Latin American Central Depositories Expand Access to DTCC’s Depository
From left to right: Sergio Baeza, chairman of the board, DCV; Donald F. Donahue, chairman and CEO, DTCC; Fernando Yañez, CEO, DCV; and Javier Jara, internal counsel, DCV, during DCV’s visit to DTCC.
Francis Stenning de Lavalle, chairman and CEO, CAVALI (left), and Donald F. Donahue, chairman and CEO, DTCC, at a December meeting at DTCC.
Senior executives from CAVALI ICLV S.A , Peru’s central depository, and Depósito Central de Valores (DCV), the Chilean central securities depository, visited DTCC’s headquarters in December and January, respectively, as they prepare to implement their new services as Depository Trust Company (DTC) participants.
Both were approved to operate on a delivery-versus-payment (DVP) basis at DTC, enabling them to support their own members’ need to settle not only U.S. securities but related U.S. dollar cash obligations in DTC’s settlement system.
Streamlining capital flows
“We are delighted to have been able to upgrade our level of operating at DTC to include DVP settlement services,” said Francis Stenning, chairman and CEO of CAVALI. “This is an important initiative for CAVALI and our customers because it helps streamline the clearance and settlement of capital flows between the Peruvian and U.S. markets.” Eduardo Noriega, a member of CAVALI’s board, joined the meeting with Donald F. Donahue, DTCC’s chairman and CEO.
In 1997, CAVALI became the first Latin American depository to be approved for a direct access account to DTC’s services. CAVALI also became a DTCC shareholder in 2006.
New DTC-DCV link
In December 2007, Chile’s DCV became the first depository in more than 20 years to be approved by DTC as a new central securities depository participant with immediate access to DVP settlement services. This new link will connect DCV’s participants to DTC’s other participants, in order to facilitate cross-border trading on U.S. issues.
“With trading across markets growing in prominence, we see becoming a DTC participant as an important step in building the global infrastructure to provide DCV’s members with better access to the U.S. market,” said Fernando Yañez, chief executive officer, DCV.
During DCV’s visit to New York, Yañez, Sergio Baeza, chairman of the board, and Javier Jara, internal counsel, met with Donahue to discuss current trends shaping the world’s capital markets. DTCC management members also meeting with the DCV delegation included William Aimetti, president and COO; Michael Bodson, executive managing director, Business Management, Strategy and Marketing; Mary Ann Callahan, managing director, Global Relations; and Paul Arthus, managing director, Relationship Management.
Collaboration in the Americas
“We are pleased to be expanding our collaboration with our colleagues in Latin America. Our recent meetings have been valuable not only in ensuring the links between our organizations are seamless, but also to open further dialogue about ways to develop our services to meet the operational demands of a more global market,” said Callahan, who is currently president of the Americas’ Central Securities Depository Association (ACSDA). Both Stenning and Yañez are ACSDA Executive Committee members. @