Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 2

Securities Systems must allow the option of network access on an interactive basis. They should cope with peak capacity without any service degradation, and have sufficient standby capabilities to recover operations in a reasonably short period within each processing day.

1.	How often, over the last twelve months, has the depository been required to:
	Change its published settlement timetable?	Indeval has not had to change its published hours of operation in the past twelve months.
	Extend the time of opening for settlement input by users?	Indeval has not had to change its published hours of operation in the past twelve months.
	Delay start of day processing?	Indeval has not had to change its published hours of operation in the past twelve months.
2.	Does the depository operate real time or multiple batch processing for settlement?	Indeval maintains two settlement systems, the Sistema de Compensación de Operaciones (SCO) and the Sistema Interactivo de Depósito de Valores (SIDV). While both systems offer true DVP settlement, the settlement process varies between the systems. The SCO system is currently used to settle interbroker equity transactions for trades executed on the Bolsa Mexicana de Valores (BMV). Settlement through SCO takes place in seven 15 minute batches at 9.30, 12.30, 14.00, 15.00, 15.15, 15.30 and 15.45 hrs. The SIDV system is used to settle broker to custodian equity transactions as well as all fixed income transactions. Settlement through SIDV takes place on line in real time. Indeval is in the process of migrating broker to custodian equity transactions to the SCO system, this migration is expected to occur during May 2001.
3.	Does the depository allow interactive communication (on line real time) with its users, enabling settlement input and amendment?	Yes, Indeval provides to its users a proprietary system that works on line real time. As interbroker equity transactions are automatically captured by the BMV and passed through an on line real time link to Indeval’s SCO system, no additional input is necessary for these trades. Amendments and cancellation of pending settlements in the SCO system are not permitted. Brokers and banks may input settlements into the SIDV system on line real time and have the option to cancel any settlement trade as long as the counterpart has not confirmed it in the system.
4.	Has the depository ever failed to recover an outage within the day or failed to start processing runs for a whole day; and, if so, when did that failure arise and what steps have been taken to prevent a similar event in the future?	This has not occurred in the history of the depository.