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 of Directors at DECEVAL is comprised of members from the local banking entities of the financial sector. The board focuses on the market developments and is not private or individually driven to benefit each institution. Board members are chosen by the General Assembly and include members from the Stock Exchange. In Colombia there is a second CSD, DCV, which only holds government debt securities. DCV is 100% owned by the Central Bank.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	DECEVAL is 58.57% owned by local banks, which represents the largest voting participation of the depository. Banks hold six of the fourteen seats of the board. The other seats are divided between the stock exchange, fiduciary companies, and financial corporations. DCV is 100% owned by the Central Bank.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	No. DECEVAL received 51 percent of its 2000 revenues from securities administration (i.e. income collection and book administration). DECEVAL also receives revenues for custody services, transactions, maintenance, and affiliation. There is no information available for DCV.
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)?	DECEVAL has a monthly board meeting which reviews the financial figures and the status and results of all projects. If there are special issues to address, DECEVAL will form committees with representatives of the market (issuers, brokerage houses, banks, etc). Not applicable for DCV as it is 100% owned by the Central Bank.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	DECEVAL communicates with its participants by sending informational bulletins. DECEVAL is working on a web site that will allow its members to have access to all publications and news flashes. In addition, DECEVAL is planning to provide on line access to all of its clients. Not applicable for DCV as it is 100% owned by the Central Bank.