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Circular Letter N° 312
Circular Letter Annex Date Reference Status Download
312 NO 12-06-2017 Settlement of transactions indicated below with BCCH Valid NO

DEPÓSITO CENTRAL DE VALORES S.A.,
DEPÓSITO DE VALORES

Dear participants

The Central Bank of Chile (BCCH), within its project to improve the technological platform of the SOMA System, contemplates the participation of DCV in the future as a “Third Party” in the Real Time Gross Settlement System of BCCH (RTGS system) for the settlement of definitive purchase transactions for debt instruments issued by it. The preceding, shall be made for redemption purposes, in accordance with the provisions published by BCCH on November 8th, 2017 in the Official Gazette.

Specifically, these changes are contained in the relevant part of Section II of Chapter 1.2 of its Compendium of Monetary and Financial Regulations (CNMF), and Chapter III.H.4 of the Compendium of Financial Regulations (CNF), whose entry into force shall be timely communicated by this Institution.

In respect to the preceding, DCV informs its Depositors on the implementation -once the aforementioned regulations become effective and once BCCH instructs so- of the settlement of operations through the RTGS System, and its adherence to the rules of the Institution to act as a “Third Party” in the settlement of the aforementioned operations, allowing to synchronize the transfers of securities with the transfers of funds between BCCH and its counterparties.

This role will be limited to operations where BCCH participates as purchaser of the securities issued by it.

In fulfilling its role as a “Third Party”, DCV must be expressly authorized by the respective seller of the securities issued by BCCH to send instructions for the transfer of the respective debt instruments to DCV on behalf of the Depositor, in order to allow the settlement of the purchase already indicated transactions. The authorization is currently contained in the mandate entitled “Special mandate to act before the Central Bank of Chile regarding purchases by the latter of debt instruments issued by it.”

Finally, it is important to note that DCV will not have the power to send instructions for the transfer of funds in the RTGS System on its own behalf, nor will it be able to settle or set-off transactions, but it will be limited to send, as BCBC’s agent for these purposes, certain instructions for the transfer of funds (ITF) of the Central Bank.

We hope to provide more details on this procedure and its entry into force as soon as possible. For more information, we recommend checking the regulations published by BCCH and its temporary provisions mentioned above.

For more information, please contact the MAC Customer Service Desk This email address is being protected from spambots. You need JavaScript enabled to view it. or call +56 223 939 001

Sincerely yours,

DEPÓSITO CENTRAL DE VALORES S.A.,
DEPÓSITO DE VALORES