ACSDA MEMBERS AT A GLANCE
COMPARATIVE BUSINESS
MODELS
2
Canada
USA
Mexico
Dom. Rep
Jamaica
E. Carib.
Barbados
Guatemala
El Salvador
Nicaragua
Trini & Tob
Venezuela
Panama
Colombia
Brazil
Peru
Bolivia
Chile
Uruguay
Argentina
South Africa
Caja de Valores S.A. (Argentina)
3
Brief Profile

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

Caja de Valores, S.A. (CVSA) began
operations in November 1974 as a private
corporation. Is the only corporation legally
authorized to grant securities custody
services.
Provides access to global markets for
investors.
CVSA is the natural vehicle for
dematerialization of securities through its
registrar functions.
CVSA also performs other services beyond its
core services like: Shareholders registrar,
national numbering agency, deferred
payment checks (DPC) and IT services.
www.cajval.sba.com.ar
Marketplace Drivers

Achieving a sustained growth in net capital as an
assurance to participants, investors and the
market of sound financial infrastructure.

Offering the latest technology systems
2011 Priorities

Migration of its main platform including
MERVAL’s trading system.

Receiving authorization to act as Certification
entity for Digital Signature.

Adjustment of the new buildings to offer greater
functionality to the services offered.
Mercado de Valores de Buenos Aires S.A.
(Argentina)
4
Brief Profile



Founded in 1929, Mercado de Valores de Buenos
Aires (MERVAL) is focused on providing: trading and
Central Counterparty and Clearing House for the
settlement, monitoring and guarantee of the
transactions executed through its two trading
systems: the Concurrence Market and the Continuous
Trading System. In addition, it issues its own rules
and regulations, since it is a self-regulated entity.
Services include: Order management, trading,
clearing and settlement (CCP), stock watch, futures,
options, loan and repo trades management, risk
management services, information and technology
and training, data distribution, research and
development.
MERVAL owns 49.98% of Caja de Valores (CSD),
99.99% of Banco de Valores (Bank) and 30% of
Argenclear S.A. (OTC-CH).
www.merval.sba.com.ar
Marketplace Drivers

Achieving a sustained growth in net capital as
an assurance to participants, investors and the
market of sound financial infrastructure.

Offering the latest technology systems
2011 Priorities

MERVAL continues the re-engineering of the
processes that support the services it provides.

Updating communications networks

Offering cross-border clearing and settlement
BM&FBOVESPA (Brazil)
5
Brief Profile


BM&FBOVESPA was created in 2008 as a
result of the integration between the São
Paulo Stock Exchange and the Brazilian
Mercantile & Futures Exchange as a publicly
traded, for-profit organization.
BM&FBOVESPA acts as a CSD in Brazil.
BM&FBOVESPA is a vertically integrated
organization that covers exchanges of
equities and derivatives, clearing and risk
management, market supervision and posttrade services offered by its CSD and
Settlement Bank.
www.bmfbovespa.com.br
Marketplace Drivers



Take advantage of the opportunities from the
Brazilian market and economy growth
Attraction of new participants to the market,
specially investors and listed companies
Development of products and markets
2011 Priorities

Delivery the first phase (derivatives) of a new
multi-asset and multi-market electronic trading
platform

Advance in the ongoing project that aims to
integrate the current four post-trading structures

Building a new external data center

Promote adjustments in fee structures

Launching and development of products (ETFs,
Indices, Derivatives, market-maker programs,
among others)

Attracting new participants to the market

Strategic International Partners
CETIP S.A. Balcão Organizado de Ativos e
Derivativos (Brazil)
6
Brief Profile


CETIP was established in 1986 with the
support of the Central bank and as an
initiative from financial market institutions.
It is the CSD for fixed income securities and
OTC derivatives, with same-day settlement in
Central Bank Money.

Listed Company

Market Capitalization – US$ 3,2 billions


Regulated by Central Bank and CVM
(Securities and Exchange Commission)
More than 15.000 of participants
www.cetip.com.br
Marketplace Drivers



Roll Out Collateral Management
Develop right strategy for our new trading fixed
income platform
Roll Out Real Estate Solutions
2011 Priorities



To establish the cooperation with Clearstream to
launch Triparty Collateral Management;
To create Cetip Educacional – a training
program for participants;
Improvement the processes and controls of the
depository services to align with the international
standards and demands from custodians and
transfer agents (ex. Reconciliation process)
Bolsa de Valores de Montevideo (Uruguay)
7
Brief Profile

Was founded in 1867 a non profit
organization owned by brokers.

