Compliance Report ISSA Recommendations 2000

ISSA - International Securtities Services Association

Compliance to the ISSA Recommendations 2000

Market: Peru

Status: November 7, 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? Yes. The Lima Stock Exchange is the ISIN Agency Numbering.

2. Are the major participants in the market linked electronically? Yes, The Stock Exchange, all Brokers, all Custodians Banks and some Institutional Investors.
By using a software called REFLECTION, participants access online the CAVALI main system. Investors are not allowed to access it directly. The Exchange, CAVALI, and participants are linked by a private fiberoptics network provided by the local telephone company. Investors may access their portfolio information through internet. By signing through a CAVALI participant, the may obtain an access code directly from CAVALI.

3. Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging? None of our securities mechanisms have been subject to ISO standards, but we do work with telecommunication companies (Telefónica, AT&T) who act as carriers, and they do have ISO standards in their processes.

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 only international standard used is that relating to securities coding. No change is planned for the near future.

1.	Does the market use ISIN as the primary securities identification code?	Yes. The Lima Stock Exchange is the ISIN Agency Numbering.
2.	Are the major participants in the market linked electronically?	Yes, The Stock Exchange, all Brokers, all Custodians Banks and some Institutional Investors. By using a software called REFLECTION, participants access online the CAVALI main system. Investors are not allowed to access it directly. The Exchange, CAVALI, and participants are linked by a private fiberoptics network provided by the local telephone company. Investors may access their portfolio information through internet. By signing through a CAVALI participant, the may obtain an access code directly from CAVALI.
3.	Does the depository communicate using true (i.e. not bilaterally agreed on sub-standards) ISO standards for securities messaging?	None of our securities mechanisms have been subject to ISO standards, but we do work with telecommunication companies (Telefónica, AT&T) who act as carriers, and they do have ISO standards in their processes.
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 only international standard used is that relating to securities coding. No change is planned for the near future.