During 2016, DCV exceeded the growth objectives targeted at the beginning of the year, reaching records in national and international custody, as well as in the number of electronic pledges.

Hence, it reached volumes of 7,810 million UF in national custody, 13.6% more than in 2015, and more than 37 million UF in international custody.

“This is principally due to business management and to our strategy to deliver more and better services, focusing on the clients’ needs, always with our excellent quality level”, explains DCV’s business and legal manager, Javier Jara.

Records that also include DCV Registros, an affiliate that reached the unprecedented number of 303 registries managed.

2016 was also crucial to consolidate the Electronic Pledge Registry Service, released in 2015, the use of which increased significantly during the past year. Its main ally was an agreement executed between DCV and the Association of Banks and Financial Institutions (ABFI). Finally, the market is becoming aware of the real benefits of this service, not only regarding cost reduction, but also substantial time efficiency.

The enactment of the long-awaited Productivity Law and the changes it made to Law 18,876, regulating the operation of Private Entities of Securities Custody, enabled the custody service for Mining Securities, which resulted in a new market for DCV. “This service is the result of extensive work with the SVS in order to obtain authorization, as well as to ratify the business model for custody, and a work with Sernageomin to finalise the manner, methods and mechanisms under which the securities would be established”, states Jara.

Future Challenges

The aforementioned Productivity Law also gives DCV the opportunity to receive other securities on deposit, as well as other assets, documents and agreements authorized by the SVS, enabling it to explore opportunities to custody other instruments such as: invoices traded in the Commodities Exchange, registered or renewable DPF, electronic promissory notes, Transferable Mortgage Loans, among others. In this regard, Javier Jara noted that “one of the goals for this year is for DCV to custody all invoices traded in the Commodities Exchange“.

Another major challenge is to promote the service for the new type of pledge (Special Pledge) on securities held on deposit with DCV.  It will provide a system that will facilitate mechanisms to grant and release electronic pledges on securities held in custody. It will also enable their enforcement by mere instruction and transfer to a stock exchange. “This model brings us closer to modern legislations which, regarding securities markets, demand efficient models to issue and settle securities” states Javier Jara.

The Special Pledge shall be limited to Depositors and their agents qualified to invest, and includes national or foreign securities held on deposit.

This is a new year for DCV, where we will concentrate our efforts to deliver excellent service, in order to fulfill the mission we have defined for the business.

 DCV News January 2017