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 constituted between 5 and 18 members elected by the General Shareholders Meeting.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	No, the board is constituted under the principle one member one vote, regardless of the stake each member might have on SCLV capital.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	No, SCLV establishes its tariffs and fees depending on the costs of the service provided.
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)?	SCLV is open to receive opinion concerning registering, clearing and settlement from its participants. There is a Technical Advising Committee for the surveillance; study and counselling of all SCLV procedures. In this committee relevant participants are represented and other participants can be invited. Moreover, there is a Claim Service set up to give adequate response to any claims made by the public in relation to either the registry, or clearing and settlement, or with its participants' activities. Additionally, SCLV participants may use the Arbitration Committee to solve their disputes.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	There is an Annual General Meeting open to all shareholders and the Technical Advising Committee that meets regularly. The SCLV publishes an annual report detailing its actions and plans, as well as its financials. In addition, SCLV advises of any matter regarding its functions through Releases, Instructions, Informative Notes and its website (www.sclv.es).