"Including Citi as part of our infrastructure allows us to access more markets," explains Claudio Garín, Business and Customer Experience Manager at DCV.

DCV became part of the regional custodians' system in a partnership with Citi Securities Services, one of Latin America's main service providers for securities depositories (CSDs).

Over the last seven years, Citi has played a key role in supporting crossed-listing programs of the CSDs in the main markets, including Brazil, Mexico, Chile, Colombia, Peru, and El Salvador, promoting intermediation activity in national capital markets and access to global securities.

DCV became part of this network, and Citi Securities Services will become an international securities custodian for the local market. The transition of the financial instruments took place successfully on May 26.

Through the large global network of Citi that comprises more than 100 markets, DCV will be able to provide its depositors more and better access to the global market. The extended relationship will allow the clients of DCV and its direct participants to leverage new services from segregated accounts, FED settlement, transactions clearing (intermediation), tax services (qualified intermediary), and American mutual funds investments.

"Including Citi as part of our Cross-border Custody infrastructure provides us access to more markets and broadens our value-added services offering for our clients. We also expect to achieve important short- and mid-term efficiencies through automated processes (STP) which translate into expediency, lower operational burden, and reduce potential errors," says Claudio Garín, Business and Customer Experience Manager at DCV.

"Expanding the relationship between Citi and DCV reflects the commitment of more than 30 years of Citi with the Latin American region and our experience in creating solutions to address the needs of central securities depositories," claims Ricardo Hesse, Director of Securities Services of Citi for Latin America.

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The World Forum Conference of Central Securities Depositories (WFC) takes place every two years and gathers the world's most important players of the market.

In the meeting, the most important topics for the securities industry (CSDs) in the world are discussed, and it is organized by the World Forum Conference of Central Securities Depositories (WFC). This year the meeting was held from May 24 to 26 in  Prague, with representatives from the regional associations of depositories from Asia Pacific, America, Africa and the Middle East, Europe, and Central Eurasia, as well as regulators and other capital market actors.

Guillermo Tagle, Chair of the Board, Rodrigo Roblero, General Manager, and Javier Jara, Legal and Corporate Affairs Manager, attended the meeting representing Depósito Central de Valores (DCV).

The meeting aims to provide an instance to cooperate and discuss the most important topics for the industry with different leaders of Central Securities Depositories, regulators, central banks, international banks, local authorities, and custodians from around the world.  

"It is very important to participate in international events to stay current with world trends and provide the best service to our clients." One of our objectives is to look for new businesses and innovation," explained Guillermo Tagle.

Rodrigo Roblero added, "Depositories all over the world must exchange experiences to face the industry's challenges and become better prepared for the new needs of our clients."

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Javier Jara said, "It was interesting to see the business development experiences the different countries are promoting to develop their securities markets.

The topics addressed in the WFC included the facilitation of cross-border investment flows, learned experiences and the challenges of the DLT technology in pilot programs developed by FMIs, settlement processes efficiency, global post-trade vision, and the systemic risk in post-trade.

"Clearly, the experience of being part of this event has been useful to understand the challenges that the industry to which DCV belongs is facing, notwithstanding the great challenges that we have at a local level," concluded Roberto.

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Market leaders analyze the path traveled by the industry over the
last three decades

Chile's GDP grew 5.3% in 1993 when President Eduardo Frei Ruiz-Tagle took office; José Antonio Guzmán was President of  CPC, and the well-known economist Roberto Zhaler led the Central Bank. That year, when the legal age changed from 21 to 18 in Chile, Depósito Central de Valores (DCV) was created due to one of the greatest digital transformations experienced by the Chilean capital market, with the clear mission of receiving public offering securities deposits and facilitating their transfer through a register system model. All this under the highest transparency, security, and efficiency standards.

Fernando Massú

The capital market that DCV has served has undergone significant changes over the last three decades while the company continued its development process to move along with it. Fernando Massú, President of BTG, highlights some of these changes: "The growth of the market (in terms of size and strength) by incorporating financial institutions other than banks that can compete in the savings and loans arena. Currently, people and companies obtain funds from sources other than banks, such as insurance companies, department stores, compensation funds, factoring companies, and leasing companies, to mention a few. Local banking funds approximately 50% of the companies needs, and around 70% for people."

