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 members are the major Transfer Agents and local banks in the Venezuelan market.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	Five entities hold the majority voting: 1) Caracas Stock Exchange (16.10%), 2) Servicios EDC (16.10%), 3-4)Banco Provincial and Mercantil (16.10% each) and 5)Banco Venezolano de Crédito (16.10%). Latter is the software provider and administrator.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	All transactions are subject to the broker's fee. All transactions are treated in the same manner, regardless of the domicile of the investor.
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)?	At present, the depository is mainly oriented towards supporting the exchange transactions and the overall efficiency of the market as a whole. The depository is open to any suggestions. Any lobbying efforts are coordinated through the Comision Nacional de Valores (National Securities Commission).
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	The depository holds meetings at least once a month with their shareholders.