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ROUNDTABLE DISCUSSION A COMPARATIVE LOOK AT

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ROUNDTABLE DISCUSSION A COMPARATIVE LOOK AT Powered By Docstoc
					ACSDA MEMBERS AT A GLANCE
COMPARATIVE BUSINESS
MODELS
2




                                         Canada



                     USA


    Mexico                        Dom. Rep
                   Jamaica
                                      Barbados        E. Carib.
        Guatemala
     El Salvador       Nicaragua                 Trini & Tob

                                        Venezuela
          Panama
                           Colombia

                                                                  Brazil
                           Peru
                                            Bolivia

                              Chile

                                                                           South Africa
                                                           Uruguay


                                                  Argentina
         Caja de Valores S.A. (Argentina)
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    Brief Profile                                       Marketplace Drivers
        Caja de Valores, S.A. (CVSA) began                Achieving a sustained growth in net capital as an
         operations in November 1974 as a private           assurance to participants, investors and the
         corporation. Is the only corporation legally       market of sound financial infrastructure.
         authorized to grant securities custody            Offering the latest technology systems
         services.
        Provides access to global markets for
         investors.                                     2011 Priorities
        CVSA is the natural vehicle for                   Migration of its main platform including
         dematerialization of securities through its        MERVAL’s trading system.
         registrar functions.                              Receiving authorization to act as Certification
        CVSA also performs other services beyond its       entity for Digital Signature.
         core services like: Shareholders registrar,       Adjustment of the new buildings to offer greater
         national numbering agency, deferred                functionality to the services offered.
         payment checks (DPC) and IT services.




        www.cajval.sba.com.ar
         Mercado de Valores de Buenos Aires S.A.
         (Argentina)
4
    Brief Profile                                                Marketplace Drivers
        Founded in 1929, Mercado de Valores de Buenos              Achieving a sustained growth in net capital as
         Aires (MERVAL) is focused on providing: trading and         an assurance to participants, investors and the
         Central Counterparty and Clearing House for the
         settlement, monitoring and guarantee of the
                                                                     market of sound financial infrastructure.
         transactions executed through its two trading              Offering the latest technology systems
         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.
                                                                 2011 Priorities
        Services include: Order management, trading,
         clearing and settlement (CCP), stock watch, futures,
                                                                    MERVAL continues the re-engineering of the
         options, loan and repo trades management, risk              processes that support the services it provides.
         management services, information and technology            Updating communications networks
         and training, data distribution, research and
         development.                                               Offering cross-border clearing and settlement
        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
         BM&FBOVESPA (Brazil)
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    Brief Profile                                      Marketplace Drivers
        BM&FBOVESPA was created in 2008 as a             Take advantage of the opportunities from the
         result of the integration between the São         Brazilian market and economy growth
         Paulo Stock Exchange and the Brazilian           Attraction of new participants to the market,
         Mercantile & Futures Exchange as a publicly       specially investors and listed companies
         traded, for-profit organization.
         BM&FBOVESPA acts as a CSD in Brazil.             Development of products and markets
        BM&FBOVESPA is a vertically integrated        2011 Priorities
         organization that covers exchanges of           Delivery the first phase (derivatives) of a new
         equities and derivatives, clearing and risk      multi-asset and multi-market electronic trading
         management, market supervision and post-         platform
         trade services offered by its CSD and           Advance in the ongoing project that aims to
         Settlement Bank.                                 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
        www.bmfbovespa.com.br
        CETIP S.A. Balcão Organizado de Ativos e
        Derivativos (Brazil)
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    Brief Profile                                         Marketplace Drivers
        CETIP was established in 1986 with the              Roll Out Collateral Management
         support of the Central bank and as an               Develop right strategy for our new trading fixed
         initiative from financial market institutions.       income platform
        It is the CSD for fixed income securities and       Roll Out Real Estate Solutions
         OTC derivatives, with same-day settlement in
         Central Bank Money.
                                                          2011 Priorities
        Listed Company
                                                             To establish the cooperation with Clearstream to
        Market Capitalization – US$ 3,2 billions             launch Triparty Collateral Management;
        Regulated by Central Bank and CVM                   To create Cetip Educacional – a training
         (Securities and Exchange Commission)                 program for participants;
        More than 15.000 of 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)



        www.cetip.com.br
         Bolsa de Valores de Montevideo (Uruguay)
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    Brief Profile                                         Marketplace Drivers
        Was founded in 1867 a non profit                    Reducing processing costs
         organization owned by brokers.                      Increasing revenue for shareholders
        Maintains two categories of members, active         Responding to local market trends
         members represented by brokers and special
         members represented by bank, pension funds
         and insurance companies.
                                                          2011 Priorities
        Provides the only netting, settlement and
         custody system in Uruguay.                          Enhancing the back-up site
        Provides all the securities clearing and            Transforming from an non-for-profit association
         settlement services.                                 to a commercial corporation
        Provides corporate actions services; including
         interest payments, cash dividends, and
         capitalizations, attending shareholder
         meetings and issuance of custody certificates.