Maintains two categories of members, active
members represented by brokers and special
members represented by bank, pension funds
and insurance companies.

Provides the only netting, settlement and
custody system in Uruguay.

Provides all the securities clearing and
settlement services.

Provides corporate actions services; including
interest payments, cash dividends, and
capitalizations, attending shareholder
meetings and issuance of custody certificates.
www.bolsademontevideo.com.uy
Marketplace Drivers

Reducing processing costs

Increasing revenue for shareholders

Responding to local market trends
2011 Priorities

Enhancing the back-up site

Transforming from an non-for-profit association
to a commercial corporation
Caja Venezolana de Valores (Venezuela)
8
Brief Profile



CVV was established in 1992 and began
operations in 1996 with equities from CANTV
the Venezuela Telephone Company.
Marketplace Drivers

Political changes
Owned by stock exchanges, banks, issuers,
brokers, and insurance companies.
Services include:
Depository Services - deposits, withdrawals
and transfers,
Corporate action processing
Issuer Services - transfer agent, custody and
paying agent
Clearing Services for Caracas Stock
Exchange or the Venezuelan financial System.
www.cajavenezolana.com
2011 Priorities


Implementation of a system for mass payments in
foreign currency directly to investors
implementation of a system for electronic data
investors
Entidad de Depósito de Valores de Bolivia S.A.
(Bolivia)
9
Brief Profile



Entidad de Depósito de Valores de Bolivia S.A. (EDV),
was established in March 2002, as the only CSD .
In April 2003, started securities custody and
administration services, and in January 2005., clearing
and settlement services for dematerialized securities.
Marketplace Drivers

New capital market services and products development.

Primary dematerialized issuance of fix term deposits,
shares and other instruments.

Promoting the dematerialization of the physical securities
already issued.
EDV Main Services
Registry (dematerializations and primary issuances.)
Clearing and settlement of dematerialized securities
transactions.
Administration: Economic rights collection, transfer of
securities, conveyance of the ownership of securities,
encumbrance of securities ownership and others
Corporate actions processing.
2011 Priorities

Dematerialized issuance and dematerialization of fix term
deposits and shares issued by the banking financial
entities .

Implementing the «Shares Registry Book» service for the
banking financial entities .

Positioning the EDV as the «Information Bureau» of the
Bolivian securities market .

Implementing mechanisms to reduce settlement defaults
such as Settlement Fund, Automatic Securities Lending and
others.
Exercising of political rights.
Keeping and custody of physical securities
All services comply with high quality standards of
security, technology and communications.
www.edvbolivia.com
Depósito Central de Valores S.A. (Chile)
10
Brief Profile

DCV performs the function of custody of securities
in grouped (omnibus) and individual position
accounts for national and foreign securities

DCV electronically records the transfer of ownership
resulting from the operations executed by its
participants on Stock and over the counter Markets.

DCV coordinates and provides the necessary
information for the financial settlement of
operations and for the administration securities’
maturities.




DCV offers services for the registration of publicly
offered securities in dematerialized form, facilitating
their primary placement.
As of 2000, DCV Registros, DCV subsidiary, offers the
market the service of “Administration of
shareholder and fund contributor registers”.
The total investment portfolio balance deposited in
the DCV, as of September 2011 amounted to US$
250 billion.
The number of transactions registered in the period
Jan. – Sep. 2011, was 1.2 million transactions
www.dcv.cl
Marketplace Drivers

Focus on sustainable profitability and culture of innovation

Correct risk management control to accomplish committed
standards

Services for a high level and safe capital market
development
2011 Priorities

Back up site at DTCC premises in USA

Accenture projects to establish:

Procedures related to service development through out the
organization

New Strategic Plan for IT

Repository for OTC forward contracts

Mercado Integrado Latinoamericano (MILA)

Build up a strong infrastructure to provide international
custody services along with DTCC and Euroclear alliances

International services integration platforms through
Fund/Serv and OMGEO.

