GUARDING TODAY THE VALUE OF TOMORROW

Transcription

1 GUARDING TODAY THE VALUE OF TOMORROW

2 Index 1. The Company 2. Securities Market Structure 3. DCV s Principal Services National Custody International Custody Forward DCV Registros 3. Service Quality 4. Ongoing Projects

3 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background DCV 23 YEARS INNOVATING IN THE CAPITAL MARKET Depósito Central de Valores S.A., (DCV) is a Stock Company established in accordance with the Law , its regulation and the instructions issued by the Superintendence of Securities and Insurance (SVS). DCV is entitled to receive publicly offered securities on deposit, facilitating the transfer operations related to those securities between participants according to the procedures contemplated in the cited Law. 3

4 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background INCORPORATION Private Entity created in March 1993, initiating operations in September LEGAL FRAMEWORK Law and Regulation DL SUPERVISION Superintendence of Securities and Insurance. 4

5 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background WHO ARE WE? 2 BUSINESS UNITS: 4 BUSINESS LINES NATIONAL CUSTODY INTERNATIONAL CUSTODY FORWARD DCV REGISTROS DIRECT PARTICIPANTS SYSTEM OPERATORS ADMINISTRATED REGISTRIES 5

6 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background Creation of DCV 1993 IIF and IRV Custody IRV trades registry BCCH dematerialization Custody and registry of DPF trades ZERO coupon swap Bond dematerialization, LCH Creation of DCV Registros DPF operations growth Mutual fund units BCCH issues payable in dollars Operations Initiated Custody and registry of IRF trades Simultaneous trade registry Negotiable instruments PFA Multi-fund system Flexible series instruments Agreement operations OSA deposits Statistical information to the market FLI operations DVP Electronic payment 6

7 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background STP Intraday Clearing House Statistical reports web site BRAA service improvements 2006 Foreign Stock Market Service OMGEO Service Electronic Position Certificate Transfer of production site Separation of Buildings Euroclear arrives in Chile Forward Service MILA Certificate of Partial Position 2013 National ETF Statistical reports CFM Custody REP Service MVE settlement in pesos ISO BCCh DVP with Peru (MILA) 7

8 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background MISSION To provide infrastructure for the custody, settlement and other complementary services for the local and international securities market meeting the highest security, availability, efficiency and quality standards. VISION To be a highly efficient entity with top quality service, leader in the development and innovation of services for the capital market, both locally and internationally. 8

9 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background DCV OWNERSHIP 30% 30% Sociedad Interbancaria de Depósito de Valores S.A. (Banks) Inversiones DCV S.A. (PFA) 23% 10% 6% 1% Santiago Stock Exchange DCV Vida S.A. (Insurance Company) Inversiones Bursátiles S.A. (Electronic Exchange) Valparaiso Stock Exchange and others 9

10 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background DCV BOARD OF DIRECTORS President Vice-president Sergio Baeza V. Arturo Concha U. Directors Jorge Claude B. Arturo del Río L. Mario Gómez D. José A. Martinez Z. Maximiliano Vial V. Guillermo Tagle Q. Juan C. Reyes M. Fred Meller S. General Manager Fernando Yáñez G. 10

11 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background Corporate Governance DCV MAINTAINS 4 BOARD COMMITTEES Business Committee. Audit and Operational Risk Committee HR and Compensation Committee. Technology and Processes Committee. 11

12 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background THE TEAM General Management Business and Legal Affairs Management Human Resources Management Operations and Services Management Comptrollership and Compliance Management Planning, IT and Finance Management IT Operations Management Architecture and Development Management Sub-directorate of Risk 12

13 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background KEY CONCEPTS Single depository. Risk control. Custody of publicly offered securities. Enable transfer of ownership of the securities. Administration of securities. Reports to regulator. Dematerialized issuance. Business continuity. Key entity. SECURITY Business continuity plans. 3 operating and backup sites. ISO Standard Certification. 13

