The focus of the area has been positive. Between (January and August) 2015, 7 new clients have subscribed to the service, who have the support and infrastructure provided by DCV for the custody of securities abroad. The challenge for the remaining part of the year is important as the area expects to incorporate a total of 10 new clients in 2015.

The arrival of new participants and the consolidation of clients also meant that the international custody volume registered significant increases.  At the close of August 2015, the figure amounted to a total of USD 11834 billion, this is, a 34.3% increase relative to August 2014.

NEW SERVICES

During this year, the International Custody service has delivered significant releases tending to fulfil its commitment to provide the necessary infrastructure to deliver a quality service to participants and be a relevant actor in innovations for the capital market.

Javier Jara, Manager of Business and Legal Affairs, explained that one of the releases was the beginning of the service for the transaction and cash settlement of foreign securities traded in the Foreign Securities Market, allowing all local investors to invest in foreign securities directly in the national stock exchanges as if they were securities issued by Chilean issuers. In this case, DCV facilitates the settlement of the transactions performed in those securities through the accounts annotation system maintained by DCV, in addition to providing custody for these securities abroad and the information on the capital events related to these securities. 

Another relevant milestone was the implementation of the custody service of Canadian securities to be traded in the so-called Venture Market, released by the Santiago Stock Exchange, which to date already has over nine share issues listed in this market.

WHAT IS COMING

In May, DCV took a new step toward the development of the Latin American Integrated Market (MILA) with the implementation of the DVP (Delivery versus Payment) settlement choice for participants to perform purchase and sale operations with securities in the Mexican market.

Javier Jara stated that the opportunities for investors in MILA will continue in the coming weeks as the Peruvian market will join this new settlement alternative intended to promote the development of this integrated market.  Without question, the above will bring benefits in terms of reducing the risks associated to settlement and improving the standards for operations in the context of MILA.

“At DCV we expect to soon provide other services to participants operating with DCV International Custody – through the alliance with Euroclear -, specifically accessing the Loan of Securities and Collateral programs”, said the executive. 

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