IDB/ACSDA PROJECT MEETING “Strengthening Compliance on a Regional Basis with the Global Principles for Financial Market Infrastructures” PROJECT MEETING La Paz, Bolivia April 5, 2017

MEETING AGENDA Review of Project Chronology Project Participants Review of the Project Objectives and Deliverables Responsibilities/Commitments of Project Participants and ACSDA Project Steering Committee Proposed Groupings Next Steps Bermuda CSD and Eastern Caribbean CSD – Parallel Participation IDB remarks regarding the project and process requirements Project Participant Discussion and Q&A.

CHRONOLOGY May 2015 – JHJ initiated discussion with the ACSDA membership at the G.A. June 2015 – Communication began with members regarding the possibility of the submission of a proposal by ACSDA under the IDB Regional Public Goods Initiative Sept 2015 – We had 14 member CSDs who had expressed interest in the initiative Oct 2015 – Apr 2016 – Drafting and redrafting of ACSDA’s proposal and budget and numerous conference calls with prospective participants and IDB representatives Feb 2016 – March 2016 – Collection of Commitment Letters from Participating CSDs and Regulators April 6, 2016 – Submission of ACSDA’s proposal to the IDB which included the participation of 19 members July 20, 2016 – ACSDA was advised by the IDB that our project was one of 15 projects approved under the Regional Public Goods (RPG Initiative) which awarded our project USD 306,815.35. In 2016, the IADB received a record number of 117 proposals for funding under the program

CHRONOLOGY CONTINUED Sept – Oct 2016 – Development, submission and approval of the required project documentation … revised Project Budget, Governance Documentation, Recommitment Letters from ACSDA participants, Steering Committee structure and membership, Project timetable, Technical Cooperation Document, Executing Agency Agreement Nov – Dec 2016 – Development and submission of the Consultants Terms of Reference and criteria for selection. Creation of a list of potential consultants Dec 9, 2016 – Initial meeting of the Project Steering Committee Dec 21, 2016 – IDB issues a request for Expressions of Interest to Consultants Feb 9, 2016 - IDB issues a request for Submissions of Economic Proposal March 17, 2016 – IDB awarded GCI with the contract for the project subject to finalizing the engagement contract March 30, 2016 – IDB, GCI and ACSDA (BB) held a conference call to discuss next steps

PROJECT PARTICIPANTS Participating (Benefiting) Market Infrastructures Barbados – Barbados Stock Exchange Bolivia – Entidad de Depósito de Valores de Bolivia S.A. Colombia - Depósito Centralizado de Valores de Colombia Deceval S.A. Costa Rica – Interclear Central De Valores S.A. Dominican Republic - Depósito Centralizado de Valores, S. A. El Salvador - Central de Depósito de Valores S.A. Guatemala - Central de Valores Nacional S.A. Jamaica - Jamaica Central Securities Depository Panama - Central Latinoamericana de Valores, S.A. Peru - Cavali S.A. I.C.L.V. Uruguay - Banco Central del Uruguay and Bolsa de Valores de Montevideo

PROJECT PARTICIPANTS Supporting Market Infrastructures Argentina - Caja de Valores S.A. Colombia - Depósito Centralizado de Valores de Colombia Deceval S.A. Costa Rica – Interclear Central De Valores S.A. Brazil - Balcão Organizado de Ativos e Derivativos Chile - Depósito Central de Valores S.A. Mexico – S.D. Indeval, Institución para el Depósito de Valores S.A. de C.V. Paraguay - Bolsa de Valores y Productos de Asunción S.A. Uruguay - Banco Central del Uruguay

PROJECT PARTICIPANTS Supporting Regulatory Authorities Bolivia – Autoridad de Supervisión del Sistema Financiero Colombia – Superintendencia Financiera de Colombia Costa Rica – Superintendencia General de Valores El Salvador – Superintendenta Adjunta de Valores Jamaica – Financial Services Commission Peru - Superintendencia del Mercado de Valores Uruguay - Superintendencia de Servicios Financieros del Banco Central del Uruguay

PROJECT OBJECTIVE Through the coordination efforts of the Americas’ Central Securities Depositories Association (ACSDA) and the expert contributions of its more developed member FMIs and consultants, we will provide technical support, training, expertise, and resource support to IDB borrowing members in order to; Produce a Self assessment and remediation plan on the PFMIs for the involved markets to facilitate adoption on a regional basis, Provide experienced and expert on-site support to the FMIs, Ensure that FMI staff establish an in-depth knowledge of the PFMIs, Ensure the ongoing program sustainability through ACSDAs participation.