        www.bolsademontevideo.com.uy
         Caja Venezolana de Valores (Venezuela)
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    Brief Profile                                        Marketplace Drivers
        CVV was established in 1992 and began              Political changes
         operations in 1996 with equities from CANTV
         the Venezuela Telephone Company.
        Owned by stock exchanges, banks, issuers,
         brokers, and insurance companies.
        Services include:                               2011 Priorities
         Depository Services - deposits, withdrawals        Implementation of a system for mass payments in
         and transfers,                                      foreign currency directly to investors
         Corporate action processing                        implementation of a system for electronic data
         Issuer Services - transfer agent, custody and       investors
         paying agent
         Clearing Services for Caracas Stock
         Exchange or the Venezuelan financial System.




        www.cajavenezolana.com
           Entidad de Depósito de Valores de Bolivia S.A.
           (Bolivia)
9
    Brief Profile                                                 Marketplace Drivers
       Entidad de Depósito de Valores de Bolivia S.A. (EDV),        New capital market services and products development.
        was established in March 2002, as the only CSD .
                                                                     Primary dematerialized issuance of fix term deposits,
       In April 2003, started securities custody and                 shares and other instruments.
        administration services, and in January 2005., clearing
                                                                     Promoting the dematerialization of the physical securities
        and settlement services for dematerialized securities.
                                                                      already issued.
       EDV Main Services
        Registry (dematerializations and primary issuances.)
                                                                  2011 Priorities
        Clearing and settlement of dematerialized securities
        transactions.                                                Dematerialized issuance and dematerialization of fix term
                                                                      deposits and shares issued by the banking financial
        Administration: Economic rights collection, transfer of       entities .
        securities, conveyance of the ownership of securities,
        encumbrance of securities ownership and others               Implementing the «Shares Registry Book» service for the
                                                                      banking financial entities .
        Corporate actions processing.
                                                                     Positioning the EDV as the «Information Bureau» of the
        Exercising of political rights.                               Bolivian securities market .
        Keeping and custody of physical securities                   Implementing mechanisms to reduce settlement defaults
    All services comply with high quality standards of                such as Settlement Fund, Automatic Securities Lending and
    security, technology and communications.                          others.

    www.edvbolivia.com
       Depósito Central de Valores S.A. (Chile)
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     Brief Profile                                                   Marketplace Drivers
          DCV performs the function of custody of securities           Focus on sustainable profitability and culture of innovation
           in grouped (omnibus) and individual position
                                                                        Correct risk management control to accomplish committed
           accounts for national and foreign securities
                                                                         standards
          DCV electronically records the transfer of ownership
                                                                        Services for a high level and safe capital market
           resulting from the operations executed by its
                                                                         development
           participants on Stock and over the counter Markets.
          DCV coordinates and provides the necessary
           information for the financial settlement of               2011 Priorities
           operations and for the administration securities’            Back up site at DTCC premises in USA
           maturities.
                                                                        Accenture projects to establish:
          DCV offers services for the registration of publicly
                                                                              Procedures related to service development through out the
           offered securities in dematerialized form, facilitating             organization
           their primary placement.                                           New Strategic Plan for IT
          As of 2000, DCV Registros, DCV subsidiary, offers the        Repository for OTC forward contracts
           market the service of “Administration of
           shareholder and fund contributor registers”.                 Mercado Integrado Latinoamericano (MILA)
          The total investment portfolio balance deposited in          Build up a strong infrastructure to provide international
           the DCV, as of September 2011 amounted to US$                 custody services along with DTCC and Euroclear alliances
           250 billion.                                                 International services integration platforms through
          The number of transactions registered in the period           Fund/Serv and OMGEO.
           Jan. – Sep. 2011, was 1.2 million transactions               Strategic processes and customer service interaction re-
       www.dcv.cl                                                        definition.
         Deceval S.A. (Colombia)
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     Brief Profile                                          Marketplace Drivers
       DECEVAL S.A., is the private Colombian Securities      Development of the Capital Market
        Depository, established in 1992, promoted by the       Universal banking policies
        country’s stock exchange and private financial
        institutions.                                          Improved financial legislation, and revamped the
                                                                supervisory framework.
       DECEVAL’s Main Services
        •  Custody                                             Colombia as Investment grade
        •  Administration services: Entitlements and           Market integration initiatives : Chile – Peru , others
           corporate actions processing.
        •  Securities Clearing and Settlement                  New products: ETF, Derivatives, ETC, ETN, Securities
        •  Securities and Promissory notes                      Lending.
           dematerialization                                2011 Priorities
        •  Issue administration services
        •  Shareholders and registrar services                 STP for main settlement processes: BVC (Stock
        •  Fixed income OTC market transaction registry         Exchange), Central Bank

