Post on 27-Dec-2015
International SeminarInternational Seminar Punta del Este – Uruguay Punta del Este – Uruguay
October 26 – 28, 2005 October 26 – 28, 2005
Experience and performance of different Experience and performance of different structures among organizations that trade, structures among organizations that trade,
deposit and settle securitiesdeposit and settle securities
Luis María CorsigliaCaja de Valores - Argentina
CAJA DE VALORESCAJA DE VALORES
Central DepositoryCentral DepositoryOf SecuritiesOf Securities
Structure Structure of the Argentine Securities Marketof the Argentine Securities Market
Stock Exchange
SecuritiesMarket
Ministry of FinanceComisión Nacional de Valores
Regulator
•Deposit
•Custody
•Registry
•Systems
•Auhorization to quote
•Prices
•Release of information
•Stock brokers and Brokerage houses
•Trading
•Settlement
InstitutionalMarket
Banco de Valores
Banco Centralde la
Rep. ArgentinaCRYL
Futures and options Markets
MATBA-ROFEX
OTC
MAE
LocalExchanges and
Markets
Securities Market ResponsibilitiesSecurities Market Responsibilities
Financing source of companies and government
Savings Guide in productive activities
Generator of liquid investments
Fuel for economic development of the country
Buenos Aires Stock Exchange Mercado Abierto Electrónico (OTC) Mercado de Valores de Buenos Aires Caja de Valores S.A. MATBA – ROFEX Provincial Exchanges and Markets Regulator:
Comisión Nacional de Valores
Institutions of the Capital MarketInstitutions of the Capital Market
BCBABCBA
MAEMAE
MATBAMATBA
ROFEXROFEX
MERVALMERVAL
Provincial Provincial MarketsMarkets
C N VC N V
CVSACVSA
Buenos Aires Stock ExchangeBuenos Aires Stock Exchange Non-profit civil association, created in 1854, with 5,800 associates;
its Board Council gathers representatives of the different sectors
of the economy
Responsibilities
Enacts regulations for the quotation and authorizes, suspends and interrupts
quotations in accordance with such regulations, as it supervises their fulfillment
Enacts rules and measures to ensure veracity of balance sheets and other
documents of listed companies, to whom it also inspects
Keeps registry of trades and prices, ensures accuracy of such registries and daily
publishes everything related thereof
Publishes financial states of listed companies and releases material information
Mercado de Valores de Buenos Mercado de Valores de Buenos Aires Aires
Self-regulated corporation, with 183 shares of networth that
empower holders to act as brokers or brokerage houses.
Currently there are 127 operating companies. Last price of
Merval share
$ 2,150,000 (March, 2005).
Responsibilities
Execution, settlement, surveillance and guarantee of trades
Empowered to supervise and take disciplinary measures on brokers
and brokerage houses
Regulates, coordinates and carries out all aspects related to trading
of securities, types of securities and trading, payment conditions, etc.
CAJA DE VALORES S.A.CAJA DE VALORES S.A.
Central Securities Central Securities Depository Depository
A corporation whose shareholders are BCBA,
MERVAL and local Exchanges and Markets, created
in 1974.
Collective DepositCollective Deposit
DepositorDepositor
Subaccount
Subaccount
Subaccount
Subaccount
Depositor
Subaccount
Subaccount
DEPOSITORS CAN BE:
•Stock Brokers and OTC brokers
•Stock Markets
•Banks and Financial companies
•Depository companies of FCI
•Global Custodians
HOLDERS OF SUB-ACCOUNTS ARE:
•Investors (individuals or companies)
Remote opening of Sub-accounts “Holders” through the System from the Depositors’ offices
Servicies of Issue of Holding and Meetings Certificates Information to Depositors: daily listing, on-line customer
service
Delivery of quarterly statements by mail Report of balances of holders accounts and movements during the last quarter
Statements Feedback 1st. Mark to the sub-account 2nd. Blocking of sub-account
Other blocking Legal order: embargo of some/every security
(Securities in Guarantee) Economic rights on securities: pledge Special blocking
Mark
Aspects of holders accountsAspects of holders accounts
BlockingSub-account
Depositors AccountsDepositors AccountsTotal 604
Sub-accounts opened October ´05 2.879.661 Balanced 708.529 Unbalance 2.171.132
Delivery of quarterly statements by mail Report with holders accounts balances and operations
carried out during the last quarter
Cuentas ComitentesCuentas Comitentes55%
3%
27%9%
6%
Brokers
Financial Cos.
