ACSDA Issuer Services Survey 2008. CDSs that responded the Issuer Services Questionnaire CDS - Canada DTCC – United State INDEVAL – México CBLC – Brasil

ACSDA

Issuer Services Survey

2008

CDSs that responded the Issuer Services Questionnaire

• CDS - Canada• DTCC – United State • INDEVAL – México • CBLC – Brasil • BOLSA DE VALORES NACIONALES - Guatemala • LATINCLEAR - Panamá• CENTRAL NICARAGUENSE DE VALORES – Nicaragua • CEDEVAL – El Salvador• BERMUDA SECURITIES DEPOSITORY – Bermuda• EASTERN CARIBBEAN CENTRAL SECURITIES DEPOSITORY – Eastern Caribbean • CAJA VENEZOLANA DE VALORES – Venezuela• DECEVAL – Colombia• CAVALI – Perú• CAJA DE VALORES – Argentina• EDV – Bolivia • DCV – Chile • STRATE – South Africa • Bolsa de Valores de Costa Rica• CEVALDOM –Dominican Republic• CETIP- Brazil• Jamaica Securities Depository

N=21

• Category 1: Corporate actions

• Category 2: Issue administration services

• Category 3: General Assembly meeting administration services

• Category 4:Other services

Issuer Services Survey– ACSDA 2008SERVICESSERVICES

Study MethodologyStudy Methodology

Corporate Action Section

Issuer Services Survey– ACSDA 2008 Corporate actions section

Competitor in corporate actions

69

52 2 3

1 2 3 4

6

8

2

1

2 22

56

8

4

14

2017

15

8

12 10

5 2

0

4

8

12

16

20

Det

erm

ine

entit

lem

ents

for c

orpo

rate

even

ts

Paym

ent o

r dis

tribu

tion

of c

orpo

rate

actio

ns (d

ivid

ends

, cou

pons

,re

dem

ptio

ns)

Det

erm

ine

tax

with

hold

ing

for

inve

stor

s on

cor

pora

te e

vent

s

Tax

with

hold

ing

agen

t for

dom

estic

inve

stor

s

Tax

with

hold

ing

agen

t for

inte

rnat

iona

l inv

esto

rs

Tax

repo

rting

to a

utho

ritie

s

Prov

ide

info

rmat

ion

in s

uppo

rt of

tax

recl

aim

s

Tax

recl

aim

Pro

cess

ing

Man

age

agre

emen

ts w

ith re

spec

t to

tax

on c

orpo

rate

eve

nts

Proc

essi

ng o

f vol

unta

ry c

orpo

rate

even

ts

Proc

essi

ng o

f man

dato

ry c

orpo

rate

even

ts

Nu

mb

er

CSD is the sole provider CSD is a competitor provider CSD does not provide the service

Services being offered by CSD's to issuers

4

3

7

7

10

13

9

12

1

2

2

1

1

2

5

2

5

2

14

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Determine entitlements forcorporate events

Payment or distribution ofcorporate actions

Processing of voluntary corporateevents

Processing of mandatorycorporate events

Manage agreements with respectto tax on corporate events

Number

Yes, partly involved Yes, fully involved No, but under consideration No, service provided by another party No

Issuer Services Survey– ACSDA 2008Corporate actions section

Way service is provided: Mainly Direct and Wholesale Interfaces: Mainly Proprietary network, paper, commercial network

Services being Offered by CSDs to the issuers

5

5

1

1

3

3

3

2

3

3

3

5

1

1

1

1

2

2

5

4

5

2

3

7

7

10

9

5

8

9

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Determine tax withholding for domestic investors on corporate events

Determine tax withholding for international investors on corporate events

Tax withholding agent for domestic investors

Tax withholding agent for international investors

Tax reporting to authorities

Provide information in support of tax reclaims

Tax reclaim Processing

Number



Way service is provided: Mainly Wholesale Interfaces: Mainly Proprietary network

Services being Offered by CSDs to investors

4

4

3

4

9

10

4

5

1

1

1

8

6

5

5

10

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Determine entitlements for corporate events

Distribute payments (dividends, coupons, redemptions)

Processing of voluntary corporate events

Processing of mandatory corporate events

Manage agreements with respect to tax on corporate events

Number



Way service is provided: Mainly Wholesale. Low direct. Interfaces: Proprietary network, browser base, paper, commercial network

Services being Offered by CSDs to investors

4

4

3

2

1

2

2

1

1

1

1 1

1

2

4

2

2

10

11

12

10

8

9

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Determine tax withholding for domestic investors on corporate events

