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| Circular | Anexx | Date | Reference | Status | Download |
| 326 | Yes | 11.15.2019 | Settlement of purchase and sale transactions executed with the Central Bank of Chile | Valid | Yes |
DEPÓSITO CENTRAL DE VALORES S.A.,
DEPÓSITO DE VALORES
Dear Participants,
In accordance with Circular Letter No. 625 and the Press Release, both of the Central Bank of Chile (BCCH), dated November 14th, 2019, DCV informs its Depositors of the start of the settlement of operations method through the LBTR System, and its adherence to the rules of the Issuing Institute to act as a “Third Party” in the settlement of the aforementioned operations. This will allow the synchronization of the transfer of securities with the transfer of funds between the BCCH and its counterparties.
This role will be limited to operations in which the BCCH participates as a purchaser of the securities issued by it.
For the purpose of fulfilling this role, DCV must have an authorization from the respective seller of securities (of its own issuance) regarding which the BCCH acquires in accordance with its regulations. This authorization must expressly authorize the latter to send transfer instructions (of the respective debt instruments) to DCV (which will act on behalf of the Depositor). Therefore, allowing the settlement of the aforementioned purchase transactions, which currently correspond to the special mandate called “Special mandate to act before the Central Bank of Chile in purchase transactions regarding instruments of its issuance”, included in this circular.
We briefly describe the new process:
Once the purchase of securities issued by the BCCH has been awarded in accordance with its regulations, the Issuing Institute instructs DCV to charge the securities depository account of the respective awarding depositing institution, prior payment (in a gross amount) of the relevant transaction. For this purpose, the implementation by the Issuing Institute of a “settlement account 2” in the LBTR System is contemplated.
It is important to note that DCV will in no case have the power to send instructions for transferring funds in the LBTR System on its own behalf, nor will it carry out clearing and settlement of operations, but will limit itself to remitting, as the representative of the BCCH for these purposes, certain funds transfer instructions (ITF), when acting on behalf of the Central Bank.
Download service operations guide
international custody
Special mandate to act before the Central Bank of Chile regarding debt
instruments of its own issuance.
For more information please contact the
MAC Customer Service Desk
Sincerely,
DEPÓSITO CENTRAL DE VALORES S.A.,
DEPÓSITO DE VALORES
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