More and Better Markets for all

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15 April 2019 News Headline Hits: 482


WIDEN, EXPAND AND DEEPEN THE FINANCIAL MARKET OPTIONS. THAT IS, IN PART, WHAT REGULATION NO. 432 IS LOOKING FOR, AND WHICH WAS DELIVERED BY THE FINANCIAL MARKETS COMMISSION (CMF). THIS IS WHAT WE HAVE BEEN PROMOTING (AND EXPECTING) FROM THE DEPÓSITO CENTRAL DE VALORES (DCV). Basically, this rule recognizes the existence of certain types of goods, documents and contracts that may be deposited and custodied by companies subject to Law No. 18,876. This is excellent news for us since it contributes to developing and deepening the markets. Why? Because expanding the type of assets that may be deposited at DCV brings efficiency to the markets and to depositors that use them as part of their infrastructure. Likewise, it allows, considering the standards that DCV currently meets, providing greater protection and better risk management by those who employ them. And its scope is deep, since it implies widening possibilities for market agents, since it allows them to safeguard assets, documents and contracts that may be kept in vaults or book entry systems, without affecting their nature or condition. This is the case for instruments such as invoices, guarantee bonds, derivative contracts and certificates or public or private instruments from which interest or payment flows arise. The foregoing strengthens the market and the possibility of more efficient business. Special mention should be given to derivative contracts considering the interpretation provided by the CMF through this regulation (regarding the deposit of instruments). Thus, it allows DCV to provide its depositors management of pledges, establishment and transfer of guarantees services. Accordingly, it may also provide depositors with the valuation of these guarantees or contracts according to the terms established in the regulation. Another case that should be particularity noted is the situation regarding SMEs, since they now may operate to a greater extent through DCV and, thus, being able to have the legal protections established by the special legislation. Prior to this rule, SMEs could only operate with public offering securities, which narrowed their access to services offered by DCV. However, public or private contracts of which interest or payment flows arise, are currently being studied since they will be able to use them in their capacity as creditors and debtors. Only a few days have passed since the commission published this regulation and considering the interest it generated, both nationally and internationally, makes us look to the future optimistically. The market is already aware of new business possibilities. For our part, we will remain aware before our depositors’ requirements regarding the new services that this regulation allows providing. For more information visit dcv.cl and follow us on DCV’s LinkedIn page. DCV News

WIDEN, EXPAND AND DEEPEN THE FINANCIAL MARKET OPTIONS. THAT IS, IN PART, WHAT REGULATION NO. 432 IS LOOKING FOR, AND WHICH WAS DELIVERED BY THE FINANCIAL MARKETS COMMISSION (CMF). THIS IS WHAT WE HAVE BEEN PROMOTING (AND EXPECTING) FROM THE DEPÓSITO CENTRAL DE VALORES (DCV).

Basically, this rule recognizes the existence of certain types of goods, documents and contracts that may be deposited and custodied by companies subject to Law No. 18,876. This is excellent news for us since it contributes to developing and deepening the markets. Why? Because expanding the type of assets that may be deposited at DCV brings efficiency to the markets and to depositors that use them as part of their infrastructure. Likewise, it allows, considering the standards that DCV currently meets, providing greater protection and better risk management by those who employ them.

And its scope is deep, since it implies widening possibilities for market agents, since it allows them to safeguard assets, documents and contracts that may be kept in vaults or book entry systems, without affecting their nature or condition. This is the case for instruments such as invoices, guarantee bonds, derivative contracts and certificates or public or private instruments from which interest or payment flows arise. The foregoing strengthens the market and the possibility of more efficient business.

Special mention should be given to derivative contracts considering the interpretation provided by the CMF through this regulation (regarding the deposit of instruments). Thus, it allows DCV to provide its depositors management of pledges, establishment and transfer of guarantees services. Accordingly, it may also provide depositors with the valuation of these guarantees or contracts according to the terms established in the regulation.

Another case that should be particularity noted is the situation regarding SMEs, since they now may operate to a greater extent through DCV and, thus, being able to have the legal protections established by the special legislation. Prior to this rule, SMEs could only operate with public offering securities, which narrowed their access to services offered by DCV. However, public or private contracts of which interest or payment flows arise, are currently being studied since they will be able to use them in their capacity as creditors and debtors.

Only a few days have passed since the commission published this regulation and considering the interest it generated, both nationally and internationally, makes us look to the future optimistically. The market is already aware of new business possibilities. For our part, we will remain aware before our depositors’ requirements regarding the new services that this regulation allows providing.

For more information visit dcv.cl and follow us on DCV’s LinkedIn page.

DCV News