Strategic processes and customer service interaction redefinition.
Deceval S.A. (Colombia)
11
Brief Profile



Marketplace Drivers
DECEVAL S.A., is the private Colombian Securities
Depository, established in 1992, promoted by the
country’s stock exchange and private financial
institutions.
DECEVAL’s Main Services
•
Custody
•
Administration services: Entitlements and
corporate actions processing.
•
Securities Clearing and Settlement
•
Securities and Promissory notes
dematerialization
•
Issue administration services
•
Shareholders and registrar services
•
Fixed income OTC market transaction registry
DECEVAL 2010 Figures
Assets on Custody:
Dematerialized Assets
DVP transaction volumes
Total transaction Volumes
Total Number of Transactions
www.deceval.com
USD$ 147 Billons
USD$ 113 Billons
USD$ 125 Billons
USD$ 574 Billons
4.4 Million

Development of the Capital Market

Universal banking policies

Improved financial legislation, and revamped the
supervisory framework.

Colombia as Investment grade

Market integration initiatives : Chile – Peru , others

New products: ETF, Derivatives, ETC, ETN, Securities
Lending.
2011 Priorities

STP for main settlement processes: BVC (Stock
Exchange), Central Bank

Market Integration Project : Linked markets Chile,
Peru and Colombia - Processing is being done by
CAVALI, DCV , DECEVAL

ETF processing – STP for creation and redemption

Promissory Notes B2B System

Securities Lending – Supporting BVC initiatives

OTC market transactions registry
CAVALI S.A. I.C.L.V. (Peru )
12
Brief Profile




Is the Central Securities Depositary of the
Peruvian securities market.
Offers the following services: registry, custody,
transfer, clearing and settlement of securities.
Cavali links Peruvian investors to the main
securities markets in the world: United States
of America (through DTCC), Canada (through
CDS) and Europe (through JP Morgan).
Marketplace Drivers

Gain Income Tax Regulatory Reform

Market Integration with Colombia and Chile
2011 Priorities

As of September 2011, CAVALI had in custody
USD 15.97 billion in fixed income securities and
USD 54.68 billion in equity securities.

Business goals

Implementation of Custody Services (including Settlement
Services and Back Office) targeted to Institutional Investors
and Brokers

Shareholder Registry Service for issuers

Implementation of mechanisms for repos and Securities
Lending (OTC) for both equities and fixed income.

Beginning of MILA

Evaluation of the implementation of a CCP
Risk Management


Technology

www.cavali.com.pe
Applying for certification in International Information
Security Management standards (ISO/IEC 27001)
Implementation of an alternate data center outside Lima to
enhance institutional operability (BCP)
Deposito Centralizado de Valores
Banco Central de Ecuador
13
Brief Profile


Depósito Centralizado de Valores Banco
Central del Ecuador (DCV-BCE) began
operations in 2009.
Its main objective is to mitigate risks
associated with custody and management of
securities issued by Ecuadorian State.
Marketplace Drivers

Increased custody volumes

Increased percentage of dematerialization

Increased number of participants in Market
Value
2011 Priorities

International and Global Custody Services
 Handles, fixed income and other instruments
in dematerialized form or immobilized, public We are working to open deposit accounts with
global custodians, to promote stock investing abroad.
and private.

Central Counterparty .- We are working with
 Links participants to the SNP (Settlement
market participants to promote the existence of
System Payment) system which is the
central counterparty.
securities settlement system.

Contribution and market promotion of culture
 Provides cross-border services through
in the population: We will develop events and forums
EUROCLEAR account.
with the participation of international exhibitors in
order to share best practices.
Central de Deposito de Valores, S.A. de C.V.
(El Salvador)
14
Brief Profile

Central de Deposito de Valores, S.A. de C.V.
(CEDEVAL) began operations in 1998.

Its main objective is to mitigate risks
associated with custody and management of
securities.

Handles equities, fixed income and other
instruments in dematerialized form or
immobilized.

Links participants to the SECAV system which
is the securities settlement system.

Provides cross-border services
Marketplace Drivers
2011 Priorities

Implement a Regional Settlement for the Alliance of
Central Market (Amerco), through agreements with
Custodian Bank of Costa Rica and Panama Central
Depository, using the Integrated Payments developed
by the Central Banks of the region.

Implementation of an automated and direct
interconnection to the Central Reserve Bank of El
Salvador who can fulfill better and more efficient
settlement of the Salvadoran market.