Determine tax withholding for international investors on corporate events

Tax withholding agent for international investors

Tax reporting to authorities

Provide information in support of tax reclaims

Tax reclaim Processing

Number



Way service is provided: Mainly Wholesale Interfaces: Mainly Proprietary network

Issue Administration Services Section

Competitors in Issue Administracion Services

3 42

4

1

5

8

77

75

9 3

6 5 8 8

16

3

6

0

2

4

6

8

10

12

14

16

18

20

Register Services Operational services

for issuers and/or

investors

Communication

services for issuers

and/or investors

Information reporting

about issuers or

Investors e.g. insider

registration and

reporting

Determine tax

withholding for

mutual funds

Ownership, turnover

and holding statistics

Provide information

to the authorities

regarding the market

CSD is the Sole Provider CSD is a Competitive Provider CSD does not provide Services

Issuer Services Survey– ACSDA 2008 Issue Administration Services Section

Services Being Offered by CSDs - Oriented to issuers

1

4

3

4

1

5

2

11

10

8

1

11

10

1

1

1

1

3

1

2

1

1

4

5

8

13

4

7

14

0 2 4 6 8 10 12 14 16 18 20

Register Services

Operational services for issuers and/or investors

Shareholder communication services

Information reporting about issuers or Investors e.g. insider registration

and reporting

Determine tax withholding for mutual funds

Ownership, turnover and holding statistics

Provide information to the authorities regarding the market

Number

Yes, partly involved Yes, fully involved No, but under considerationNo, service provided by other party No


Way service is provided: Mainly Direct and Wholesale Interfaces: Mainly Proprietary network. Also browser base, paper, commercial network

Services Being Offered by CSD to investors - Dowstream

2

1

2

2

4

3

10

8

6

4

1

5

10

2

3

2

2

1

3

1

1

6

6

8

10

12

8

5

0 5 10 15 20

Register services

Operational services for issuers and/or investors

Shareholder communicaiton services

Insider registration and reporting

Tax redemption to mutual funds

Provision, calculation and mutual funds

Ownership, turnover and holding statistics

Number

Yes, partly involved Yes, fully involved No, but under consideration No, service provided by other party No


Way service is provided: Mainly Direct and Wholesale Interfaces: Mainly Proprietary network, browser base, commercial network

Format used by CSDs to provide Issuance Administration Services

None, 2, 11%ISO 15022, 1, 6%

ISO20022, , 0%

XML, 3, 17%

Proprietary , 12, 66%


Ordinary and ExtraordinaryGeneral Meeting Services

Competitors in Annual General Meetings Services

2 1 1 1 1

12

9

6 7

3

7

1014 13

17

0

3

6

9

12

15

18

21A

nnou

ncem

ent

serv

ices

GEN

ERA

L

ASS

EMB

LY

MEE

TIN

G

adm

inis

trat

ion

serv

ices

Elec

tron

ic

GEN

ERA

L

ASS

EMB

LY

MEE

TIN

G

adm

inis

trat

ion

serv

ices

Prox

y vo

ting

Elec

tron

ic

prox

y vo

ting

CSD is the Sole Provider CSD is a Competitor Provider CSD does not provide Services

Issuer Services Survey– ACSDA 2008Ordinary or Extraordinary General Meeting Services Section


Annual General meeting services offered by CSDs to Issuers - Upstream

7

4

2

8

2

5

4

3

2

1

2

1

4

1 1

5

11

11

10

15

1

1

1

1

1

1

0 3 6 9 12 15 18 21

Announcement services

GENERAL ASSEMBLY MEETING administrationservices

Electronic GENERAL ASSEMBLY MEETINGadministration services

Proxy voting

Electronic proxy voting

Number

Yes, partly involved Yes, fully involved No, but under considerationNo, service provided by another party No Not applicable

Way service is provided: Mainly Direct . Follows Wholesale Interfaces: Mainly Proprietary network, browser base and paper

Annual General Meetings services offered by CSDs to investor - downstream

6

4

2

6

3

4

2

1

2

3

3

4

2

3

1

1

1

1

3

6

10

11

10

10

1

1

1

0 3 6 9 12 15 18

Announcement services

Electronic GENERAL ASSEMBLY MEETING

administration services

Electronic proxy voting

NumberYes, partly involved Yes, fully involved No, but under considerationNot applicable No, serv ice provided by another party No


Way service is provided: Mainly Wholesale Interfaces: Mainly paper, Proprietary network, browser base

