11
Caja de Valores S.A.Caja de Valores S.A.Central Depository in ArgentinaCentral Depository in Argentina
Securities Recording Model for the Beneficial OwnerSecurities Recording Model for the Beneficial Owner
Efrain CarvajalEfrain Carvajal
New York, October 9, 2007New York, October 9, 2007
ACSDALeadership Forum
ACSDALeadership Forum
22
The Argentinean Stock Market SystemThe Argentinean Stock Market System
CC NN VVBCBABCBA
MERVALMERVAL
CVSACVSA
33
The Argentinean Capitals MarketThe Argentinean Capitals Market
Ministry of Economics
National Securities Commission
Central Bank
CRYLSettlement system
for certainpublic instruments
OTC MarketFor public instruments
Argenclear
MervalStock
Market
CSD
Banco de Valores
44
Registration Agent
Main ServicesMain Services
Collective Deposit
Technological Services
Registration of securities in accounts and auxiliary accounts for the beneficial owner
Direct services to the shareholders
IT services for the Argentinean Stock Market system
55
Established - November, 1974Public company with domestic private equity Legal Basis
Law 20.643Regulatory Decree 659/74Operational RegulationsDecree 2.220/80
Collective Deposit – Legal FrameworkCollective Deposit – Legal Framework
66
Argentinean Stock or OTC brokers; or foreign Stock or OTC brokers Argentinean banks and financial institutions; and foreign banks and financial institutionsMerval and ExchangesDepartment of FinanceAFJPs -Insurance CompaniesFCI Business DepositoriesForeign Investment FundsForeign Securities Depositories
Collective Deposit - DepositorsCollective Deposit - Depositors
77
Account Structure
Depositor DepositorDepositor
Customerauxiliaryaccount
Customerauxiliaryaccount
• The systemrecords the data of the titleholders.
• Separates the custodian’s equity from that of the depositors and of the customers.
Customerauxiliaryaccount
Customerauxiliaryaccount
Customerauxiliaryaccount
Customerauxiliaryaccount
88
• Equity separation
• Quarterly distribution of statements by mail– Report with the balances of the assigned accounts and all transactions during
the last quarter
• Return of Quarterly Reports– 1st. Auxiliary account branded– 2nd. Auxiliary account frozen
• Other reasons for freezing– Legal order: seizure– Covenants and warranty deeds - collateral– Economic entitlements on the shares: debt collateral
Marcado
Auxiliary Account AspectsAuxiliary Account Aspects
BloqueoAuxiliary Account
99
Characteristics of Registration for the Characteristics of Registration for the Beneficial OwnerBeneficial Owner
Segregation Broker’s equity is separated Broker’s equity is separated from the CSD’sfrom the CSD’s
Control Mail delivery to the address Mail delivery to the address filed with the CSDfiled with the CSD
Security Freezing of the account Freezing of the account when the statement is not when the statement is not received received
1010
Benefits to the Beneficial Owner from the Benefits to the Beneficial Owner from the RegistrationRegistration
Certificate of Holdings
Issued by the CSD, in the Issued by the CSD, in the beneficial owner’s namebeneficial owner’s name
Legal Situation
Determined by the CSD´s Determined by the CSD´s records, without the broker’s records, without the broker’s participationparticipation
Exercise of Rights
Entitlement of the beneficial Entitlement of the beneficial owner, in function of CSD owner, in function of CSD recordsrecords
1111
Collective Deposit – Make up*Collective Deposit – Make up*
Depositor accounts 607
Assigned auxiliary account 2.600.000
Face Value of Custody 336.150 MM
*Al 31-08-07*Al 31-08-07
1212
Control ProcessesControl Processes
Internal Control: separation of functions, levels of authority.
Quality Management: follow-up, supervision and measurement.
IT Controls: access restrictions, safekeeping of the information, contingency plan.
Audits: operational, IT, quality.
1313
Business ContinuityBusiness Continuity
Lack of available systemsLack of available systems Alternate equipment and linksAlternate equipment and links Contingency plan Contingency plan Distribution of formsDistribution of forms
Non-observance of Non-observance of deadlines and formsdeadlines and forms
Equipment and training of Equipment and training of personnelpersonnel Supervision of activitiesSupervision of activities
Assignment faultsAssignment faults
Programmed and manual controls Programmed and manual controls of completeness and accuracyof completeness and accuracy Distribution of functionsDistribution of functions Differences in the levels for the Differences in the levels for the authorization of transactionsauthorization of transactions Access restrictionAccess restriction
1414
International LinksInternational Links
Euroclear
Euroclear
Clearstream
Clearstream
DTC
DTC
CBLC CBLC
Cavali Cavali DCV
DCV Indeval Indeval
Iberclear Iberclear
1515
ISO Certification ISO Certification 9001 - 20009001 - 2000
Customer ServicesCustomer Services
Participant ServicesParticipant Services
InternationalInternational
1616
International InitiativesInternational Initiatives
ACSDAACSDAAmericas’ Central Securities Depositories AssociationAmericas’ Central Securities Depositories Association
ANNAANNAAssociation of National Numbering AgenciesAssociation of National Numbering Agencies
UNIDROITUNIDROITInternational Institute for the Unification of Private LawInternational Institute for the Unification of Private Law
The Hague ConventionThe Hague ConventionHague Convention on Law Applicable to Certain Rigths in Hague Convention on Law Applicable to Certain Rigths in respect of Securities held with an Intermediaryrespect of Securities held with an Intermediary
1717
Thank you very much!!Thank you very much!!