Custody Service Expansion to other instruments and
development of support services for mutual funds.
Central de Valores Nacional (Guatemala)
15
Brief Profile




Bolsa Nacional de Valores, SA. appointed
CVN to provide omnibus depository services
and settlements of transactions.
CVN is the only CSD in Guatemala
and began operations on June 1, 2011.
Marketplace Drivers


Promote the use of securities represented by
book entries.
Automatic connection to the system of Real Time
Gross Settlement RTGS-of-the Central Bank of
Guatemala
CVN provides the following services:
2011 Priorities
Beneficial owner and omnibus depository
services, registration of securities represented  Launch of an independent CSD.
by book entry, recording fractional ownership  Opening of accounts in the Central Bank's RTGS
of global certificates, and exercise of
system in Guatemala.
custody rights.

Standard messaging development for bookAs of October 27, 2011 held a total of U.S.
entry securities accounts of supervised entities.
$ 2.65 billion.

Enhanced security standards within the CSD’s
systems.
Central Nicaragüense de Valores (Nicaragua)
16
Brief Profile

CENIVAL was founded in 1997 by the
Nicaragua Stock Exchange.

Is a private, for-profit, Limited corporation.

Is recently fully dematerialized.

Has a linkage with Latin Clear
Marketplace Drivers

Risks Mitigation

Expand services and products

Increased custody volumes
2011 Priorities



www.cenival.com
Obtain approval from the regulatory body on
the regulations necessary to make the monetary
settlement of transactions under a model of
delivery versus payment..
Expand the type of instruments in custody as
Certificates of Deposit and Pledge Bonds both
dematerialized.
Open an account at the Central Bank of
Nicaragua for the cash settlement of transactions
on a delivery versus payment model.
Central Latinoamericana de Valores, S. A.
(Panama)
17
Brief Profile




Latin Clear began operations in May 1997 as a
private company providing depository,
administration, clearing and settlement services
for securities.
Other services include pledging of securities,
international links with other CSD’s, ISIN code
allocation, Payment and transfer agent.
Marketplace Drivers

Offer wider range of services and expanding its
product base to meet participant needs.

Finding alternative sources of income

Enhancing current systems and processes

On September ,2011, the Government issued the
Law No. 67, that amends the Securities
Market Act (Law-Decree No. 1, dated 8 July 1999).
On February 23th, 2011, the corporate
reorganization process was completed, by Latin
Clear and the Bolsa de Valores de Panama, S.
A. will constitute a holding company (Latinex
Holdings, Inc.), consolidating all their
shareholders.
2011 Priorities
Both, Latin Clear and Bolsa de Valores de
Panama, will remain as separate companies with
separate operations and management but with
common shareholders.



www.latinclear.com
Explore new business opportunities with global
custodians to establish custody links, to provide,
through or from Latin Clear, custody of domestic
instruments, to foreign investors.
Launch of Options Program, in conjunction with the
Stock Exchange.
To enhance securities safe keeping and
administration systems, in order to automate as most
processes.
Barbados Central Securities Depository Inc.
18
Brief Profile




Barbados Central Securities Depository Inc. –
Registrar and Transfer Agent for many of the
companies listed on the Barbados Stock
Exchange (BSE).
Established in 1998; Self Regulatory
Organization; Wholly-owned subsidiary of
BSE; Regulated by the Financial Services
Commission under the Financial Services
Commission Act and the Securities Act Cap
318A.
Facilitates electronic transfer of share
ownership; Manage approx. 120,000
accounts; Facilitates immobilization of shares
for shareholders whose companies still
maintain certificated registers.
Member of Association of Central Securities
Depositories of the Americas.
Marketplace Drivers

Consolidation

Low trading volumes / values

Confidence in investing low

Need to extend reach of market
2011 Priorities

CXN - extend reach to region

International Securities Market

Rollout of new services

Dematerialization of Government Securities


www.bse.com.bb

Promote dematerialization and trading of
Corporate Debt Securities
Work with Government committees to bring
legislation up to level required to enable
business development
Human resource development
CEVALDOM Deposito Centralizado de Valores
(Dominican Republic)
19
Brief Profile



Incorporated in January 2003 by the
initiative of the Dominican Republic Stock
Exchange.
Offers services of custody, settlement,
transfer and clearing.
After the authorization granted by the
Monetary Board, in January 2011
CEVALDOM began to provide custody
services for the Central Bank dematerialized
securities.
www.cevaldom.com
Marketplace Drivers

Innovation

Regulatory Changes

Risk Management
2011 Priorities

By the end of March, CEVALDOM will open its
new facilities with specialized spaces and stateof-the-art structures of physical and logical
security.