14 The Company DCV History Mission / Vision DCV Ownership Board of directors and corporate governance Background OTHER INFORMATION Supervising entities External Audit (Ernst & Young) Surveillance Committee Superintendence of Securities and Insurance(SVS) Superintendence of Pensions(SP) UAF (Financial Analysis Unit) Insurance Policy: Amount insured: 0.1% of the amount held in custody FIPI (Professional Civil Responsibility) Employee Fidelity Terrorism D&O (Directors and Executives) All operational risk Certifications and Ratings Thomas Murray A+ SSAE-16 ISO ITIL COBIT CISA Adoption and implementation of the crime prevention model certified by BH Compliance Limitada Memberships ACSDA ( Americas Central Securities Depository Association) ANNA (Association of National Numbering Agencies) ISSA (International Securities Services Association) Registered with the IRS to comply with the FATCA law. Registered as Single Financial Entity 14

15 Index 1. The Company 2. Securities Market Structure 3. DCV s Principal Services National Custody International Custody Forward DCV Registros 3. Service Quality 4. Ongoing Projects

16 Securities Market STRUCTURE OF THE CHILEAN SECURITIES MARKET Issuers Stock Companies Commercial Banks Private Sector Public Sector Central Bank of Chile General Treasury Social Security Institute Investors Participants Trading Regulator Superintendence of Securities and Insurance (SVS) Superintendence of Banks (SBIF) Superintendence of PFA Securities Market Settlement Payment System OTC Market 16

17 Index 1. The Company 2. Securities Market Structure 3. DCV s Principal Services National Custody International Custody Forward DCV Registros 3. Service Quality 4. Ongoing Projects

18 Principal services NATIONAL CUSTODY INTERNATIONAL CUSTODY FORWARD DCV REGISTROS 18

19 Principal services National Custody International Custody Forward DCV Registros Securities Custody (public and private) Registration and Settlement Capital Events Dematerialized Issues Electronic Pledge Registry NATIONAL CUSTODY INTERNATIONAL CUSTODY Statistical Reports FORWARD DCV REGISTROS 19

20 Principal services National Custody International Custody Forward DCV Registros FIGURES Custody USD 250 billion UF 6,910 million Includes national and international custody 122,767 TRADES IN DECEMBER 96.4% INSTRUMENTS ISSUED IN DEMATERIALIZED FORM 20

21 Principal services National Custody International Custody Forward DCV Registros DCV securities custody functions in: Position accounts Proprietary securities account Third party securities account Pooled Accounts (R Non-R). Nominated or Individual CMI accounts that may be (R Non R). Inventory account Custody of active affiliates recognition bonds (BRAA) 21

22 Principal services National Custody International Custody Forward DCV Registros Registration and Settlement DCV electronically records the operations and enables the transfer of ownership resulting from the operations performed by its participants: Stock Exchange. Over-the-counter markets (OTC). DCV facilitates the settlement of operations, delivering the securities and connecting to the funds payment systems. 22

23 Principal services National Custody International Custody Forward DCV Registros Capital Events DCV manages programed and non-programed capital events: Coupon payment. Issue maturity. Partial payment. Issue prepayment. Dividend payments. 23

24 Principal services National Custody International Custody Forward DCV Registros Dematerialized Issuance DCV offers dematerialized issues registration services for publicly offered securities, enabling their primary placement. 24

25 Principal services National Custody International Custody Forward DCV Registros Electronic Pledge Registry DCV permits clients to report the registration and release of pledges constituted by or on behalf of Principals through the transfer of electronic instructions. 25

26 Principal services National Custody International Custody Forward DCV Registros STATISTICAL REPORTS Trades Custody Instruments Catalogue Development Tables Type of Instruments Issued Maturity By Type Pledged Instruments The Statistical Reports Service provides information related to the financial instruments that participants hold in custody. 26

27 Principal services NATIONAL CUSTODY INTERNATIONAL CUSTODY Securities Custody MILA M.V.E. Mutual Fund Units Custody OMGEO FORWARD DCV REGISTROS 27

