SITIO ALTERNATIVO

1
MONTEVIDEO
Benefits of the Montevideo Stock
Exchange Clearing, Settlement Custody System
October 2005
Patricia Torrado
2
Uruguayan Security Market

• Market Regulator and Controller
• Banco Central del Uruguay
• 2 Stock Exchange Entities
• Montevideo Stock Exchange 138 years
• 76 members (artificial persons and Stock
  Firms)
• 10 Special Members (6 Banks, National
  Insurance Bank
• Banco de Seguros del Estado and 3
  semi-private banks)
• Electronic Stock Exchange 12 years
• 24 Operators 19 Banks and Foreign Currency
  Brokers
• 4 PFTs and 1 Semi-private Bank)

3
Uruguayan Security Market

• Public Bond Market
• Private Bond and Share Market almost
  non-existent

4
Uruguayan Security Market

• 2 Clearing, Settlement and Custody Systems
• 1) Banco Central del Uruguay
• Custody of local dematerialized public
  debt
• Settlement of same-day foreign currency
  exchange operations
• and local dematerialized securities of
  the Electronic Stock
• Exchange
• Settlement of local dematerialized
  securities operations
• between the MSEs CSCS and the financial
  institutions that
• do not participate in it

5
Uruguayan Security Market

• 2) Montevideo Stock Exchange
• Custody of Uruguayan public and private
  (physical
• and dematerialized) securities and
  foreign securities
• Clearing and Settlement of operations
  between MSE
• members.
• Settlement of MSE members dematerialized
  local securities
• and the rest of the financial system
  through the BCU
• Settlement of cross border operations

6
MSEs CSCS

• Immobilization and Dematerialization

7
MSEs CSCS

• Custody Certificate Issued for Investors

Investors
8
MSEs CSCS

• Settlement of cross border operations

9
MSEs CSCS

• Local and International Uruguayan Debt Swap in
  2003
• Tool in the bank liquidation processes after the
  2002 crisis, as well as debt settlement of the
  financial systems debtors

10
MSEs CSCS

• Who benefits from MSEs CSCS?
• Investors
• MSE Operators
• Montevideo Stock Exchange
• Banco Central del Uruguay

11
MSEs CSCS

• What are the Uruguayan CSCSs lacking?
• Unification of operations settlement
• Further reduction of settlement-related
  risks
• Legal framework concerning physical
  securities,
• etc. etc. .......
• Is there a potential way?
• Cooperation

12
Thank you