As you know, during the second semester 2015, Depósito Central de Valores released the REP service that allows participants to electronically perform the creation and redemption of pledges for securities held in custody, thus replacing the notarial notice with the subsequent saving of cost and time. 

In addition to the service benefits that 44 clients have already evidenced - 19 banks among them -  this year, DCV together with the Association of Banks and Financial Institutions (ABFI) has worked on the implementation of the Electronic Pledge Registry (REP) Service for the creation and redemption of pledges through the material delivery, endorsement as guarantee, of the Position Certificate issued by DCV and which registers the securities to give as guarantee (Article 14 Law 18876) and then, the electronic notice to DCV thereof, needing no other formality or notice by notary public to DCV. This new flow has already been approved by the ABFI and we would like to invite all banks to enrolled in the service and transform the way they operate, doing it through the “REP mode”. The savings are clear for all clients using the service, and the following chart shows a comparative example of the costs when using the REP service versus notarial creation.

In the case of Banks, the new flow and modality for creating pledges is applicable to the following types of pledges:

 DCV News July 2016