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.
About BVL
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
About Cavali
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.
About Scotiabank
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.
About Citi
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.
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SOURCE Scotiabank
