A few weeks ago, ACSDA (Americas’ Central Securities Depositories Association) formally began the joint project with the IADB in Panama City, aimed at supporting the member countries of this association to implement best practices in the financial market.

Executives of beneficiary securities depositories, control authorities and consultants travelled to Panama in order to participate in the First Training Workshop on PFMI (Principles for Financial Market Infrastructures).

This is a set of rules issued by IOSCO, “International Organization of Securities Commissions”, a group of global regulators recognized as a global standard, which must be adopted by global financial market infrastructures. The IADB is funding this project to support the ACSDA member countries that have not yet adopted them.

“Of utmost importantance was verifying that all members of ACSDA share a common vision regarding further progress in strengthening the infrastructure of the different areas of the securities market. Seeing how the participants of this workshop share their questions, problems and experiences, trying to reach general and common conclusions that help implementing the varioust principles in the best way, is very important”, explains DCV's Commercial Assistant Manager, Juan Carlos Melys.

..:: The challenges

DCV, a pioneer in implementing the principles provided by IOSCO for PFMI, will continue supporting and delivering its experience to the securities depositories participating in this program.

In fact, since 2012, DCV has been working on its understanding and implementation. “We decided to perform a self-assessment of the principles together with Thomas Murray, whose report identified the existing gaps. We implemented a working plan to address them, which we have fulfilled from that moment on. Finally, last year we were evaluated by the World Bank, scoring a good rating and high adherence to the principles”, says Jaime Fernández Morandé, DCV’s Audit and Compliance Manager, responsible for implementing the principles.

For the executive, the interesting thing of being supported by an external view is that it allows visualizing that, in reality, there are fewer principles applicable to DCV, given the local regulation and scope of action, which allows focusing on the relevant issues.

And he added, “sharing this wealth of experience with those who have made slower progress in this regard is important, as ACSDA calls us to share information and experiences in a spirit of mutual cooperation, promoting best practices”.

..:: Self- Evaluation

The self-evaluation this group is working on consists of using a guide, provided by IOSCO, to self-assess the adherence to each of the 24 principles in a specific and comprehensive way.

It is a tool that makes it possible to objectify and normalize the answers (in a very detailed form), allowing for them to be compared. Hence, the gaps are clear and thus, it is possible to structure prioritized remediation plans.

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