María Eugenia Norambuena

María Eugenia Norambuena, General Manager of Principal AGF, states that the market's growth is strongly related to its regulatory framework. "The main milestone of these 30 years has been the development of a sophisticated regulatory framework for the financial system, which has allowed for its growth providing safe conditions to those that use its benefits, such as savers and investors." Massú points out other significant breakthroughs. "The creation of products such as the RUT account (bank account provided with a Taxpayer ID number), debit cards, and credit cards have promoted banking usage within a large part of the Chilean population. The savings kept in AFPs and life insurance companies provided access to loans and mortgage loans under excellent conditions to a great part of the population."

María José Montero

Challenges

Regarding future challenges, the Director of the Chilean Association of Investment Funds Administrators, María José Montero, says that "it seems evident that we must make sure to protect a growing and transparent capital market that operates efficiently playing its role in the economy by mobilizing savings and providing liquidity to promote an emerging economy. It is also imperative to move towards a more sustainable financial market: We have the opportunity to play a more active role in solving the social and environmental challenges we face globally." María Eugenia Norambuena addresses the same issue: "The challenge is to educate people on the business to see that they can leverage all the advantages and opportunities that we provide as a sector for the lives of Chileans."

Juan Carlos Chomalí

Juan Carlos Chomalí, President of AFP Capital, adds, "it is key to protect the institutionality for the financial market to continue growing and supporting the development of the Chilean population." 

"DCV continues providing trust and transparency in the custody and settlement of securities, creating new ways of helping our clients with their challenges."
Rodrigo Roblero Arriagada.

In this context and after three decades of providing services to the local financial system, DCV intends to continue being a key player in supporting the market. The digital transformation process that started with the creation of DCV has continued. Recently, this company strengthened its technology infrastructure by deploying a world-class platform. "DCV, in its role as a supplier of sound infrastructure for the development of the market, will continue contributing with trust and transparency in the custody and settlement of securities, creating new ways of helping our clients with their challenges and the different upgrades promoted in the market," states  Rodrigo Roblero Arriagada, CEO of the Company.

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"It is about digital transformation, innovation, risk management, and the continuous improvement of the business platform," said Rodrigo Roblero, General Manager of DCV.

As every year, the depositors of Depósito Central de Valores (DCV) got together to hold the XXVII Depositors' Meeting. With the presence of the Surveillance Committee and its participants, Rodrigo Roblero Arriagada, General Manager of DCV, took the opportunity to present four lines of work in which the Company will place its efforts for the 2023-2024 period. 

In 2022, the Company's efforts were placed in the new DCV Evolution (DCVe) platform, which is excellent leverage for developing the Company and the capital market. "We have taken a step forward in technology transformation and are currently seeing good results in terms of stability and processing times. However, in 2023 our main focus is to continue strengthening our services even more," said Mr. Roblero.

This way, our work focuses on continuously improving the DCV Evolution business platform. "After the successful go-live, we must continue strengthening and improving the platform. Four new releases have been defined to improve the Company's performance needs."

Secondly, risk management is a topic that DCV has engrained in its DNA since its creation. "We know the importance of what we manage; that is why we are working with other infrastructure companies (FMI) to have the same perspective on how to face operational and cybersecurity risks collaboratively." Similarly, he ensured that the Company will continue promoting practices to keep its high standards of service availability and improving the responses that are part of the business continuity plan.

In 2021, the Company started identifying opportunities to enhance the efficiency of its relationship with its clients. In this line, the third pillar is focused on the digital transformation process that intends for those interactions to be more efficient in the market.

The fourth line of work is innovation, which was presented as a key component for developing new technologies. "We proudly say that we have been working on a project called DCV Digital with Nasdaq, to develop the first DLT technology (Blockchain) processes."

Finally, Rodrigo Roblero said that all changes will have the Company's clients at the center: "Last year, we underwent a deep internal restructuring process to strengthen the relations with our clients to develop new opportunities and to address the improvements required by the market. And this is what we expect to continue reinforcing." 

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The virtual meeting took place using the Click&Vote service, a digital solution for shareholders' and investors' meetings developed by the Santiago Stock Exchange and DCV.