Banks (162)
Mutual Funds (57)
Others (37)
CustodyCustody
Public Securities Caja de Valores 32,607 Euroclear 8,617 Clearstream 4,495 DTC 1,886 CRYL 111,167
SUBTOTAL 158,773TOTAL CUSTODY V$N 174,378TOTAL CUSTODY V$N 174,378
(in millions)
Securities Securities under under
Custody as of Custody as of October ´05October ´05
The first physical security was sent by Canale S.A. in 1977 and the first escritural security was received in 1988 by Banco de Suquía.
An important process of physical securities conversion into book-entry securities took place. Currently less than 2% of securities under custody are physical.
Technology Developments: Filing of orders/Electronic Matching/
Dissemination/Settlement/Clearing/Custody
Lines of BusinessLines of Business
Issuers Services Depositors and investorsservices
Joint Deposit+
Asset servicing
Numbering Agent
Payment Agent
Registrar
Exchange Agent
Closing of trades
Trust Agent
Underwritting Agent
Caja de Valores as Trust AgentCaja de Valores as Trust Agent Related to assets in trust:
To keep them segregated from their own and mantein them Honour tax burdens thereof After agreement maturity, transfer them in accordance to agreement’s
provisions
Management of assets in trust, for third parties benefits (beneficiaries)
Some trusts in which Caja de Valores acts as trustee: Guarantee trust of Secured Loans. CCF trust, authorized for tax cancellation. Trust for Scotiabank selling transaction.
Types of TradingTypes of Trading
Floor: Outcry trading Outcry trading
The offer includes security, amount and price
Electronic trading
SINAC – computarized electronic trading system -
Participants send offers and these are matched on the system, are filed
and reflected for all the traders
Concurrence: combines both mechanisms for pricing
Continuous Trading: for cash and term wholesale trades
Outcry TradingOutcry Trading
Buy-sell Offer
Security - Price – Amount
(outcry)
Acceptance of Offer
(outcry)
Ticket issue For Buyers, Seller and Exchange Kiosk
Physical area for execution:
STOCK EXCHANGE TRADING FLOOR
Electronic TradingElectronic Trading
SINACComputarized Trading
System
Data disseminationPrice – Volume - Offers
Transfer of ordersConfirmation &
Identification of Trades
Transfer of ordersConfirmation &Identification of Trades
Trader A Trader B
Exchange IT
The automated trading system (SINAC) follows specifications of the
European exchanges federation.
The settlement system has been designed under G30 recommendations
and IOSCO reports, honours every requirement of CNV and specialized
international entities.
The guarantee management system allows for the integral
management of guarantees required by futures trading: forwards, options,
loans, short sells, repos.
The custody system handles holders sub-accounts and the operating
system of electronic transfers of securities follows IT safety rules required
by international organizations.
International standards on everyphase of the exchange operating
system
Exchange IT
Systems integration: Main factor for risk management
Securities Trading
Trading Registration
On-line dissemination
Markets Supervision
Guarantees management
Trades settlement
Securities Custody
Negotiable Securities
The Exchange System manages
securities quotes in different
monedas (dollars, marcs, etc.).
The trading currencies are
pesos or dollars.
Securities:
Shares
Public Bonds
Negotiable Obligations
ADRs(American Depositary Receipts
CEDEARs
Forwards
Over 5.000 securities
Cash Trades
Systems are designed for the settlement of trades during the day. Currently trades are settled on T+3.
Term trades Forward Repos – Loan Options Indexes term Securities in Loan
IT NetworksIT Networks
Point-to-point private links with all brokers and brokerage houses of the market.
Point-to-point private links with regulators, investors, depositors, news agencies and financial institutions.
Inter-connection of local networks of exchange entities through an optic fiber structure.
Access to Internet of high capacity with double point connection in order to ensure continuous servicing in case of failures.
Internet high-speed communication for every Broker (this is used for access IT services in case of point-to-point link interruption).
Wireless networks at BASE floor, through which brokers may access on-line information, receive orders from their offices or from investors, close automated trades, access e-mail services, chat and Internet.
The country’s largest private virtual network
Data ProcessingData Processing
Technology Platforms of last generation.
Two data processing centers:
Main CenterMain Center, with high-capacity processing and high-availability configuration. It is used exclusively to render IT services.
Alternate CenterAlternate Center, regularly used to carry out maintenance tasks and systems development. Ensures continuous servicing, re-starting processes at the main center in case of contingencies.
