1 Caja de Valores S.A. Central Depository in Argentina Securities Recording Model for the Beneficial Owner Efrain Carvajal New York, October 9, 2007 ACSDA Leadership Forum

2 The Argentinean Stock Market System C N VC N VC N VC N V BCBA MERVAL CVSA

3 The Argentinean Capitals Market Ministry of Economics National Securities Commission Central Bank CRYL Settlement system for certain public instruments OTC Market For public instruments Argenclear Merval Stock Market CSD Banco de Valores

4 Registration Agent Main 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

5 Established - November, 1974 Public company with domestic private equity Legal Basis Law Regulatory Decree 659/74 Operational Regulations Decree 2.220/80 Collective Deposit – Legal Framework

6 Argentinean Stock or OTC brokers; or foreign Stock or OTC brokers Argentinean banks and financial institutions; and foreign banks and financial institutions Merval and Exchanges Department of Finance AFJPs -Insurance Companies FCI Business Depositories Foreign Investment Funds Foreign Securities Depositories Collective Deposit - Depositors

7 AccountStructure Depositor Customer auxiliary account Customer auxiliary account Thesystemrecordsthedataofthetitleholders. Separatesthecustodian’s equity from that of the depositors and of the customers. Customer auxiliary account Customer auxiliary account Customer auxiliary account Customer auxiliary account

8 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 Aspects Bloqueo Auxiliary Account

9 Characteristics of Registration for the Beneficial Owner Segregation Broker’s equity is separated from the CSD’s Control Mail delivery to the address filed with the CSD Security Freezing of the account when the statement is not received

10 Benefits to the Beneficial Owner from the Registration Certificate of Holdings Issued by the CSD, in the beneficial owner’s name Legal Situation Determined by the CSD´s records, without the broker’s participation Exercise of Rights Entitlement of the beneficial owner, in function of CSD records

11 Collective Deposit – Make up* Depositor accounts 607 Assigned auxiliary account Face Value of Custody MM *Al

12 Control 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.

13 Business Continuity Lack of available systems  Alternate equipment and links  Contingency plan  Distribution of forms Non-observance of deadlines and forms  Equipment and training of personnel  Supervision of activities Assignment faults  Programmed and manual controls of completeness and accuracy  Distribution of functions  Differences in the levels for the authorization of transactions  Access restriction

14 International Links Euroclear Euroclear Clearstrea m DTC DTC CBLC Cavali DCV DCV Indeval Iberclear

15 ISO Certification Customer Services Participant Services International

16 International Initiatives ACSDA Americas’ Central Securities Depositories Association ANNA Association of National Numbering Agencies UNIDROIT International Institute for the Unification of Private Law The Hague Convention Hague Convention on Law Applicable to Certain Rigths in respect of Securities held with an Intermediary

17 Thank you very much!!