Integration of CEVALDOM’s business application
system to the Central Bank’s Real Time Gross
Settlement (RTGS), on SWIFT protocol,
completely automating the process and achieving
DVP settlement.
Eastern Caribbean Central Securities Depository
20
Brief Profile

Wholly owned subsidiary of the Eastern
Caribbean Stock Exchange (ECSE).

Regulated by the Eastern Caribbean
Securities Regulatory Commission

Provides clearance and settlement of trades
transacted on the ECSE.
www.ecseonline.com
Marketplace Drivers

Efficiency
2011 Priorities

Procurement of new CSD application

Registration of Repurchase Agreements in
proposed Central Bank-administered Repo
market.

Introduction of SWIFT Alliance Lite and use of
STP for asset services payments
Jamaica Central Securities Depository
21
Brief Profile

Was first established in 1998, the JCSD is
the oldest and arguably largest depository
in the Caribbean.

Wholly owned subsidiary of the Jamaica
Stock Exchange.

Regulated by the Financial Services
Commission.

JCSD is a public not for public organisation
and became a listed company in 2008.
Marketplace Drivers

Transparency

Efficiency
2011 Priorities



www.jamstock.com
Successful launch of U$ Market Settlement
System
Implementation of new CSD Software Platform
Project for trading of Government of Jamaica
sovereign debt on the Exchange
Trinidad and Tobago Central Securities
Depository Ltd.
22
Brief Profile

Is a self-regulatory organization (SRO) and is
regulated by the Trinidad and Tobago
Securities and Exchange Commission.

Incorporated under the Companies Act
September 1998 and commenced
operations January 2003.

Provided book-entry transfer, clearing and
depository services, settlement and registry
services.
www.stockex.co.tt
Marketplace Drivers

Safe capital market

Efficiency
2011 Priorities

New company listings and extend frontier to
diversify company listings from the energy
sector and non energy sectors

Work with Securities and Exchange Commission
to improve and propose new legislation and rule
changes to develop the capital market

New business development and marketing
programs/initiatives to encourage investor
confidence

Increase and expand the Registry Services
offerings to facilitate coupon payments , bond
listings and sub-registrar services
The Canadian Depository for Securities Ltd.
23
Brief Profile




CDS is Canada’s national securities depository,
clearing and settlement hub and is accountable
for the custody, processing of post trade
transactions, entitlements collection/distribution
and accurate record keeping on behalf of its
participants.
Marketplace Drivers

Canada weathered global recession fairly well

Regulatory framework debate

Growing competition and consolidation in capital
market infrastructures in Canada
CDS provides an international gateway to its
participants through its cross border links with
DTCC and other international markets.
2011 Priorities

Due bill processing
CDS operates a single processing system in two
currencies (CAD & USD) and processes over 360
million securities transactions valued at CAD
70.856 trillion annually and holds over CAD 3.7
trillion in securities on deposit.

OTC derivatives

CNS real-time settlement

CDCC fixed income netting interface

Bulletins redesign – corporate actions

Enterprise risk management

Dematerialization

Transfer agents as paying agents and DRS

Public affairs program
CDS also provides a variety of services to the
financial industry through its subsidiaries.
www.cds.ca
S.D.Indeval (Mexico)
24
Brief Profile


Indeval holds almost one trillion dollars in
securities and settles daily transactions for
over 250 billion USD.
INDEVAL is the only Central Securities
Depository and Securities Settlement System
in Mexico and operates at an omnibus level

Indeval is now part of Grupo Bolsa.

Our Services

Custody services, physical and book-entry
securities transfers

Securities and cash clearing & settlement.

Securities Lending Program

Sub-custody services for Mexican securities
listed globally (and for international equities
listed on the Mexican Stock Exchange - BMV.)
www.indeval.com.mx
Marketplace Drivers

Customer Service

Business innovation

Technical innovation

Risk management
2011 Priorities

OTC Derivatives

Multi-Currency Payment Management

Securities Lending for the Mexican Stock
Exchange
Strate Limited (South Africa)
25
Brief Profile





Established in 1998, Strate Ltd is the licensed CSD
in South Africa.
Through alignment to international best practice, it is
ranked amongst some of the leading CSDs in the
world and South Africa receives a AA- Capital
Markets risk rating from Thomas Murray.
The company handles the settlement of a number of
securities including equities and bonds for the
Johannesburg Stock Exchange (JSE), and a range
of derivative products such as warrants, ETFs, retail
notes and tracker funds. In 2010, Strate added the
settlement of money market securities to its portfolio
of services.
Strate provides services to Issuers for their investors
in terms of the Companies Act and Securities
Services Act (SSA), 2004.
Assets under custody are in excess of US$ 900
billion with over 23 millions trades settled per year
www.strate.co.za
Marketplace Drivers



