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) 3 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) 5 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) 6 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) 7 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) 8 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) 10 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) 11 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 ) 12 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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