As part of the regular processing of trades settling in the NSCC Continuous Net Settlement System (CNS) Participants receive various reports available in both print image and MRO formats. Among these reports are the CNS Projection Report, CNS Reorg Information Report and the CNS Potential Liability Report. One of the features of these reports is to inform Participants of any potential eligibility and/or liability with regard to Voluntary Corporate Actions being processed within the CNS environment.

In an effort to be of assistance to Participants, NSCC Operations has in addition to providing the above reports, made courtesy phone calls to Participants to remind them of an expiring voluntary Corporate Action that is being processed in the CNS environment. These calls have usually been made to both Long and Short Participants on expiration date +2 (E+2). While Participant reaction to these calls has been mostly positive, indications are that this process provides minimal added value to Participants given the vast array of Corporate Action Data services currently available.

As part of our ongoing efforts to maintain low costs to Participants and to eliminate duplicative efforts effective September 1, 2001, it has been determined that NSCC will discontinue providing the regular phone notifications to Participants relating to CNS eligible Voluntary Corporate Actions.

In the future, Participants should refer to the CNS Reorg Information report (AutoRoute #02042251) and Potential Liability Report (AutoRoute #02042253) for information pertaining to CNS eligible Corporate Actions. The CNS Projection Report (AutoRoute #02042022) and Accounting Summary (AutoRoute #02042024) should be used to determine potential positions eligible for inclusion in the CNS Corporate Action system. All files are being received via a direct transmission or via P.C.Web Direct.

Questions regarding this notice can be directed your DTCC Relationship Manager.