       DECEVAL 2010 Figures                                   Market Integration Project : Linked markets Chile,
                                                                Peru and Colombia - Processing is being done by
        Assets on Custody:             USD$ 147 Billons
                                                                CAVALI, DCV , DECEVAL
        Dematerialized Assets          USD$ 113 Billons
                                                               ETF processing – STP for creation and redemption
        DVP transaction volumes        USD$ 125 Billons
        Total transaction Volumes      USD$ 574 Billons        Promissory Notes B2B System
        Total Number of Transactions   4.4 Million             Securities Lending – Supporting BVC initiatives

 www.deceval.com                                               OTC market transactions registry
         CAVALI S.A. I.C.L.V. (Peru )
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     Brief Profile                                           Marketplace Drivers
        Is the Central Securities Depositary of the            Gain Income Tax Regulatory Reform
         Peruvian securities market.                            Market Integration with Colombia and Chile
        Offers the following services: registry, custody,
         transfer, clearing and settlement of securities.    2011 Priorities
        Cavali links Peruvian investors to the main            Business goals
         securities markets in the world: United States             Implementation of Custody Services (including Settlement
         of America (through DTCC), Canada (through                  Services and Back Office) targeted to Institutional Investors
                                                                     and Brokers
         CDS) and Europe (through JP Morgan).
                                                                    Shareholder Registry Service for issuers
        As of September 2011, CAVALI had in custody
                                                                    Implementation of mechanisms for repos and Securities
         USD 15.97 billion in fixed income securities and            Lending (OTC) for both equities and fixed income.
         USD 54.68 billion in equity securities.                    Beginning of MILA
                                                                    Evaluation of the implementation of a CCP
                                                                Risk Management
                                                                    Applying for certification in International Information
                                                                     Security Management standards (ISO/IEC 27001)
                                                                Technology
                                                                    Implementation of an alternate data center outside Lima to
                                                                     enhance institutional operability (BCP)

