Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 1

Securities Systems* have a primary responsibility to their users** and other stakeholders. They must provide effective low cost processing. Services should be priced equitably.

* Securities Systems = depositories, settlement and clearing systems
** Users = customers of the securities system, and all other parties to whom the securities system owes a duty of care

1.	Is the board that governs the depository answerable to its users?	Members of the CVSA Board of Directors are elected by Stock Exchanges and Securities Markets which are the CVSA's shareholders. Securities Markets represent brokers nationwide. Stock Exchanges, through their respective Boards of Governors, represent every section of the country's financial, industrial, and commercial activity.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	The voting position at the Board is split between Stock Exchanges and Securities Markets on a fifty percent basis, respectively.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	The CVSA rules provide for the recovery of depository costs in case of transactions connected with international securities. However, this recovery right has never been exercised so far, because there is a low volume of global trading and, therefore, costs are offset with revenue deriving from domestic securities.
4.	What process is in place at the depository to ensure that it meets the needs of all its stakeholders (e.g. institutions, broker dealers, retail investors, issuers)?	The CVSA Board of Directors works to ensure that CVSA meets the needs of its stockholders. The Board meets at least once a month, and it is highly active.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	CVSA issues circulars and newsletters reporting the rules that regulate the activity of participants, as well as the various corporate events that are conducted by issuers. CVSA has an up-to-date, most comprehensive website, containing all its circulars and newsletters, as well as its financial statements. CVSA has a five-person customer relations department. The depository publishes an annual report detailing its actions and plans, as well as its financial statements.