Risk management and operational excellence
Regulatory and best practice reforms
International linkages and partnerships with other
CSDs
2011 Priorities



Phase 2 of the dematerialization of Money Market
Securities
The “Golden Source” for corporate events
Introduction of Segregated Depository Accounts
(Account Operator Model)

T+3 for Equities

Bonds system replacement

Long term:

International links with other CSDs

Collaboration with DTCC on various projects

Retail model for South Africa

OTC Derivatives Register
The Depository Trust & Clearing Corporation (USA)
26
Brief Profile



DTCC, through its subsidiaries, provides
clearance, settlement and information
services for equities, corporate and municipal
bonds, government and mortgage-backed
securities, money market instruments and
over-the-counter derivatives. DTCC is also a
leading processor of mutual funds and
insurance transactions.
DTCC's depository provides custody and
asset servicing for more than 3.6 million
securities issues from the United States and
121 other countries/territories, valued at
US$36.5 trillion. In 2010, DTCC settled
nearly US$1.66 quadrillion in securities
transactions.
DTCC has operating facilities and data
centers in multiple locations in the United
States and overseas.
www.dtcc.com
Marketplace Drivers

Regulatory reform

Focus on transparency and risk management

Managing systemic risk

Capital requirements
2011 Priorities



Radical rethinking of risk management at DTCC
•
Consolidated risk oversight and “three lines of
defense”
•
Strengthen operational and systemic risk
management functions
•
Mitigate liquidity risk across clearing corporations
and depository
Transparency and regulatory reporting initiatives:
Swap Data Repositories, Legal Entity Identifiers
New and enhanced products
•
Corporation Actions enhancements and standards
(20022/XBRL)
•
Mutual Fund Multicurrency Settlement
•
New York Portfolio Clearing
Market Infrastructure: Who does what? (South America 1)
27
Argentina
Brazil
Uruguay
Venezuela
BM&FBOVESPA(CCP &
CH)
CETIP (CH)
BVM (Clearing)
CCP or Clearing House
MERVAL (CCP and
Clearing)
Caracas Stock
Exchange Clearing
BM&FBOVESPA
(Gross)
CETIP (Gross)
BVM (Net)
Securities Deliveries
CVSA
MERVAL uses DVP
system
Gross (Equity) /CVV
– Free Of Payment
(Debt)
MERVAL (for stock
market trades)
BM&FBOVESPA (Net)
CETIP (Gross)
BVM (Net)
Net (Equity) /CVV –
Free Of Payment
(Debt)
MERVAL (Stock Market
Trades) using Banco de
Valores, BCRA and
other bank accounts.
BM&FBOVESPA
CETIP
BVM (Banco Comercial
and Central Bank of
Uruguay)
Net (Equity) /CVV –
Free Of Payment
(Debt)
CVSA
BM&FBOVESPA(CCP &
CH)
CETIP (CH)
BVM
CVV
(Gross/Net)
Cash Clearing
(Gross/Net)
Cash Settlement
CSD
Market Infrastructure: Account Model and Settlements
(South America 1)
28
Argentina
Brazil
Uruguay
Venezuela
Account Structure:
Beneficial Owners or
Omnibus Accounts at
Member Level
Caja de Valores both
Participants and
Beneficial Owners
Beneficial Owner
Accounts
•Omnibus Accounts
Standard Settlement
Cycle for Equities
T+3 (also available T0,
T+1 and T+2)
T+3
T+3
Merval uses Model 3.
BM&Fbovespa:
Model 2.
CETIP:
Bilateral
Settlement
Model 1 and 2
Model 3
Model 2 for equities
Debt is Free of Payment
Yes at the CCP level –
Collateral and
margins required –
BM&F BOVESPA
Yes
CETIP - Triparty
Collateral
Management
YES
NA
BIS DVP Model: GrossGross (1), Gross –
Net(2), Net-Net(3)
Collateral and/or
Guarantee Fund
Beneficial Owner
Accounts
Market Infrastructure: Who does what? (South America 2)
