Compliance Report ISSA Recommendations 2000

ISSA - International Securtities Services Association

Compliance to the ISSA Recommendations 2000

Market: Colombia

Status: October 4, 2001

Recommendation 1
Recommendation 2
Recommendation 3
Recommendation 4

Recommendation 5
Recommendation 6
Recommendation 7
Recommendation 8

Market selection

Recommendation 3

The industry worldwide must satisfy the need for efficient, fast settlement by full adherence to the International Securities Numbering process (ISO 6166) and uniform usage of ISO 15022 based standards for all securities messages. The industry should seek to introduce a global client and counterpart identification methodology (BIC - ISO 9362) to further facilitate straight through processing. Applications and programmes should be structured in such a way as to facilitate open inter-action between all parties.

1. Does the market use ISIN as the primary securities identification code? ISINs are used as the primary means of security identification. However, some securities are still identified by local security codes.

2. Are the major participants in the market linked electronically? Yes, all major participants (i.e, banks, brokerage houses, fiduciaries and issuers) are linked to DECEVAL through its proprietary system. DECEVAL’s system only permits movement of securities; cash is settled outside the system. DECEVAL has plans to link with the Central Bank system in order to provide true DVP settlement.

DCV is linked electronically through the Central Bank Electronic System (SEBRA) to direct depositors only (i.e. banks and fiduciary companies).

3. Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging? No. Colombia’s depositories communicate with participants/members through proprietary systems, which do not comply with ISO standards for securities messaging.

4. Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology? No. The depositories have their own internal codes and account numbers. However, the tax identification numbers issued to investors is a common form of identification for client accounts.

1.	Does the market use ISIN as the primary securities identification code?	ISINs are used as the primary means of security identification. However, some securities are still identified by local security codes.
2.	Are the major participants in the market linked electronically?	Yes, all major participants (i.e, banks, brokerage houses, fiduciaries and issuers) are linked to DECEVAL through its proprietary system. DECEVAL’s system only permits movement of securities; cash is settled outside the system. DECEVAL has plans to link with the Central Bank system in order to provide true DVP settlement. DCV is linked electronically through the Central Bank Electronic System (SEBRA) to direct depositors only (i.e. banks and fiduciary companies).
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	No. Colombia’s depositories communicate with participants/members through proprietary systems, which do not comply with ISO standards for securities messaging.
4.	Does the market operate standard identification codes for counterparties or client accounts and, if so, how do (or could) these fit into a single global identification methodology?	No. The depositories have their own internal codes and account numbers. However, the tax identification numbers issued to investors is a common form of identification for client accounts.