28 Principal services National Custody International Custody Forward DCV Registros The international custody service permits participants investing in securities abroad to custody those investments through DCV as they do in the custody of local securities. International Network 28

29 Principal services National Custody International Custody Forward DCV Registros INTERNATIONAL NETWORK Allows operating with ETF in the foreign securities modality in Chile in the secondary market. Direct account in the US Depository for any operations with the American market. Permits operating Latin America, Europe and Asia. Also, it is the Settlement Bank in DTC. Direct account for operations in Europe For operations in Colombia, Peru and Mexico. Cross-border operations comparison service that facilitates all the post-trade and presettlement processes. 29

30 Principal services National Custody International Custody Forward DCV Registros 53 CLIENTS Banks Fund Administrators Stock Brokers Insurance Companies Stock Exchanges 30

31 Principal services National Custody International Custody Forward DCV Registros OMGEO Omgeo Central Trade Manager (Omgeo CTM) is a service that has as its principal objective to enable the communication between brokers and investors during process of matching post-trade and pre-settlement of the operations. 31

32 Principal services National Custody International Custody Forward DCV Registros SCOPE OF ACTIVITY 32

33 Principal services National Custody International Custody Forward DCV Registros OMGEO 13 CLIENTS 33

34 Principal services NATIONAL CUSTODY INTERNATIONAL CUSTODY Registration and Reports Electronic Signature Custody Adm. of Powers of Attorney FORWARD DCV REGISTROS 34

35 Principal services National Custody International Custody Forward DCV Registros The Forward service permits completion of the registration, subscription, centralized and electronic custody of forward contracts subscribed by DCV Participants. 35

36 Principal services National Custody International Custody Forward DCV Registros GENERAL MODEL Participant Registration (2) Representatives signature (4) Agreement (1) Contract Comparison (3) Contract held in custody with DCV (5) Participant Registration (2) Representatives signature (4) 36

37 Principal services National Custody International Custody Forward DCV Registros 43 CLIENTS PFA Banks Stock Brokers Insurance Company General Fund Administrator 37

38 Principal services NATIONAL CUSTODY INTERNATIONAL CUSTODY FORWARD DCV REGISTROS Shareholders and Contributors Reg. Investment Funds Mutual Funds 38

39 Principal services National Custody International Custody Forward DCV Registros STATISTICS 285 ADMINISTRATED REGISTRIES 134,277 SHAREHOLDERS SERVED IN % IPSA COMPANIES ADMINISTRATED 39

40 Principal services National Custody International Custody Forward DCV Registros As of the year 2000, DCV Registros offers the market the Shareholders and fund contributors registry administration service. 40

41 Principal services National Custody International Custody Forward DCV Registros PRINCIPAL SERVICES Transfer of shares and CFM Issuance and Custody of Securities Dividend payments and payments to the fire department Registration of liens and prohibitions Study of legal documents Issuing of Legal Reports Shareholders Meetings Share swaps, withdrawal rights, etc. 41

42 Index 1. The Company 2. Securities Market Structure 3. DCV s Principal Services National Custody International Custody Forward DCV Registros 4. Service Quality 5. Ongoing Projects

43 Service quality Principal Activities Business - Marketing Operations and Services HR Management IT Operations Research and Surveys User Committee Obligations with the market (SLA) Internal Service Quality Index (ICI) Monitoring Daily Incidents Training Definition and Internal Business Meeting Communication control of SLA over Training programs. Control of response Elements requirements time agreed by our Events Meetings Cycle MAC requirements registration systems. Users help desk Lunches/Breakfasts Survey results MAU analysis meeting Initiatives with decision-making areas 43

44 Service quality DCV Service Quality Survey (Adimark Gfk) OBJECTIVE Generate regular and timely information related to the perception of clients regarding the performance of DCV systems within a limited set of indicators. Specific objectives Identify key aspects of the service and their areas for improvement. Inquire into the service problems. Raise suggestions and improvement expectations. Methodology Technical: quantitative study based on telephone interviews with database delivered by DCV. Measurement instrument: questionnaire with open and closed questions, applied according to the profiles of the companies. Average length of 10 minutes. Sample selection: the companies are randomly selected and a minimum of 2 contacts per company are interviewed. 44