     www.cavali.com.pe
         Deposito Centralizado de Valores
         Banco Central de Ecuador
13
     Brief Profile                                    Marketplace Drivers
        Depósito Centralizado de Valores Banco          Increased custody volumes
         Central del Ecuador (DCV-BCE) began             Increased percentage of dematerialization
         operations in 2009.
                                                         Increased number of participants in Market
        Its main objective is to mitigate risks          Value
         associated with custody and management of
         securities issued by Ecuadorian State.      2011 Priorities
      Handles, fixed income and other instruments          International and Global Custody Services
       in dematerialized form or immobilized, public We are working to open deposit accounts with
       and private.                                  global custodians, to promote stock investing abroad.
                                                             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                                      Marketplace Drivers
        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       2011 Priorities
         instruments in dematerialized form or             Implement a Regional Settlement for the Alliance of
         immobilized.                                       Central Market (Amerco), through agreements with
                                                            Custodian Bank of Costa Rica and Panama Central
        Links participants to the SECAV system which       Depository, using the Integrated Payments developed
         is the securities settlement system.               by the Central Banks of the region.
        Provides cross-border services                    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                                       Marketplace Drivers
        Bolsa Nacional de Valores, SA. appointed           Promote the use of securities represented by
         CVN to provide omnibus depository services          book entries.
         and settlements of transactions.                   Automatic connection to the system of Real Time
        CVN is the only CSD in Guatemala                    Gross Settlement RTGS-of-the Central Bank of
         and began operations on June 1, 2011.               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 book-
        As 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                                         Marketplace Drivers
         CENIVAL was founded in 1997 by the                  Risks Mitigation
          Nicaragua Stock Exchange.                           Expand services and products
         Is a private, for-profit, Limited corporation.      Increased custody volumes
         Is recently fully dematerialized.
         Has a linkage with Latin Clear
                                                           2011 Priorities
                                                              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.
         www.cenival.com
         Central Latinoamericana de Valores, S. A.
         (Panama)
17
     Brief Profile                                          Marketplace Drivers
        Latin Clear began operations in May 1997 as a         Offer wider range of services and expanding its
         private company providing depository,                  product base to meet participant needs.
         administration, clearing and settlement services      Finding alternative sources of income
         for securities.
                                                               Enhancing current systems and processes
        Other services include pledging of securities,
         international links with other CSD’s, ISIN code       On September ,2011, the Government issued the
         allocation, Payment and transfer agent.                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.       2011 Priorities
         A. will constitute a holding company (Latinex
         Holdings, Inc.), consolidating all their              Explore new business opportunities with global
         shareholders.                                          custodians to establish custody links, to provide,
                                                                through or from Latin Clear, custody of domestic
        Both, Latin Clear and Bolsa de Valores de              instruments, to foreign investors.
         Panama, will remain as separate companies with
         separate operations and management but with           Launch of Options Program, in conjunction with the
         common shareholders.                                   Stock Exchange.
                                                               To enhance securities safe keeping and
                                                                administration systems, in order to automate as most
                                                                processes.
     www.latinclear.com
         Barbados Central Securities Depository Inc.
18
     Brief Profile                                        Marketplace Drivers
        Barbados Central Securities Depository Inc. –       Consolidation
         Registrar and Transfer Agent for many of the
         companies listed on the Barbados Stock              Low trading volumes / values
         Exchange (BSE).                                     Confidence in investing low
        Established in 1998; Self Regulatory                Need to extend reach of market
         Organization; Wholly-owned subsidiary of
         BSE; Regulated by the Financial Services
                                                          2011 Priorities
         Commission under the Financial Services
         Commission Act and the Securities Act Cap           CXN - extend reach to region
         318A.
                                                             International Securities Market
        Facilitates electronic transfer of share
         ownership; Manage approx. 120,000                   Rollout of new services
         accounts; Facilitates immobilization of shares      Dematerialization of Government Securities
         for shareholders whose companies still
         maintain certificated registers.                    Promote dematerialization and trading of
                                                              Corporate Debt Securities
        Member of Association of Central Securities
         Depositories of the Americas.                       Work with Government committees to bring
                                                              legislation up to level required to enable
                                                              business development
            www.bse.com.bb
                                                             Human resource development
         CEVALDOM Deposito Centralizado de Valores
         (Dominican Republic)
19
     Brief Profile                                      Marketplace Drivers
        Incorporated in January 2003 by the               Innovation
         initiative of the Dominican Republic Stock        Regulatory Changes
         Exchange.
                                                           Risk Management
        Offers services of custody, settlement,
         transfer and clearing.
        After the authorization granted by the         2011 Priorities
         Monetary Board, in January 2011
         CEVALDOM began to provide custody                 By the end of March, CEVALDOM will open its
         services for the Central Bank dematerialized       new facilities with specialized spaces and state-
         securities.                                        of-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.


     www.cevaldom.com
          Eastern Caribbean Central Securities Depository
20
     Brief Profile                                      Marketplace Drivers
         Wholly owned subsidiary of the Eastern           Efficiency
          Caribbean Stock Exchange (ECSE).
         Regulated by the Eastern Caribbean
          Securities Regulatory Commission
         Provides clearance and settlement of trades
          transacted on the ECSE.                       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




         www.ecseonline.com
          Jamaica Central Securities Depository
21
     Brief Profile                                       Marketplace Drivers
         Was first established in 1998, the JCSD is        Transparency
          the oldest and arguably largest depository        Efficiency
          in the Caribbean.
         Wholly owned subsidiary of the Jamaica
          Stock Exchange.
         Regulated by the Financial Services            2011 Priorities
          Commission.
                                                            Successful launch of U$ Market Settlement
         JCSD is a public not for public organisation       System
          and became a listed company in 2008.
                                                            Implementation of new CSD Software Platform


