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?	Yes, the board is answerable to its users. It is responsible for overseeing and enforcing the laws and regulations that govern the Depósito Central de Valores SA (DCV) and its users.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	Stockholders of DCV are commercial banks, exchanges and pension funds administrators, each with 30% of the ownership. Life insurance Co's. have the remaining 10%. Each sector or industry have the voting position up to the percentage that it holds.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	There is no cross subsidisation of products. Product prices are agreed with the users, prior to the launch of each product.
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 DCV administration, including the board, is concerned about the market's needs, so the development of new products is in line with their requirements. It does not matter where the process starts; more important is the way DCV faces solutions to the market's needs.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	DCV holds regular meetings with different industries' associations and also with the regulators. The market is not so big (most of them participate in the ownership of DCV), then it is easy to communicate news to different participants.