The government’s decision to send a draft bill to Congress with measures aimed to boost productivity, including that of the capital market, is on the right track. It is important to promote policy changes that aim at increasing competitiveness and enabling the establishment and development of services aligned with international standards.

In that sense, the initiative to simplify the processes of establishing collateral over securities held in custody in Private Entities of Deposit and Custody of Securities through a new type of pledge that enables the creation, release and execution of guarantees over securities deposited in this type of company, is going in that direction.

This change is an important benefit for our market: it implies the modernization of the mechanisms to create and, particularly, to execute guarantees over public offering securities, thus contributing to reduce costs and speeding up the timing in these processes, which is essential to promote development of securities market activity. The preceding brings our law up to international standards, which already operate under these standards and automated systems. We are confident that these elements will be valued by investors and actors participating in our securities market.

A second idea is to collaborate with operation alternatives in Chile on behalf of international custodians, enabling at the same time access to other investors who participate with the support of these.

The relationship of Depósito Central de Valores (DCV) with its international peers allows us to deduce that there is a real demand from international actors for Chilean fixed income.

These and other changes held in the referred productivity project represent a step ahead in the permanent challenge that we must pursue to have state-of-the-art laws in the securities market and make of Chile an international participant in regards to investments, modernizing and facilitating processes for the benefit of investors.

 DCV News July 2016