Enhanced Securities Lending Platform enables non-Peruvian investors to borrow and lend
securities in Peru and make available an additional US$ 4 billion in Peruvian stock to the market
TORONTO and LIMA, March 28, 2019 /PRNewswire/ - The Bolsa de Valores de Lima ("BVL"), along with Cavali ICLV S.A. (the Peruvian Central Securities Depository, CSD), Scotia Capital USA, Scotia Sociedad Agente de Bolsa S.A. ("Scotia Bolsa"), Citibank del Peru S.A. ("Citi Peru") and pension fund manager, AFP Integra, has introduced a new securities lending platform in Peru that enhances the Peruvian market depth, liquidity and efficiency and provides clients with greater opportunity to invest in Latin America.
"Stock lending is a solution that complements efforts to boost local liquidity by facilitating price formation, channel funds back to the market, and attract new kinds of investors," said Miguel Ángel Zapatero, Head of Business of Bolsa de Valores de Lima.
"AFP Integra has worked with Scotia Capital, Scotia Sociedad Agente de Bolsa, Cavali and the BVL to develop sustainable processes for securities lending in local markets, enhancing our controlling and reporting systems to prevent and reduce risks associated with these types of transactions," said Jean Pierre Fournier Romero, Chief Investment Officer, Equities, AFP Integra. "We strongly believe that securities lending will provide more liquidity and alternatives to trade Peruvian assets."
"Scotia Sociedad Agente de Bolsa was instrumental in the development and subsequent testing of procedures for the enhanced model," said Cristina León Jiménez, Head of Scotia Bolsa. "Our objective was to meet the standards of both local and international clients while bringing the expertise of our global platform for the benefit of the market."
"Scotiabank is proud to work with the Bolsa de Valores de Lima and Peruvian partners to enhance the local securities lending platform and to extend its availability to non-Peruvian investors," said John Stracquadanio, Head of U.S. Capital Markets, Prime Services, Collateral Management & Funding, and U.S. Equities at Scotiabank. "Scotia Bolsa, the brokerage arm of Scotiabank Peru, worked directly with clients to build a securities lending offer that helps to maximize holdings of institutional investors."
"This offering is the result of an outstanding collaborative effort from infrastructure providers to investors and intermediaries that facilitates non-domiciled investors access to market and contributes in developing the Peruvian capital market," said Diego Castro, Head of Securities Services, Citibank del Peru S.A.
Access to securities lending on the platform requires the services of a local broker dealer, such as Scotia Bolsa, to execute the trade on behalf of the foreign broker.
The enhanced platform includes a formal legal structure incorporating industry standard documentation, Peruvian Appendix to the Global Master Securities Lending Agreement (GMSLA), an operating platform that allows for USD and equity as collateral as well as full visibility into the Cavali's Wari platform via Citi Peru's custody and clearing services.
The enhancement is the result of a two year process working amongst all relevant parties including the local market entities aimed at breaking down the local barriers to entry.
Bolsa de Valores de Lima (BVL) is the stock exchange for the Peruvian market. It facilitates securities trading by providing a series of services, systems and mechanisms to a fair, competitive, transparent and streamlined market. S&P/BVL Peru General Index and S&P/BVL Peru Select Index and S&P/BVL IBGC Index are the current benchmarks of the local market. For more information, visit bvl.com.pe
Cavali is the Peruvian Central Securities Depository. It recently reached ISO certifications for its Business Continuity, Information Security and Quality International standards. Cavali is also a company recognized by BVL for its Good Corporate Governance practices. It holds more than USD 3.8 billion through its DTCC, CDS, Mila and Euroclear accounts and a total of USD 109.4 billion in holdings. Last year, its traded volume settled was USD 398 million. Cavali provides services to more than 250 issuers and 80 participants (banks, local brokers and factoring/invoices companies).
About AFP Integra
AFP Integra, the largest private pension fund in Peru measured by AUM, is part of SURA, the leader in Latin America in pensions and a major player in the insurance, savings and asset management sectors.
AFP Integra has been a participant of the Private Pension Fund System since its creation in 1993 and manages around US$ 19 billion for over 2 million clients.
About Scotia Bolsa
Scotia Sociedad Agente de Bolsa S.A. (Scotia Bolsa), a subsidiary of Scotiabank Perú S.A.A., started operations in 1993 as Wiese SAB. Scotia Bolsa´s main activities include sales and trading for Equities and Fixed Income in both primary and secondary markets in Perú. Scotia Bolsa is ranked among the top leading brokers in terms of volume traded in the Peruvian market and is part of Scotiabank´s global platform Global Banking and Markets, present in the Pacific Alliance countries: Chile, Peru, Colombia and Mexico plus Brazil.
Scotiabank is Canada's international bank and a leading financial services provider in the Americas. We are dedicated to helping our more than 25 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 98,000 employees1 and assets of over $1 trillion (as at January 31, 2019), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit www.scotiabank.com and follow us on Twitter @ScotiabankViews.
1Employees are reported on a full-time equivalent basis.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. In Peru, Citi provides to corporations, governments and institutions with a broad range of financial products and services, including corporate and investment banking and transaction services.
Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi.