More and better markets for all
BROADEN, EXPAND AND DEEPEN THE OPTIONS OF THE FINANCIAL MARKET. THAT IS, IN PART, WHAT REGULATION No. 432 OF THE CMF SEEKS
Fanny Tagle, DCV’s Deputy Legal Affairs Manager, explains Regulation No. 432 published by the Commission for the Financial Market (CMF). This regulation recognizes that there are certain types of goods, documents and contracts that can be deposited and custodied by regulated companies according to Law No. 18,876. For DCV this is excellent news that contributes to the development and deepening of the markets. Why? Because expanding the type of assets that can be subject to deposit by DCV, contributes to the efficiency of the markets and depositors that use them as part of their infrastructure. It also allows for providing greater protection to their infrastructure and better risk management by those who use them (considering the standards that DCV complies with).
Its scope is profound, since it opens the possibilities for market agents. The preceding because it allows to safeguard assets, documents and contracts that can be maintained in vaults or book entry systems, without affecting their nature or condition. This is the case of instruments such as invoices, bank bonds, derivatives and certificates or public or private instruments from which interest or payment flows derive. This generates more market and more efficient business opportunities.
It is worth mentioning derivatives, since the authorization given by the CMF through this regulation (in relation to the deposit of these instruments) allows DCV to provide its depositors with the management of pledges, establishment and transfer of guarantees. Thus, it can provide those depositors with the valuation of said guarantees or contracts under the conditions established in the regulation.
Another aspect to consider are SMEs, since now they will be able to operate to a greater extent through DCV. Thus, they will be provided all the legal protections established by the special legislation. Prior to this rule they had the limitation that they could only operate with public offering values, which limited their access to the services offered by DCV. However, public or private contracts from which interest or payment flow are currently being visualized and studied, since they will be able to be used by both creditors and debtors.
Since the regulator published Regulation No. 432, the interest that has arisen nationally and internationally makes us look to the future with optimism. The market already glimpses new business possibilities. For our part, we will stay alert to the requirements of our depositors in relation to the new services that this regulation will allow to generate.