Two years after the Latin American Integrated Market (MILA) was established, Fernando Yañez, General Manager of Depósito Central de Valores of Chile, stated that “MILA expectations have been far exceeded because the three countries which are part of it, Chile, Peru and Colombia, share similar economic features and are eager to grow within the financial markets”.

On the other hand, Yañez adds that several things have occurred during this time, for instance “a great deal of regional activity for those who are seeking to attain a position with their customers in the region; direct investments as there are many Peruvians and Colombians investing in Chile, as well as there are many Chileans investing in Peru and Colombia. Investors, issuers and market agents have shown interest in investing in these markets.

Furthermore, everyone is well aware that other countries within the region are interested in joining MILA, especially Mexico, which is carrying out some legal modifications in order to be the fourth member”.

Furthermore, the executive explained that “MILA has meant a major achievement for the Latin American financial industry as it makes us a powerful region for the rest of the world, so that they look at us and see that there is space for new markets”

On the other hand, Yañez stated that “our infrastructure is prepared to receive greater volumes, which we expect to receive in the future. We have the tools and the willingness, but with projects so large such as this one, you do not see growth from one day to the other, but you have to wait, give space and then see the results”

Depositories’ roles

Regarding the roles that depositories fulfil in this market the General Manager stated that “it precisely means to make available to the market the infrastructure of operation settlement and securities custody that foreigners invest in each of the countries and provide services to all corporate events which are associated with these securities.”

“DCV is supporting the dissemination and is seeking solutions in all those subjects that require change in order to make MILA a market that will continue to strengthen”, he assured.

“Approximately two years ago Depósito Central de Valores of Chile made the decision of going internationally and therefore decided to create a back-up infrastructure for its Chilean customers. In this respect, we can mention the opening of the account in DTC (USA Securities Depository) as well as the opening of the account with Euroclear. To have accounts opened with Cavali, Peru, and Deceval, Colombia, means a broader range in the international service for our customers. A clear example of this is that although Mexico is not yet part of MILA, DCV holds reciprocal accounts with Indeval, Mexican Securities Depository. Through this we are seeking to enlarge our network in order to provide outstanding service to our customers” concluded Fernando Yañez.

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