45 Service quality PARTICIPANTS Study target group. Over 350 surveys Since 2006 MONTHLY Periodicity of the report (Mar-Dec) OTHER BACKGROUND INFORMATION Delivery of results to the market 45

46 Service quality DCV Service Quality Survey (Adimark Gfk) Areas measured Global assessment of Custody service Response time during settlement International custody service Assessment of registry and MAC help desk service DCV services assessment hours assessment deposit service of new issues 46

47 Service quality 6.3 average mark 2015 and 90% of marks 6 and 7 DCV Global Services Assessment Results Monthly progress Average: %Notas %Marks 6 6 %Notas %Marks 7 7 %Notas %Marks 5 5 %Notas %Marks 4 4 %Notas %Marks 611 to a 3 3 % Net Neta % mar-15 abr-15 apr-15 may-15 jun-15 jul-15 ago-15 aug-15 sep-15 oct-15 nov-15 dic-15 dec-15 Base:

48 Index 1. The Company 2. Securities Market Structure 3. DCV s Principal Services National Custody International Custody Forward DCV Registros 4. Service quality 5. Ongoing projects

49 Ongoing projects PORTFOLIO of 2016 PROJECTS Status 1. Statistical Service, Principal Pledged Instruments In progress 2. ISO Phase 2 Trading / Pledges In progress 3. Securities Management and Settlement Systems for Clearing Houses In progress 4. ApcWin Migration In progress 5. Immobilized Recognition Bond Custody In progress 6. FundSettle Custody Model In progress 7. REP, Pledge on Foreign Securities In progress 8. AGF LUF Registry Administration Improvements In progress 9. Automatic Deposit and Withdrawal of Osas Pilot 10. Mutual Fund Units with Contribution/Redemption in Securities Pilot 11. Electronic Promissory Note Preliminary studies 12. Securities lending Preliminary studies 13. Agreements Preliminary studies 14. Forward Principals / Currencies Preliminary studies 15. Electronic Transfer Preliminary studies 16. Euroclear, Intraday Settlement Facilities Preliminary studies 17. Euroclear, Foreign Securities Lending Preliminary studies 18. Euroclear, Pledge on Foreign Securities Preliminary studies 19. Euroclear, FFMM Centralized Backoffice Service Preliminary studies 20. Custody and Settlement of Invoices in BPC (in SVS) Preliminary studies 21. Principal Account, Version 2 Preliminary studies 22. Collateral Management ABIF Preliminary studies 23. Mortgage Guarantee Central Preliminary studies 49

50 Ongoing projects COMPLETED CANCELLED Delay CN Clearing House closing 2. Mining Exchange, Venture Market 3. Electronic Pledge Registry, Bilateral Scheme 4. Web Services Operations, BCS Monitoring 5. Consolidate MILA, DVP Mexico 6. Foreign Securities Exchange, Settlement in Pesos 7. Forward Improvements 8. Derivatives-Guarantees Clearing House Integration 9. CFM Custody 2 to 8, LUF Changes 10. ISO Phase 1 Agreements 11. AGF Registry Administration Improvements (Affidavits) 12. Position Certificate Improvements 13. Consolidate MILA, DVP Peru 14. Automatic Deposit and Withdrawal of Osas 15. Statistical Report, Development Tables 1. Bond Forward 2. Endorsable Mortgage Loan Custody 3. Tracking of OTC Trading 4. LVA Purchase Study 5. Profundos project purchase study 6. BCCh Report Non-residents 50

51 Contact Business and Legal Affairs Manager Commercial Sub-Manager In the event of requiring further information please contact the business area at the 51

52 DCV: Av. Apoquindo 4001 Piso 12, Las Condes DCV Registros: Huérfanos 770 Piso 22, Santiago Centro