Northern Trust Enhances Operational Support for Central Counterparty Clearing of OTC Derivatives

  Northern Trust Enhances Operational Support for Central Counterparty
  Clearing of OTC Derivatives

Business Wire

CHICAGO -- March 13, 2013

To help clients comply with new regulations intended to manage risk in the
financial derivatives markets, Northern Trust has enhanced its systems to
provide operational support for central clearing of certain over-the-counter
(OTC) derivatives.

New capabilities allow Northern Trust to electronically capture trade
information on swaps, a widely used type of OTC derivative, and connect with
external parties to route trades to electronic matching platforms, clearing
firms and exchanges. The enhancements to Northern Trust’s custody and
middle-office platform will support compliance with the Dodd-Frank Act in the
United States and the European Markets Infrastructure Regulation (EMIR), which
require investors to clear OTC derivatives through centralized exchanges,
rather than on a bilateral basis.

"As the infrastructure for derivatives transactions moves toward central
counterparty (CCP) clearing, we have developed processing efficiencies that
allow us to electronically capture and confirm CCP trades, interface with the
exchanges and clearing firms, and offer margin management,” said Judson Baker,
Product Manager for Derivatives and Collateral Management at Northern Trust.
"Our ability to provide these services saves our clients from having to make
costly investments in systems and operational support needed to meet
regulatory requirements."

Available on a global basis to investment managers, institutional investors
and other asset servicing clients, the new capabilities are integrated with
Northern Trust's Investment Operations Outsourcing, global custody and
collateral management systems to support all aspects of post-trade processing.

“The regulatory environment continues to evolve, bringing greater demand for
derivatives services," said Peter Cherecwich, Head of Global Fund Services at
Northern Trust. “We are committed to investing in automation and increased
product coverage to fully support derivatives processing, including margin
management, in support of our back and middle office outsourcing clients.”

Northern Trust offers an active collateral management service for clients that
trade futures and listed options, OTC and cleared swaps. Northern Trust
provides this service for an array of derivative participants including asset
managers, corporations, pension funds and family offices located around the
globe. In addition, Northern Trust will continue to invest in operational
capabilities in support of margin management to help clients optimize their
pledged assets.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment
management, asset and fund administration, banking solutions and fiduciary
services for corporations, institutions and affluent individuals worldwide.
Northern Trust, a financial holding company based in Chicago, has offices in
18 U.S. states and 16 international locations in North America, Europe, the
Middle East and the Asia-Pacific region. As of December 31, 2012, Northern
Trust had assets under custody of US$4.8 trillion, and assets under investment
management of US$758.9 billion. For more than 120 years, Northern Trust has
earned distinction as an industry leader in combining exceptional service and
expertise with innovative products and technology. For more information, visit
www.northerntrust.com or follow us on Twitter @NorthernTrust.

Contact:

Northern Trust Corporation
Asia-Pacific and North America
John O’Connell, +1 312-444-2388
John_O’Connell@ntrs.com
or
Europe, Middle East and Africa
Camilla Greene, +44 (0) 207 982 2176
Camilla_Greene@ntrs.com
http://www.northerntrust.com