PROJECT DELIVERABLES Component 1: PFMI Foundation Training Workshops - The objective of this component is to provide training on the PFMIs to staff from the participating Central Securities Depositories (CSDs) and their supervisors. Component 2: Self-Assessment Execution: Creation of the Delivery for the participating entity and supervisor´s engagement - Building upon the training and tools from Component 1, the objective of this component is to have CSDs and supervisory staff in each eligible market undertaken the completion of a PFMI Assessment and preparation of a draft Disclosure Report. Component 3: On-site Review of the Self-Assessment and Quality Assurance -The objective of this component is to provide support to CSDs and regulatory staff in each market to complete the PFMI self‐assessment and to release the Disclosure Report. Component 4: Final Assessment Delivery and Remediation Plan - The objective of this component is to develop a remediation plan to bring the CSDs into compliance with applicable PFMIs.

RESPONSIBILITIES/COMMITMENTS Participating (Benefiting) Market Infrastructures Committed to deliver Sixty (60) Workdays to the project directed towards the completion of the deliverables for their institution and market Be responsible for the accommodation expenses associated with the visiting experts from the Supporting CSDs of ACSDA Complete the deliverables for their market/institution defined for the project in a timely manner in accordance with the project schedule

RESPONSIBILITIES/COMMITMENTS Supporting Market Infrastructures Committed to deliver Fifteen (15) Workdays to the project directed towards the completion of the deliverables for the institution(s) and market(s) to which they are assigned Support the completion of the deliverables for the markets/institutions to which they are assigned for the project in a timely manner in accordance with the project schedule

RESPONSIBILITIES/COMMITMENTS ACSDA Project management and control Project scheduling Coordination of the Steering Committee Issue identification and resolution Liaison between the Project – Project Participants – Project Steering Committee – ACSDA Executive Committee – IDB Contracting and coordination of independent auditors and project audits Complete required project reporting

STEERING COMMITTEE The Project Steering Committee will rotate its membership each 6 months during the course of the project (estimated to be 24 months). With each rotation, a minimum of two members will continue to the next term to ensure continuity.   The following is the composition of the initial Project Steering Committee as ratified by the ACSDA Executive Committee. EDV Bolivia - Isabel Pantoja Barroso - Chair Interclear Costa Rica - Gustavo Monge Cerdas - Secretary Cedeval El Salvador - Jorge Moreno - Member CVN Guatemala - Martha Eugenia Coronado - Member DECEVAL Colombia - Jorge Hernán Jaramillo – Member Indeval Mexico - Roberto Gonzalez - Member IDB – TBD – Observer

PROPOSED GROUPINGS Proposed Groupings based upon responses from Participating CSDs Phase 1 CSDs May 2017 - November 2017 BCSD - Barbados (English) 2nd JCSD - Jamaica (English) 1st  Cedeval - El Salvador (Spanish) 1st Deceval - Colombia (Spanish) 2nd Phase 3 CSDs May 2018 - November 2018 CVN - Guatemala (Spanish or English) 2nd EDV - Bolivia (Spanish) 1st BVM - Uruguay (Spanish) 1st BCU - Uruguay (Spanish) 1st Phase 2 CSDs December 2017 - April 2018 Interclear - Costa Rica (Spanish) 1st Cevaldom - Dominican Rep (Spanish) 1st LatinClear - Panama (Spanish or English) 1st Cavali - Peru (Spanish) 2nd Note: The IDB requested that Cavali and CVN be interchanged. The result is that Groups 2 and 3 are more geographically aligned which could reduce travel costs.

NEXT STEPS Establish the Project Management and structure Confirm groupings and timetable for pre-work and on-site engagements Organize a Steering Committee Reach out to the Supporting CSDs for their volunteer (s) Revise schedule and organize the initial Workshop Likely in Miami or Panama Tentative dates for the initial Workshop May 22 - 24

Bermuda CSD and ECCSD Issue: Both BCSD and ECCSD have expressed an interest in participating in the project, but they are not from IDB countries and are therefore ineligible to receive IDB funding. Proposal to the General Assembly: Allow both organizations (and their regulators) to be included in the Project, provided that no costs associated with their participation fell to the IDB They could receive consulting support for the completion of their Disclosure from “supporting” member CSDs or ACSDA if qualified English speaking volunteers were made available. (This could be seen as a cross training opportunity and potentially a perk for the volunteer(s) given the locations Allocate USD 10,000 from ACSDA capital reserves to cover 50% of the estimated cost of their participation. BCSD and ECCSD would be responsible for the other 50%

Q & A and DISCUSSION