                                                            Project for trading of Government of Jamaica
                                                             sovereign debt on the Exchange




         www.jamstock.com
          Trinidad and Tobago Central Securities
          Depository Ltd.
22
     Brief Profile                                         Marketplace Drivers
         Is a self-regulatory organization (SRO) and is      Safe capital market
          regulated by the Trinidad and Tobago                Efficiency
          Securities and Exchange Commission.
         Incorporated under the Companies Act
          September 1998 and commenced
          operations January 2003.
                                                           2011 Priorities
         Provided book-entry transfer, clearing and
          depository services, settlement and registry        New company listings and extend frontier to
          services.                                            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
         www.stockex.co.tt                                     listings and sub-registrar services
         The Canadian Depository for Securities Ltd.
23
     Brief Profile                                            Marketplace Drivers
        CDS is Canada’s national securities depository,         Canada weathered global recession fairly well
         clearing and settlement hub and is accountable
                                                                 Regulatory framework debate
         for the custody, processing of post trade
         transactions, entitlements collection/distribution      Growing competition and consolidation in capital
         and accurate record keeping on behalf of its             market infrastructures in Canada
         participants.
        CDS provides an international gateway to its         2011 Priorities
         participants through its cross border links with
         DTCC and other international markets.                   Due bill processing
        CDS operates a single processing system in two          OTC derivatives
         currencies (CAD & USD) and processes over 360           CNS real-time settlement
         million securities transactions valued at CAD
         70.856 trillion annually and holds over CAD 3.7         CDCC fixed income netting interface
         trillion in securities on deposit.                      Bulletins redesign – corporate actions
        CDS also provides a variety of services to the          Enterprise risk management
         financial industry through its subsidiaries.
                                                                 Dematerialization
     www.cds.ca                                                  Transfer agents as paying agents and DRS
                                                                 Public affairs program
         S.D.Indeval (Mexico)
24
     Brief Profile                                             Marketplace Drivers
         Indeval holds almost one trillion dollars in            Customer Service
          securities and settles daily transactions for           Business innovation
          over 250 billion USD.
                                                                  Technical innovation
         INDEVAL is the only Central Securities
          Depository and Securities Settlement System             Risk management
          in Mexico and operates at an omnibus level
                                                               2011 Priorities
         Indeval is now part of Grupo Bolsa.
                                                                  OTC Derivatives
         Our Services
                                                                  Multi-Currency Payment Management
            Custody services, physical and book-entry
             securities transfers                                 Securities Lending for the Mexican Stock
            Securities and cash clearing & settlement.            Exchange
            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
         Strate Limited (South Africa)
25
     Brief Profile                                                 Marketplace Drivers
        Established in 1998, Strate Ltd is the licensed CSD          Risk management and operational excellence
         in South Africa.
                                                                      Regulatory and best practice reforms
        Through alignment to international best practice, it is
         ranked amongst some of the leading CSDs in the               International linkages and partnerships with other
         world and South Africa receives a AA- Capital                 CSDs
         Markets risk rating from Thomas Murray.                   2011 Priorities
        The company handles the settlement of a number of            Phase 2 of the dematerialization of Money Market
         securities including equities and bonds for the               Securities
         Johannesburg Stock Exchange (JSE), and a range
         of derivative products such as warrants, ETFs, retail        The “Golden Source” for corporate events
         notes and tracker funds. In 2010, Strate added the           Introduction of Segregated Depository Accounts
         settlement of money market securities to its portfolio        (Account Operator Model)
         of services.
                                                                      T+3 for Equities
        Strate provides services to Issuers for their investors
                                                                      Bonds system replacement
         in terms of the Companies Act and Securities
         Services Act (SSA), 2004.                                    Long term:
        Assets under custody are in excess of US$ 900                    International links with other CSDs
         billion with over 23 millions trades settled per year            Collaboration with DTCC on various projects
     www.strate.co.za                                                     Retail model for South Africa
                                                                          OTC Derivatives Register
 The Depository Trust & Clearing Corporation (USA)
26
     Brief Profile                                        Marketplace Drivers
        DTCC, through its subsidiaries, provides            Regulatory reform
         clearance, settlement and information               Focus on transparency and risk management
         services for equities, corporate and municipal      Managing systemic risk
         bonds, government and mortgage-backed
                                                             Capital requirements
         securities, money market instruments and
         over-the-counter derivatives. DTCC is also a
                                                          2011 Priorities
         leading processor of mutual funds and
                                                             Radical rethinking of risk management at DTCC
         insurance transactions.
                                                               •  Consolidated risk oversight and “three lines of
        DTCC's depository provides custody and                   defense”
         asset servicing for more than 3.6 million             •  Strengthen operational and systemic risk
                                                                  management functions
         securities issues from the United States and
                                                               •  Mitigate liquidity risk across clearing corporations
         121 other countries/territories, valued at               and depository
         US$36.5 trillion. In 2010, DTCC settled             Transparency and regulatory reporting initiatives:
         nearly US$1.66 quadrillion in securities             Swap Data Repositories, Legal Entity Identifiers
         transactions.                                       New and enhanced products
                                                               •  Corporation Actions enhancements and standards
        DTCC has operating facilities and data                   (20022/XBRL)
         centers in multiple locations in the United           •  Mutual Fund Multicurrency Settlement
         States and overseas.                                  •  New York Portfolio Clearing