Data base replicated at both computer centers, simultaneously updated on-line.
180.000 trades/day2,800 users
New marketsNew markets
Electronic Gas Market (MEG): determines the new trading of SPOT gas (gas for that day).
Executive Power Decree 180/05 MEGSA (corporation created by the Buenos Aires
Stock Exchange).
Trading mechanisms: PIST: trading of gas at well point Citygate: trading of gas plus transportation at delivery point
First stage (achieved): PIST mechanism Includes trading, dissemination, transportation authorization,
filing and settlement
Automated SignatureAutomated Signature
CVSA is the digital certification agent for users of the exchange IT systems.
Systems developed by CVSA allow for the authentification of users and for electronic signature of large-volume trades.
Technology used is based in RSA algorithms with asymetric keys of large size.
Data exchanged between central systems and workstations are enclypted by applying keys that are dynamically modified.
Consequently, users may consult holdings under custody and execute securities transfers from their offices within a safe framework.
IT Safety
Some of our 2004-05 Some of our 2004-05 achievementsachievements
CAJA DE VALORES SA: main clearing agent in the most significant Exchange of Public Debt in history
As regards volume of issue, diversity of securities, amount of currencies and different legislations of issues for the so-called Eligible Debt
Underwritting of an agreement with ANSSES targetted to the filing of holders of PRE8 bonds
Opening of reciprocal accounts between CVSA and CBLC (Brazil) Start-up of negotiations with DCV (Chile) and INDEVAL (Mexico) within the
framework of Federación Iberoamericana de Bolsas de Valores (FIAB) recommendations
Final approval of SEPYME for Garantía de Valores SGR operation The activities are targetted to the granting of guarantees for small and
medium-sized companies financing Certification based on ISO 9001-2000 standard, granted by Det
Norske Veritas In the processes of Customer Services at Headquarters and Users Services
Center.
Garantía de Valores SGRGarantía de Valores SGR
In 2003, Caja de Valores promoted the creation of a reciprocal guarantee corporation
Currently it is comprised by over 190 partners representing brokers and brokerage houses of the country and small and medium-sized companies of a diversity of productive sectors
Risk fund of $30 millions Its main target is to grant guarantees to undertakings of its partners
with the purpose of fuelling the development of small and medium-sized companies and promoting new business lines within the capital market structure
To guarantee trades of Diferred Payment Checks Discount on BASE, bank intermediation, negotiable obligations and financial trusts, among others.
International ScopeInternational Scope ANNA
Attendance to Meetings Extraordinary Meeting, Tunisia – Dec. 2004, delegating
powers on Chile and Panama. Ordinary Meeting, Zurich – June 2005, delegating powers on
Chile, Costa Rica, Panama and Venezuela.
Member of ANNA Service Bureau Advisory Board (ASB AB)
The ASB AB is the committee in charge of ASB management, technical body of ANNA that consolidates all ISINs of every National Numbering Agency (ANN) of the world, making them available to the market.
We were appointed members of AB, for a 3-year term, at the Ordinary Meeting held in Zurich, June 2005.
We took part of ASB AB meeting held in Brussels on July 2005.
International ScopeInternational Scope ANNA (cont.)
Leader of ANNA Latinoamericana (ANNA L.A.) project
The project consists in the creation of a task group of the region’s ANNs, coordinated by a regional management, aimed at promoting the best practices on services for securities exchange codes allotment, under ANNA regulations.
We invited Brazil, Chile*, Costa Rica*, Mexico*, Panama*, Peru and Venezuela* to be part of this undertaking
(*) Already formally informed ANNA Board of their cooperation with the project.(Note: El Salvador, that recently gave its consent to be a “partner” of ANNA, shall be contacted soon).
International ScopeInternational Scope
Letters of Intent with:
CAVALI - Peru
DECEVAL – Chile
Start-up of negotiations with:
INDEVAL - Mexico
Operating:
CVSA-CBLC Reciprocal accounts
(fully operating)
Accounts opened at:DTCC – As direct participant
Iberclear - Euroclear – Clearstream
Securities Transfers Securities Transfers
Dividends Payment in pesos, dollars and eurosDividends Payment in pesos, dollars and euros
Political and economic rights Political and economic rights
Of investors’ securities deposited in foreign marketsOf investors’ securities deposited in foreign markets
(Meetings and votes by shares and negotiable obligations)(Meetings and votes by shares and negotiable obligations)
Luis M. Corsiglia
corsiglia@cajval.sba.com.ar
www.cajval.sba.com.ar