A new milestone was celebrated by Depósito Central de Valores (DCV), which facilitates investors’ operations in the local market. This is the implementation of the international custody service in order that foreign securities traded in the Foreign Securities Market may, as of now, be traded and settled both in the national currency (CLP) and in their original currency (USD).

To DCV, the enablement of this functionality is relevant because it will provide greater facilities and security to the participation of all investors in the foreign securities market, who will be able to invest in foreign securities directly in the national market, as if they were an instrument issued by a Chilean issuer, without resorting to currency exchange operations and under the same transaction settlement schemes.

Javier Jara Traub, DCV Commercial and Legal Affairs Manager highlighted that this service – released along with the Santiago Stock Exchange, BCI Corredores de Bolsa and BlackRock - was possible thanks to the cooperation and work of all the referred actors along with regulatory authorities and the Central Bank of Chile, which allowed for the regulatory changes that authorized the trade of foreign securities traded in the foreign securities market be traded and settled in Chilean pesos.

We are confident that this service will result in new opportunities and greater dynamism for the market, diversifying the business alternatives available for local investors,’ he said.

The executive added that besides DCV’s security and experience as national and international securities custodian, other benefits of this new alternative for investors are: the enablement of a swap management service for the conversion of securities registered in a foreign currency and converting them to pesos, and the maintenance of the dividend payment process, as it will not be affected by this enhancement. 

It is important to keep in mind that DCV provides the infrastructure for the custody of foreign securities and enables the settlement of transactions performed with those securities through annotation in accounts system kept by DCV. In addition, it provides information on the capital events related to these securities.   

To date, there are approximately 771 foreign instruments registered to be traded in the Foreign Securities Market, among which are the main issues of US companies, andparticularly, the Exchange Traded Funds or ETF.

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