not only mitigate the threat of fines but can also help avoid some of the time-consuming
and costly activities associated with examinations, attestation, remediation, and ongoing supervision by establishing aconstruct that focuses on early-identification and prevention.

*Data derived from the FCA and CFTC websites.

The Solution

With the help of our post-trade experts, we can help you address thesechallenges and help you get ready for the swathe of regulatory changes
taking effect over the next few years.

DTCC Consulting Services experts leverage our proprietary Reporting
Control Framework Model to conduct a deep dive diagnosis andpropose an implementation plan to enable firms to enhance theirreporting processes with the aim to help increase operational
efficiencies, drive down costs, and mitigate risks.

ReportingControlFramework
Model & Library

The DTCC Consulting Services Reporting Control Framework Model helps
clients evaluate gaps and implement improvements within theirorganizations.
›Access a library of 60+ control assessments and best practices
which can be applied to all major derivatives reporting jurisdictions.

›Each observation has been categorized for thematic analysis andincludes criteria developed by a broad panel of experts within DTCC.

GOVERNANCE &QUALITY ASSURANCE

CORE REPORTING PROCESSESPRODUCEDATA

MODEL ROUTE &STORE EVENTSWORKFLOW, EXCEPTIONMGMT & RECONCILIATIONPROCESS &SUBMIT EVENTSRECEIVEREPORTSMANAGEMENT INFORMATION& ANALYTICS

The
ReportingControl
Framework
Outcomes

THE REPORTING CONTROLFRAMEWORK MODEL PROVIDES
BEST-IN-CLASS EXAMPLES OFFUNCTIONALITY SO FIRMS CANIDENTIFY CRITICAL AREAS OF
IMPROVEMENT.

REPORTING CONTROLFRAMEWORK OUTCOMESIDENTIFY GAPS & INEFFICIENCIES
Understand the current state of yourprocesses (process maturity acrossjurisdictions) and prioritize areas forimmediate focus.

GAIN GREATER AUTOMATION,REPEATABILITY & SCALABILTY

Discover how more mature processes will
result in higher levels of automation,
independence, ongoing repeatability, andfuture scalability across a comprehensive
set of use-cases.

IMPLEMENT THE CONTROLFRAMEWORK YOUR FIRM NEEDSDTCC helped us quickly
assess our control gapsand provided expert
practical advice on how toaddress them.

Corroborate if controls exist and if they are
fit for purpose given your organization’srisk profile, trade volumes, andconsidering the changes to be adopted bythe upcoming rewrites.

BE INFORMED AND EMPOWEREDInform and empower your decisionmaking by providing justified
recommendations based on our deep
expertise and experience.

- TOP TIER INVESTMENT BANKACCESS INDUSTRY INSIGHTS

Gain access to peer insights, vendor
opportunities and industry
benchmarks to aid with the planningof regulatory rewrites and theremediation book of work.

ExampleEngagements

We assist clients with diagnostic assessments
and reporting control framework enhancement
and implementation.

CLIENT NEEDDTCC CONSULTING SERVICES

Identification of control weaknesses
and peer benchmarking

Reporting control framework diagnostic›

Review of defined solutions and enhancement of controls
to mitigate known control gaps

Addressing existing reporting issues in preparation forupcoming regulatory changes

Tools to enhance and/or automate specific reporting
controls or processes

Compare versus control framework target state, control
inventories and maturity assessment. Identify pain
points leveraging on industry knowledge, perspectives,
DTCC GTR data and peer comparisons.

Reporting solution review and remediation support›

Provide independent validation and enhancement ofproposed solution design.

› esign and implement specific controls, leveraging
D
DTCC and industry expertise.

Combined target state and gap analysis›

Holistic view of global processes and controls
considering regulatory reporting harmonization.

›Conduct an analysis of client’s regulatory reporting
solution, controls and data quality against theregulatory requirement to proactively address issues in
preparation for the upcoming rewritesAssessment of tools to address control enhancements›

 nalysis and benchmarking of vendor solutions to supportAelements of control framework and reporting process.

As the world’s leading expert in post-trade processing, DTCC is uniquely positioned to provide you with consulting services that tap into the breadth and depthof our experience to help you transform your post-trade business operations, increase efficiencies, reduce risks and drive down costs. For over 45 years, ourclients have trusted us to solve the biggest issues facing the global financial services industry. This unique vantage point has enabled us to develop techniques
and tools that can help drive innovation and transformation. DTCC Consulting Services offers a framework that not only is adaptable to a variety of projectenvironments, but centers on capabilities that deliver value to our clients.
This material contains general information only, and none of The Depository Trust & Clearing Corporation (DTCC) network of firms is, by means of thiscommunication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you
should consult a qualified professional adviser. No entity in the DTCC network shall be responsible for any loss whatsoever sustained by any person who relieson this communication.

VISIT WWW.DTCC.COM/CONSULTING© 2023 DTCC. All rights reserved. DTCC and DTCC (Stylized) are registered and unregistered trademarks of The Depository
Trust & Clearing Corporation.

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The services described herein are provided under the “DTCC” brand name by DTCC Solutions (UK) Ltd, an affiliate of The
Depository Trust & Clearing Corporation (“DTCC”). DTCC itself does not provide such services. Each of these affiliates is aseparate legal entity, subject to the laws and regulations of the particular country or countries in which such entity operates.
Please visit www.dtcc.com for more information on DTCC, its affiliates, and the services they offer.

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This material is provided for informational purposes only and should not be relied on for any other reason. The service shallbe governed by specific terms and conditions applicable to the service. None of DTCC, its member firms, or its relatedentities (collectively, the “DTCC Network”) is, by means of this material, rendering professional advice or services. No entity
in the DTCC Network shall be responsible for any loss whatsoever sustained by any person who relies on this material.
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