     www.dtcc.com
      Market Infrastructure: Who does what? (South America 1)
27
                                    Argentina                Brazil             Uruguay              Venezuela
                             MERVAL (CCP and          BM&FBOVESPA(CCP &   BVM (Clearing)         Caracas Stock
     CCP or Clearing House   Clearing)                CH)                                        Exchange Clearing
                                                      CETIP (CH)
                             CVSA                     BM&FBOVESPA         BVM (Net)              Gross (Equity) /CVV
                             MERVAL uses DVP          (Gross)                                    – Free Of Payment
     Securities Deliveries   system                   CETIP (Gross)                              (Debt)

     (Gross/Net)


                             MERVAL (for stock        BM&FBOVESPA (Net)   BVM (Net)              Net (Equity) /CVV –
     Cash Clearing           market trades)           CETIP (Gross)                              Free Of Payment
                                                                                                 (Debt)
     (Gross/Net)


                             MERVAL (Stock Market     BM&FBOVESPA         BVM (Banco Comercial   Net (Equity) /CVV –
                             Trades) using Banco de   CETIP               and Central Bank of    Free Of Payment
                             Valores, BCRA and                            Uruguay)               (Debt)
     Cash Settlement         other bank accounts.



                             CVSA                     BM&FBOVESPA(CCP &   BVM                    CVV
     CSD                                              CH)
                                                      CETIP (CH)
       Market Infrastructure: Account Model and Settlements
       (South America 1)
28


                                  Argentina                  Brazil                 Uruguay         Venezuela

     Account Structure:      Caja de Valores both      Beneficial Owner   •Omnibus Accounts   Beneficial Owner
     Beneficial Owners or    Participants and          Accounts                               Accounts
     Omnibus Accounts at     Beneficial Owners
     Member Level
     Standard Settlement     T+3 (also available T0,   T+3                T+3
     Cycle for Equities      T+1 and T+2)
                             Merval uses Model 3.      BM&Fbovespa:       Model 3             Model 2 for equities
                                                       Model 2.                               Debt is Free of Payment
                                                       CETIP:
                                                       Bilateral
     BIS DVP Model: Gross-                             Settlement
     Gross (1), Gross –                                Model 1 and 2
     Net(2), Net-Net(3)




                             Yes at the CCP level –    BM&F BOVESPA       YES                 NA
                             Collateral and            Yes
     Collateral and/or       margins required –        CETIP - Triparty
     Guarantee Fund                                    Collateral
                                                       Management
      Market Infrastructure: Who does what? (South America 2)
29
                                   Bolivia                    Colombia                            Chile             Peru
                             Clearing House –    BRC - Colombian Central Bank for           BCS               N/A
                             BCB Bolivian Bank   government securities- NO CCP,             CCLV (2010)
     CCP or Clearing House   Central             Colombia CCP for Derivatives, BVC
                                                 for Equity
                             EDV - Gross         DECEVAL (Gross DVP for Fixed               CCP (CCLV)-Net;   CAVALI - Gross
                                                 Income, Securities Leg for Equity.         DCV-Gross
     Securities Deliveries                       DVP; DVD and PVP)
                                                 DCV – Central Bank Depository
     (Gross/Net)                                 (gross and net for government
                                                 securities)

                             EDV - Net           BRC – The Colombia Central Bank)           BCS – Net         CAVALI (Net)
     Cash Clearing                               BVC – Net cash for Equities using          CCLV (2010)-Net
                                                 the central bank payment system
                                                 DECEVAL – gross cash using the
     (Gross/Net)
                                                 Central Bank system

