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Operational Support from Pershing Adds Depth and Expertise to Your Trades

Issue 1 May 2007

Operational capabilities are designed to help you—before, during, and after the transaction. Our traders provide the best execution possible for your orders, while our knowledge and systems help you navigate a challenging regulatory environment.

Clearing and Execution Services
Pershing’s hallmark is superior execution quality for both agency and proprietary trading. We use internal and external resources, as well as third-party benchmarks, to define execution quality standards. The findings demonstrate that Pershing excels in execution performance.

Equities processing - Our Equities Market Making Desk makes markets in over 200 NYSE^® and AMEX^® listed stocks, 1,000 NASDAQ^® listed stocks, and over 5,000 combined Bulletin Board and Pink Sheet stocks. Our electronic market-making capabilities can provide you with additional liquidity and increased speed of execution, whether you have retail or institutionalsized order flow.
Fixed income processing - Pershing’s Fixed Income Trading and Sales Desk provides market-making and sales expertise, as well as a comprehensive array of domestic and foreign products. We are a market maker and provider of sales expertise in a wide variety of fixed income products and services, including corporate bonds, Eurodollar bonds, U.S. government bonds, mortgage-backs, municipal bonds, preferred stocks, unit investment trusts, and money market instruments. Through BondCentral® and our fixed income sales specialist team, we provide inventory tailored to meet your clients’ needs and fixed income offerings designed to help you achieve your trading and investment goals.
Options - One of the largest providers of execution and clearance for options, Pershing’s market presence gives you a unique advantage. Our trading desk and exemplary customer service professionals can provide the value-added service you need to remain competitive.
Mutual funds - Pershing offers access to more than 14,000 mutual funds, representing more than 450 mutual fund companies. We currently have more than $230 billion in mutual fund assets under custody, and process an average of 40,000 mutual fund trades each day. Use our FundVest^® service to buy, sell, or exchange more than 1,800 load and no-load mutual funds, managed by more than 160 highly-regarded fund companies—from one convenient location, without incurring normal transaction fees.
On a recent “record” trading day, the Pershing mutual fund area processed more than 113,000 buys, more than 117,000 sells, and more than 2,400 exchanges overall. This made for a one-day overall total in excess of 233,000 transactions, representing a net value of more than $85 billion. On that same record trading day, we processed more than 44,000 buys, more than 58,000 sells, and more than 300 exchanges in our FundVest® program—for a total of more than 103,000 transactions with a net value of nearly $21 billion.
Fixed and variable annuities - Subscribe^®—our annuity program—enables you to streamline how you process, service, and maintain fixed and variable annuities. Subscribe supports annuity-order-entry capabilities for an “application-free” process, and is accessible via NetExchange Pro^® through the annuity trading function. Subscribe also gives you the ability to consolidate annuity assets that have traditionally been viewed separately from your clients’ brokerage account assets. Subscribe has nine transaction-eligible carriers and 33 network eligible carriers. Additionally, Subscribe supports Commission Processing through the Depository Trust & Clearing Corporation’s (DTCC ’s) Insurance Processing Service, along with settlement-increasing efficiencies to allow you to receive payouts faster.
Multicurrency processing - We offer an automated foreign exchange service that converts more than 40 foreign currencies into U.S. dollars, and vice versa—letting your clients send and receive funds and finance global securities transactions in their brokerage accounts.
Money market funds and Federal Deposit Insurance Corporation (FDIC)-insured bank deposit sweep programs - Staffed by nine dedicated associates, Pershing’s Money Fund Choice Program offers you the ability to sweep your clients’ balances into their choice of 125 money market funds and an FDIC-insured bank deposit program, offered by seven different fund management companies. Funds in the program offer a broad range of share classes and portfolio strategy choices, including taxable, tax-free, government, and Treasury. Pershing’s automated processing systems handle close to six million sweep transactions each month, representing over $56 billion in purchase and redemption activity.

Statement Processing
Pershing knows how important it is to communicate effectively with your clients and recognizes the key role that brokerage account statements play in that regard. Our 2006 brokerage account statement was rated “Excellent” by DALBAR, a market research firm that evaluates and promotes higher standards for investor statements. The statement’s “Excellent” rating is based on clarity of content as well as “desirable features,” such as the flexibility to customize statements and the sequence and consistency of data. Based on the current criteria, our brokerage account statement has been recognized as one of the top three investor statements in the last three years by DALBAR and was the first to receive the designation of “Excellent” in 2004.

Pershing also understands how important timely performance reporting can be to keep clients on the books for the long term. That is why you can now make Quarterly Performance Reports (QPRs) available to your clients via Portfolio Evaluation System^® (PES®).

"Pershing's hallmark is superior execution quality for both agency and proprietary trading."

This provides a quick, convenient way to view and distribute QPRs, hard copies of which are printed and mailed to your clients through Pershing. PDFs of these documents are available on e-Document SuiteTM through NetExchange Pro. e-Document Suite also allows you to access electronic copies of your clients’ brokerage account statements, trade confirmations, and tax information statements, accessible through NetExchange Pro.

SelectLink^® offers maximized convenience by consolidating linked or householded brokerage accounts into an easy-to-read summary. This complementary service streamlines the distribution of important account information to your clients, while enhancing the quality of service you provide. Your clients can also choose to receive their SelectLink account summary either in English or Spanish. If your clients prefer not to consolidate account statements, they can request that account statements with the same address be combined in a single envelope for mailing. Your clients can also elect to have copies of Interested Party statements included in the same envelope.

Pershing’s new Electronic Notification Service for e-Document Suite in NetExchange Client^® alerts your clients by e-mail that new account statements or trade confirmations are available for viewing online. These alerts provide almost instantaneous notification—instead of waiting for the documents to arrive by “snail” mail— and eliminate the need for paper account statements and trade confirmations.

Tax Management
On your behalf, Pershing is proud to provide comprehensive tax preparation information to your clients, updated for the 2006 tax year and available through www.mytaxguide.com. We are also committed to keeping you fully informed about key developments and changes to tax legislation—and how those changes may impact operations within your firm.

One recent example of this has been our extended coverage of The Pension Protection Act of 2006 (PPA). The more than 30 provisions of this act—which impact defined benefit plans, individual retirement accounts (IRAs) and defined contribution plans—are being discussed (along with their in-house processing requirements) in Pershing’s online PPA on Point series (please see the accompanying sidebar below).

We Are Here to Help You
The bottom line: Pershing operational support frees up your time and helps you devote more of your time to serving your clients. To learn more about our operational strengths, and how they can benefit you, please contact your financial organization.