29
CCP or Clearing House
Bolivia
Colombia
Clearing House –
BCB Bolivian Bank
Central
BRC - Colombian Central Bank for
government securities- NO CCP,
Colombia CCP for Derivatives, BVC
for Equity
BCS
CCLV (2010)
N/A
EDV - Gross
DECEVAL (Gross DVP for Fixed
Income, Securities Leg for Equity.
DVP; DVD and PVP)
DCV – Central Bank Depository
(gross and net for government
securities)
CCP (CCLV)-Net;
DCV-Gross
CAVALI - Gross
EDV - Net
BRC – The Colombia Central Bank)
BVC – Net cash for Equities using
the central bank payment system
DECEVAL – gross cash using the
Central Bank system
BCS – Net
CCLV (2010)-Net
CAVALI (Net)
Settlement of
funds through the
Central Bank of
Bolivia-BCB
DECEVAL, BVC, CCP using the
Colombian Central Bank payment
system
Combanc
Central Bank
CAVALI (Net)
EDV
DECEVAL - beneficial owner system Gross
– DVP; DVD; PVP systems . All securities
DCV (only for government debt ) (Gross)
DCV
CAVALI
Securities Deliveries
(Gross/Net)
Cash Clearing
(Gross/Net)
Cash Settlement
CSD
Chile
Peru
Market Infrastructure: Account Model and Settlements
( South America 2)
30
Bolivia
Account Structure:
Beneficial Owners or
Omnibus Accounts at
Member Level
Standard Settlement
Cycle for Equities
BIS DVP Model: GrossGross (1), Gross –
Net(2), Net-Net(3)
Collateral and/or
Guarantee Fund
Colombia
Chile
Peru
Beneficial
Owners (local)
•Beneficial Owners. More
than 700 thousand accounts
•Omnibus accounts for
market Integration
Mixed Omnibus
account- with the
possibility to open a
beneficial owners
account
Beneficial Owners (local)
Omnibus accounts
(MILA)
T+0 to T+3
T+3
T+2
T+3
Model 2 DVP BIS
(At the end of
the cycle, gross
settlement and
net value of
funds)
Model (1), Irrevocable
settlement of funds and
securities with payment
exchange on line on both
depositories – Deceval and
DCV – Automatic debit
accounts payments
Model 2, for equities
administered by BVC –The
Colombian Stock Exchange
Model 3 – CCP for derivatives
Bilateral settlement (1–
2)
DVP Model 2
Guarantee Fund
administered by
the EDV
•Yes at the CCP level –
Collateral and margins
•BVC – Collateral posted for
securities transactions like
repos, securities lending,
others
Yes, for collateral
services
Multilateral settlement
(3)
(DVP Model 2 provides for
gross settlements of securities
transfers followed by net
settlement of funds transfers.)
Participants contribute
for a Settling Fund
managed by CAVALI
Market Infrastructure: Who does what? (Central America)
31
Ecuador
CCP or Clearing House
Securities Deliveries
El Salvador
Guatemala
Nicaragua
Panama
NA
NA
NA
NA
NA
DECEVALE
DCV- BCE
(Gross)
CEDEVALE
(Gross)
CVN
(Gross)
CENIVAL
(Gross)
LATIN CLEAR
(Gross)
DECEVALE
DCV
(NET
CEDEVALE
(Net)
CVN
(Gross)
NA
LATIN CLEAR
(Net)
Banco
Central
BVES,
Banco
Central de
Reserva
(Central
Bank)
Central Bank
Participants settle
among
themselves
Banco Nacional
de Panamá
DECEVALE
DCV
CEDEVALE
CVN
CENIVAL
LATIN CLEAR
(Gross/Net)
Cash Clearing
(Gross/Net)
Cash Settlement
CSD
Market Infrastructure: Account Model and Settlements
(Central America)
32
Account Structure:
Beneficial Owners
or Omnibus
Accounts at
Member Level
Standard Sett Cycle
for Equities
BIS DVP Model:
Gross-Gross (1),
Gross – Net(2), NetNet(3)
Collateral and/or
Guarantee Fund
Ecuador
El Salvador
Guatemala
Nicaragua
Panama
Beneficial
Owner Account
Model
Beneficial
Owner Account
Model
Omnibus Accounts
Omnibus Accounts
Omnibus Accounts
T+3
T+3
T+3
T+3
T+3
Model 2 : Gross
Securities
Net Cash
Model 2 : Gross
Securities
Net Cash
