Circular letter Nº 211"New instruments in the foreign securities registries of the Superintendence of Securities and Insurance (S.V.S.)"

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

Dear
Participant

Depósito Central de Valores advises participants that the following instruments (shares) have been listed in the Foreign Securities Registries of the Superintendence of Securities and Insurance (S.V.S.), which as of  May 24,2012 may be traded locally in the Foreign Securities Stock Market in accordance with Title XXIV of the Law 18.045 and supplementary rules issued by the SVS.  

In the context of the Foreign Securities Stock Market Service, DCV will offer custody services for these securities and register of the transactions carried out with these instruments, on the basis of the agreement held with Deutsche Bank, the entity which through Deutsche Securities Corredores de Bolsa Limitada, has sponsored the listing of these new foreign instruments.

We remind our Participants the way to operate with foreign securities as well as the regulation governing this service, and we clarify that the operational model will be equivalent to the one currently in force for ETFs that are traded in the Foreign Securities Stock Market today.

This way:

1. Participants who wish to utilize to the Custody Service of Foreign Securities Market registered in the SVS’s Foreign Securities Registry must sign the Annex to the Depository Contract titled International Custody Annex.

The rates for this service will be equal for all Participants and provided to those wishing to contract the service, and who shall subscribe them as a sign of acceptance.

 

2. The foreign securities in custody at DCV will be deposited in the Participant’s valid position accounts, and identified through the instrument’s respective code.

 

3. The settlement of the transactions with foreign securities in the Chilean market will be carried out under the same modality applied for operations with national securities, which is settlement between counterparties or bilateral settlement.

 

Therefore, the Stock Exchanges will send a file with the corresponding operations and their settlement of cash to DCV each day, this will be carried out bilaterally between the stockbrokers of the Stock Exchange which are part of the respective transaction, in US dollars, as detailed in the in the Operating Manual of the Securities Market of the corresponding Stock Exchanges.  

4. The trading of these securities in the foreign market will be carried out by the Participants and reported to DCV through the International Operations Registration Form (FROI).

 

5. Proprietary rights ordained by the issuing entities over securities kept on deposit will be subject to the operational practices in force in DCV.

 

6.  DCV will offer the final beneficiaries of the securities (through the participant) who wish to obtain a lower interest retention rate  over the payment of dividends to collect the W-8IMY (case of intermediaries), W-8BEN (final beneficiaries) or W-9 (in the case of American citizens) forms, accordingly, in original and properly completed, in order to submit them to the International Custodian. 

 

By no means shall the above imply that DCV will be liable for the fiscal results applicable by the Foreign Custodian or Retention Agent, nor will it be its responsibility to provide tax advice of any kind. Participants and investors must be aware of the conditions of the markets in which they operate. The forms and communications may be reviewed and obtained from the IRS Website of the USA. 

 

7. The details and particulars of the service offered by DCV are contained in the document “International Custody Service Operation Guide”, a copy of which may be downloaded from this circular.

Download International Custody Service Operation Guide (Spanish only)

Sincerely yours,