                             Settlement of       DECEVAL, BVC, CCP using the                Combanc           CAVALI (Net)
                             funds through the   Colombian Central Bank payment             Central Bank
                             Central Bank of     system
     Cash Settlement         Bolivia-BCB



                             EDV                 DECEVAL - beneficial owner system Gross    DCV               CAVALI
                                                 – DVP; DVD; PVP systems . All securities
     CSD                                         DCV (only for government debt ) (Gross)
       Market Infrastructure: Account Model and Settlements
       ( South America 2)
30


                                 Bolivia                 Colombia                         Chile                        Peru

                             Beneficial         •Beneficial Owners. More        Mixed Omnibus              Beneficial Owners (local)
     Account Structure:
                             Owners (local)     than 700 thousand accounts      account- with the          Omnibus accounts
     Beneficial Owners or
                                                •Omnibus accounts for           possibility to open a      (MILA)
     Omnibus Accounts at
                                                market Integration              beneficial owners
     Member Level
                                                                                account
     Standard Settlement     T+0 to T+3         T+3                             T+2                        T+3
     Cycle for Equities
                             Model 2 DVP -      Model (1), Irrevocable          Bilateral settlement (1–   DVP Model 2
                             BIS                settlement of funds and         2)                         (DVP Model 2 provides for
                             (At the end of     securities with payment                                    gross settlements of securities
                                                                                                           transfers followed by net
                             the cycle, gross   exchange on line on both        Multilateral settlement    settlement of funds transfers.)
     BIS DVP Model: Gross-   settlement and     depositories – Deceval and      (3)
     Gross (1), Gross –      net value of       DCV – Automatic debit
     Net(2), Net-Net(3)      funds)             accounts payments
                                                Model 2, for equities
                                                administered by BVC –The
                                                Colombian Stock Exchange
                                                Model 3 – CCP for derivatives

                             Guarantee Fund     •Yes at the CCP level –         Yes, for collateral        Participants contribute
                             administered by    Collateral and margins          services                   for a Settling Fund
     Collateral and/or       the EDV            •BVC – Collateral posted for                               managed by CAVALI
     Guarantee Fund                             securities transactions like
                                                repos, securities lending,
                                                others
      Market Infrastructure: Who does what? (Central America)
31
                               Ecuador   El Salvador   Guatemala           Nicaragua             Panama
                             NA          NA            NA             NA                    NA
     CCP or Clearing House

                             DECEVALE    CEDEVALE      CVN            CENIVAL               LATIN CLEAR
     Securities Deliveries   DCV- BCE    (Gross)       (Gross)        (Gross)               (Gross)
                             (Gross)
     (Gross/Net)


                             DECEVALE    CEDEVALE      CVN            NA                    LATIN CLEAR
     Cash Clearing           DCV         (Net)         (Gross)                              (Net)
                             (NET
     (Gross/Net)


                             Banco       BVES,         Central Bank   Participants settle   Banco Nacional
                             Central     Banco                        among                 de Panamá
                                         Central de                   themselves
     Cash Settlement                     Reserva
                                         (Central
                                         Bank)

                             DECEVALE    CEDEVALE      CVN            CENIVAL               LATIN CLEAR
     CSD                     DCV
       Market Infrastructure: Account Model and Settlements
       (Central America)
32

                                 Ecuador       El Salvador           Guatemala             Nicaragua          Panama

                            Beneficial        Beneficial        Omnibus Accounts     Omnibus Accounts   Omnibus Accounts
     Account Structure:     Owner Account     Owner Account
     Beneficial Owners      Model             Model
     or Omnibus
     Accounts at
     Member Level

     Standard Sett Cycle    T+3               T+3               T+3                  T+3                T+3
     for Equities
                            Model 2 : Gross   Model 2 : Gross   Model 1: Gross       NA                 Model 2 : Gross
                            Securities        Securities        Securities – Gross                      Securities
     BIS DVP Model:         Net Cash          Net Cash          Cash                                    Net Cash
     Gross-Gross (1),
     Gross – Net(2), Net-
     Net(3)



                            NA                NA                NA                   NA                 NA

     Collateral and/or
     Guarantee Fund
 Market Infrastructure: Who does what?
 (The Caribbean)
33

                                                                 Eastern                           Trinidad &
                           Barbados           Dom. Rep                             Jamaica
                                                                Caribbean                            Tobago
                       BCSDI                CEVALDOM                        Jamaica Central      TTCD
     CCP or Clearing
                                                                            Securities
     House                                                                  Depository (JCSD)
                       BCSDI                GROSS                           Securities are       TTCD
     Securities                                                             settled gross
     Deliveries                                                             within JCSD

