Participants have requested that NSCC simplify the ACATS PC Web Direct data entry screens for Fail Reversals because certain fields that currently indicate being a required field are really conditional (only required under certain circumstances) and other fields (such as Option Information fields) are not applicable to these ACATS transactions. Since the new ACATS Mutual Fund Cleanup transaction is very similar to Fail Reversal transaction, screens changes were made to both the existing ACATS Fail Reversals and the new Mutual Fund Cleanup PC Web Direct data entry screens.

This section will describe the changes made to the ACATS PC Web Direct data entry screens that affect Fail Reversals. Currently there are four sections to the ACATS Fail Reversal PC Web Direct data entry screen. The following are the four sections and the details of the changes made (refer to attachment A for an example of the modified ACATS Fail Reversal Data entry screen):

Transfer Information Section - Not applicable. There are no changes to this section.

Asset Information Section - The following are the changes to the asset information section:

• Settling Location - currently a required field that allows participants to select, from a drop down box, all of the applicable ACATS settling locations (e.g. 00 - System Generated, etc.). This field will remain a required field but will be locked, no other value allowed, at the applicable settling location of 50 R & D for an ACATS Fail Reversal. The settling location for an ACATS Fail Reversal is always 50 R & D.

• Option Category - currently a required field that allows participants to select, from a drop down box, all of the applicable option types (e.g. 00 - Non Option, 01 - Equity Option, etc.). This field will remain a required field but will be locked, no other value allowed, at 00 - Non Option for ACATS Fail Reversals.

• Bearer Bond - currently a conditional field that allows participants to select, from a drop down box, two values, B - Bearer Bond and N Not Bearer Bond. This field will remain a conditional field but will be locked, no other value allowed, at N - Not Bearer Bond for ACATS Fail Reversals.

• Settling Reason – This field is currently a conditional field that allows participants to select, from a drop down box, all of the applicable settling reasons (e.g. CRED - Credit Balance, USEC - Underlying Security, etc.). This field will remain conditional but will be locked, no other value allowed, at XSET - Outside CNS, DTC, Fund/SERV, GSCC, PTC for ACATS Fail Reversals.

• Position Code - currently a required field that allows the participants to select, from a drop down box, three values, S- Short Position, L - Long Position and N- Not Applicable and currently always displays the S - Short Position value. This field will remain a required field and the participant can select the same three values, but the field will be changed to always display L - Long Position for ACATS Fail Reversal.

• When Issued - currently a conditional field that allows participants to select, from a drop down box, two values, W - When Issued and N - Not When Issued. This field will remain conditional but will be locked, no other values allowed, at N - Not When Issued for ACATS Fail Reversal.

Mutual Fund Information Section - Currently, this section has all of the fields indicated as required fields for ACATS Fail Reversal. There are also two fields that are currently optional in the Mutual Fund Information section. These two optional fields are CDSC Indicator and Firm Membership Indicator Deliverer. The change in the Mutual Fund Information section will be to change all of the required fields to optional fields for ACATS Fail Reversals. The two optional fields, CDSC Indicator and Firm Membership Indicator Deliverer will remain optional.

This section will describe the new PC Web Direct data entry screen created for the ACATS Mutual Fund Cleanup transaction. There will be three sections: Transfer, Asset and Mutual Fund Information sections. The three sections and the description of the unique details of the Mutual Fund Cleanup PC Web Direct data entry screens are as follows, (refer to attachment B for an example of the new ACATS Mutual Fund Cleanup data entry screen):

Transfer Information Section - Not applicable. This section is exactly like the ACATS Fail Reversal section and was not modified for the new ACATS Mutual Fund Cleanup section.

Asset Information Section - The following are the unique details for the Mutual Fund Cleanup PC Web Direct data entry screens:

• Settling Location - This field will be a required field but will be locked, no other value allowed, at the applicable settling location of 00 - System Generated for ACATS Mutual Fund Cleanup. The settling location for ACATS Mutual Fund Cleanups will always be 50 R & D on all of the applicable ACATS output.

• Option Category - This field will be a required field but will be locked, no other value allowed, at 00 - Non Option for an ACATS Mutual Fund Cleanups.

• Bearer Bond - This field will be a conditional field but will be locked, no other value allowed, at N - Not Bearer Bond for ACATS Mutual Fund Cleanups.

• Settling Reason - This field will be conditional but will be locked, no value allowed, at spaces for ACATS Mutual Fund Cleanup. Mutual Fund Cleanups will always be XSET - Outside CNS, DTC, Fund/SERV, GSCC, PTC for settling reason on all of the applicable ACATS output.

• Pricing Category - This field will be required but will allow a participant to select only two pricing categories of MFMM - Mutual Fund Money Market and MFNM - Mutual Fund Non-Money Market for ACATS Mutual Fund Cleanup.

• Transfer Reason - This field will not be applicable to ACATS Mutual Fund Cleanup and participants will not be allowed to enter this field.

• When Issued - This field will be conditional but will be locked, no other value allowed, at N - Not When Issued for ACATS Mutual Fund Cleanup.

Mutual Fund Information Section – The only required field, which has been added to the Mutual Fund Information section for Mutual Fund Cleanup, is "New Fund Customer Account Number Receiver" and represents the new Customer Account number at the fund. All of the remaining fields will be optional fields for the new ACATS Mutual Fund Cleanup.

Option Information Section - There will be no Option Information section in the new Mutual Fund Cleanup PC Web Direct data entry screen. This section is not applicable because Option assets are not allowed for ACATS Mutual Fund Cleanups.