Model 1: Gross
Securities – Gross
Cash
NA
Model 2 : Gross
Securities
Net Cash
NA
NA
NA
NA
NA
Market Infrastructure: Who does what?
(The Caribbean)
33
Barbados
CCP or Clearing
House
Securities
Deliveries
Dom. Rep
Eastern
Caribbean
Jamaica
Trinidad &
Tobago
BCSDI
CEVALDOM
Jamaica Central
Securities
Depository (JCSD)
TTCD
BCSDI
GROSS
Securities are
settled gross
within JCSD
TTCD
BCSDI
GROSS
BCSDI through RTGS
account with the
Central Bank of
Barbados
CEVALDOM
Through Central
Bank
BCSDI
CEVALDOM
(Gross/Net)
TTCD
Cash Clearing
(Gross/Net)
Cash Settlement
CSD
ECCSD
Funds are settled
net within Central
Bank
Central Bank of
Trinidad and
Tobago
(CBTT)
JCSD
TTCD
Market Infrastructure: Account Model and Settlements
(The Caribbean)
34
Barbados
Account Structure:
Beneficial Owners
or Omnibus
Accounts at
Member Level
Standard Sett Cycle
for Equities
BIS DVP Model:
Gross-Gross (1),
Gross – Net(2), NetNet(3)
Collateral and/or
Guarantee Fund
Dom.
Republic
Beneficial
Owners
Beneficial
Owners
T+3
Eastern
Caribbean
Omnibus
Accounts
Trinidad &
Tobago
Jamaica
Beneficial Owners
Beneficial Owners
DO NOT TRADING
EQUITIES.
T+3
T+3
Model 2 : Gross
Securities
Net Cash
Model I
GROSS- GROSS
DVP Model 2
Gross-Net (2)
YES
NO
Yes, maintained by
JSE
Yes
Market Infrastructure: Who does what?
(North America & South Africa)
35
Canada
CCP or Clearing House
Securities Deliveries
(Gross/Net)
Cash Clearing
Mexico
CSD
South Africa
CDS
CCV
DTCC’s NSCC & FICC
No CCP in SA, Strate clearing
house for Bonds.
Net per issue
for (exchange)
CNS trades;
Gross for OTC,
money market,
institutional
Indeval
Gross/Net
NSCC & FICC - Net per issue
DTC - Gross
Strate:
Equities – Net/Net
Bonds – Gross/Net
MM – Gross/Gross
(Securities / cash)
CDS (Net per
participant)
Indeval
Gross/Net
NSCC: Net-net per participant.
DTC Net-net per participant, then
cross-endorses with NSCC.
FICC settles net per securities
settlement.
As above
CDS, using
Settlement
Banks and its
Central Bank
Account
Indeval
Gross/Net
DTC end-of-day net
via Settlement Banks & Fed’s
National Settlement/Fedwire.
NSCC via DTC’s single settlement
system. FICC via Fed Clearing
Banks & Fedwire.
South African Reserve Bank
– cash settlement in Central
Bank funds
CDS
Indeval
DTC
Federal Reserve
Strate Ltd
(Gross/Net)
Cash Settlement
United States
Market Infrastructure: Account Model and Settlements
(North America & South Africa)
36
Canada
Mexico
United States
South Africa
Omnibus Accounts
Omnibus Accounts
Omnibus Accounts
Omnibus for equities and
bonds and beneficial
ownership for money
market securities
T+3
T+3
T+3
T+5
DVP Model 1 and DVP
Model 3
DTC is DVP Model2
BIS DVP Model: GrossGross (1), Gross – Net(2),
Net-Net(3)
BIS model 2
Irrevocable
settlement of funds
and securities with
payment exchange
at the end of day
based on
participants
established line of
credit.
Equities – Model 3
Bonds – Model 2 and 3
(based on settlement run)
Money Market Securities –
Model 1
Collateral and/or
Guarantee Fund
Extender of credit
arrangement,
participant funds
and Aggregate
Collateral Value
Indeval: Participants
settlement fund
CCV: Clearing Fund
DTC: U.S .cash Participants
Fund.
NSCC: U.S .cash & U.S.
Treasury and Agency
securities .
Account Structure:
Beneficial Owners or
Omnibus Accounts at
Member Level
Standard Sett Cycle for
Equities
(DVP Model 2 provides for gross
settlements of securities
transfers followed by net
settlement of funds transfers.)
Yes by the Stock Exchange
for certain on market
equity and bond
transactions only