     (Gross/Net)

                       BCSDI                GROSS                                                TTCD
     Cash Clearing

     (Gross/Net)


                       BCSDI through RTGS   CEVALDOM                        Funds are settled    Central Bank of
                       account with the     Through Central                 net within Central   Trinidad and
                       Central Bank of      Bank                            Bank                 Tobago
     Cash Settlement   Barbados                                                                   (CBTT)



                       BCSDI                CEVALDOM          ECCSD         JCSD                 TTCD
     CSD
       Market Infrastructure: Account Model and Settlements
       (The Caribbean)
34

                                                  Dom.              Eastern                               Trinidad &
                              Barbados                                               Jamaica
                                                 Republic          Caribbean                                Tobago
                            Beneficial        Beneficial       Omnibus         Beneficial Owners    Beneficial Owners
     Account Structure:     Owners            Owners           Accounts
     Beneficial Owners
     or Omnibus
     Accounts at
     Member Level

                            T+3               DO NOT TRADING                   T+3                  T+3
     Standard Sett Cycle
                                              EQUITIES.
     for Equities

                            Model 2 : Gross   Model I                          DVP Model 2          Gross-Net (2)
                            Securities        GROSS- GROSS

     BIS DVP Model:         Net Cash
     Gross-Gross (1),
     Gross – Net(2), Net-
     Net(3)



                            YES               NO                               Yes, maintained by   Yes
                                                                               JSE
     Collateral and/or
     Guarantee Fund
 Market Infrastructure: Who does what?
 (North America & South Africa)
35

                                Canada         Mexico             United States                      South Africa
                             CDS              CCV         DTCC’s NSCC & FICC                  No CCP in SA, Strate clearing
     CCP or Clearing House                                                                    house for Bonds.

                             Net per issue    Indeval     NSCC & FICC - Net per issue         Strate:
                             for (exchange)   Gross/Net   DTC - Gross                         Equities – Net/Net
     Securities Deliveries
                             CNS trades;                                                      Bonds – Gross/Net
                             Gross for OTC,                                                   MM – Gross/Gross
     (Gross/Net)             money market,                                                         (Securities / cash)
                             institutional
                             CDS (Net per     Indeval     NSCC: Net-net per participant.      As above
                             participant)     Gross/Net   DTC Net-net per participant, then
     Cash Clearing                                        cross-endorses with NSCC.
                                                          FICC settles net per securities
     (Gross/Net)                                          settlement.


                             CDS, using       Indeval     DTC end-of-day net                  South African Reserve Bank
                             Settlement       Gross/Net   via Settlement Banks & Fed’s        – cash settlement in Central
                             Banks and its                National Settlement/Fedwire.        Bank funds
     Cash Settlement         Central Bank                 NSCC via DTC’s single settlement
                             Account                      system. FICC via Fed Clearing
                                                          Banks & Fedwire.

                             CDS              Indeval     DTC                                 Strate Ltd
     CSD                                                  Federal Reserve
       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
     Account Structure:                                                                                           bonds and beneficial
     Beneficial Owners or                                                                                         ownership for money
     Omnibus Accounts at                                                                                          market securities
     Member Level


     Standard Sett Cycle for      T+3                   T+3                     T+3                               T+5
     Equities
                                  BIS model 2           DVP Model 1 and DVP     DTC is DVP Model2                 Equities – Model 3
                                  Irrevocable           Model 3                 (DVP Model 2 provides for gross   Bonds – Model 2 and 3
                                  settlement of funds                           settlements of securities         (based on settlement run)
                                                                                transfers followed by net
                                  and securities with                           settlement of funds transfers.)
                                                                                                                  Money Market Securities –
     BIS DVP Model: Gross-
                                  payment exchange                                                                Model 1
     Gross (1), Gross – Net(2),
                                  at the end of day
     Net-Net(3)
                                  based on
                                  participants
                                  established line of
                                  credit.
                                  Extender of credit    Indeval: Participants   DTC: U.S .cash Participants       Yes by the Stock Exchange
                                  arrangement,          settlement fund         Fund.                             for certain on market
     Collateral and/or            participant funds     CCV: Clearing Fund      NSCC: U.S .cash & U.S.            equity and bond
     Guarantee Fund               and Aggregate                                 Treasury and Agency               transactions only
                                  Collateral Value                              securities .

				
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