Format Used by CSDs to Provide the Service


XML, , 0%

ISO20022, , 0%

ISO 15022, 1, 5%None, 8, 42%


Other Services

Competitors in other services

11

4 5

3

68

6

97

-1

2

5

8

11

14

17

20

National numbering agent(NNA)

Provide information to theauthorities regarding the market

Source of official informationregarding corporate events in

the market

CSD is the Sole Provider CSD is a Competitor Provider CSD does not provide Services

Issuer Service Survey– ACSDA 2008 OTHER SERVICES


Other Services Offered by CSDs to Issuers - upstream

2

5

7

14

7

6

1

1

3

7

6

0 2 4 6 8 10 12 14 16 18 20

National numbering agent (NNA)

Provide information to the authoritiesregarding the market

Source of official information regardingcorporate events in the market

Number

Yes, partly involved Yes, fully involved No, but under consideration

No, service provided by other party No

Way service is provided: Mainly Direct. Follows Wholesale Interfaces: Mainly Proprietary network. Also browser base and paper.

Other services oferred by CSD downstream

3

5

6

9

6

6

1 1 4

7

7

0 4 8 12 16 20

National numbering agent(NNA)

Provide information tothe authorities regarding

the market

Source of officialinformation regarding

corporate events in themarket

Number

Yes, partly inv olv ed Yes, fully inv olv ed No, but under consideration No, serv ice prov ided by other party No


Way service is provided: Mainly Wholesale Interfaces: Mainly Proprietary network, browser base, paper, commercial network

Format Used to deliver Other Services

ISO 15022, 2, 11%

ISO20022, 0, 0%

XML, 0, 0%

None, 7, 39%


The principal channel is the proprietary network.



Corporate actions

Issuance administration

Annual General Meetings

Other services Benefitiary account

• CDS – Canada 8 5 3 2 Participant• DTCC – United States 10 5 2 3 Participant and Sub-accounts• INDEVAL – México 8 5 5 3 Participant• CBLC – Brazil 8 6 3 3 Ben. own• Cetip – Brazil 4 6 0 2 Ben. Own• BOLSA DE VALORES NACIONALES - Guatemala 0 1 0 0 0• LATINCLEAR - Panamá 4 6 3 3 Participant• CENTRAL NICARAGUENSE DE VALORES – Nicaragua 2 0 0 1 0• CEDEVAL – El Salvador 6 6 4 3 Ben. Own• BERMUDA SECURITIES DEPOSITORY – Bermuda 4 6 2 3 Participants & Ben. Own (optional)• EASTERN CARIBBEAN CENTRAL SECURITIES DEPOSITORY – Eastern Caribbean 7 6 2 3 0CEVALDOM -Republica dominicana 3 6 1 3 Ben. Own• CAJA VENEZOLANA DE VALORES – Venezuela 4 6 2 2 Participants & Ben. Own (optional)

• DECEVAL – Colombia Ben. Own

• CAVALI – Perú 5 3 0 0 Ben. Own• CAJA DE VALORES – Argentina 6 3 0 1 Participants & Ben. Own (optional)• EDV – Bolivia 3 4 2 1 Ben. Own• DCV – Chile 1 1 0 2 Participant & Ben. Own• STRATE – South africa 4 3 2 2 Participant w/ shrhold breakdown info• Bolsa de Valores de Costa Rica: its answers were included, although it's not a current member of ACSDA. 7 7 1 0

This chart shows that beneficiary account model is not a relevant factor in the offer to issuers services. Example: CDS Canada vs. CBLC Brazil

• An important business opportunity has being identified for CSDs. Corporate action services, issue administration services, and General Meeting Services are a possibility for growth and diversification of products and services. Is also an important revenue stream for many CSDs.

• Nevertheless, in certain traditionally exclusive services, depositories have competition

• Group of services associated with tax administration services, also have opportunities for growth, uptream and downstream.

• Depositories also have an important role to play in General Meeting administration services.

FINAL CONCLUSIONS

Issuer Service Survey– ACSDA 2008

• Traditional clients of the CSD`s are the issuers, failing to take advantage of the potential that exists in investors.

• The most important interface to provide services is the proprietary one. Current trends shows the WEB to be an important media too. We see paper is also being used.

• Depositories must work to offer value added services to issuer and investor to produce more income. Tax administration services, General Assembly services are good busness opportunities.

Issuer Service Survey– ACSDA 2008

Documents

ACSDA Issuer Services Survey 2008. CDSs that responded the Issuer Services Questionnaire CDS - Canada DTCC – United State INDEVAL – México CBLC – Brasil