The 28th DCV Depositors' Meeting was held on March 14. The Surveillance Committee presented a detailed report on the 2022 operational period on that day. In addition, Guillermo Tagle, Chairman of DCV's Board of Directors, thanked the depositors for the trust and support given to the DCV Evolution transformation project.

The Committee started its activities in 2022 and continued with the agreement to hold periodical videoconference meetings. Similarly, the Committee continued the ongoing contact with the Company's executives to monitor the operation of DCV and the development of the DCV Evolution Project.

The Chair of the Committee, Hugo De La Carrera, informed that during the period, the Surveillance Committee participated in seven briefings on the progress of the technology upgrade project's deployment, which updated the systems linked to the securities custody and settlement service in the Company. On the other hand, daily transactions continued being monitored at DCV to obtain information on the behavior of the process and on any major changes that could alter the normal operation of the transaction flow.

Regarding the main tasks considered in the annual planning, De la Carrera highlighted the hiring of PricewaterhouseCoopers (PwC) to evaluate the internal control systems of Depósito Central de Valores, confirm certificates, and conduct quarterly cash counts of valid instruments.

In addition, the Chairman, on behalf of the members of the Committee, thanked DCV for the trust placed during this year and for their support and professionalism in the tasks assigned, concluding that the objectives set in the 2022 activities plan were met successfully.

Guillermo Tagle, Chairman of DCV's Board of Directors

"When a company undergoes a transformation process, it changes its core, which is probably one of the most important challenges we face, especially as a technology services company. Undoubtedly, this could not have been achieved without the support of all its participants," said Guillermo Tagle.

Rodrigo Roblero Arriagada, General Manager of DCV, reaffirmed the Company's commitment: "We will continue safely managing any risks that we have in our hands, and we will provide high-quality services that continue strengthening our company."

New Board of the Surveillance Committee

In the meeting held through the digital solution for shareholders' and investors' meetings, Click&Vote, the five members of the Committee for the 2023-2024 period were chosen:

• Hugo de la Carrera P. (President)
• Oscar Mehech C. (Vicepresident)
• Américo Becerra Morales (Secretary)
• Victoria Martínez Ocamica
• José Miguel Valdés Lira

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In the context of the new Fintech Act, both institutions will work together to support the development of the market based on the need of Chilean Fintechs.

Depósito Central de Valores (DCV) has partnered with FinteChile to promote collaborative work with Fintechs and foster innovation and inclusion in the financial market.

As explained by Javier Jara, Legal and Corporate Affairs Manager of DCV, "this is another step that our organization is taking towards an open finance scheme, where the aim is to create direct benefits to its users, always protecting their security, which should be reflected in a financial market that moves towards a greater financial inclusion."

The Fintech Act was recently passed by Congress and regulates financial instruments' (including Cryptocurrencies) custodians. Mr. Jara said that "it is vital for both the private and public sectors to work towards initiatives in line with that challenge. By working with Fintechs, we will provide a better market infrastructure, in sync with their needs, and thus we will be able to anticipate the implementation of this Act."

Fintechs are growing strongly in Chile and around the world. According to a recent study of FinteChile, international investment and expansion continue within the aspiration of Fintech companies: 75.8% of respondents are thinking about making investments in the next six months, and 79% are planning to expand their businesses to other countries.

"This development is explained by the great impact caused by technology finance, promoting inclusion, competition, and innovation in our country and the rest of the world. Through our partnership with DCV, we will continue promoting this growth, directly benefiting people," said Ángel Sierra, Executive Director of FinteChile.

DCV has been working intensively for many years to promote innovation in the capital market through its companies, as well as through AUNA Blockchain, the first consortium in Latin America to create and provide access to blockchain technology-based solutions, that also offers, among other services, e-voting for Shareholders' Meetings and Investors' Meetings, Click and Vote.

Also, through its business unit Depósito de Valores, it offers its clients (participants) securities registration, trade, settlement, and custody services, considerably reducing the risk of their physical management during their entire life cycle (issuance, negotiation, and maturity). Since its beginnings in 1995, it has considerably increased its trade volumes by providing a sound infrastructure to the Chilean financial market, and it currently keeps 9,444 million UF (363 billion dollars).

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