1. MONTEVIDEO Benefits of the Montevideo Stock Exchange Clearing, Settlement & Custody System October 2005Patricia Torrado

2. Uruguayan Security Market Market Regulator and Controller: Banco Central del Uruguay 2 Stock Exchange Entities Montevideo Stock Exchange: 138 years 76 members (artificial persons and Stock Firms) 10 Special Members (6 Banks, National Insurance Bank “Banco de Seguros del Estado” and 3 semi-private banks) Electronic Stock Exchange: 12 years 24 Operators: 19 Banks and Foreign Currency Brokers 4 PFTs and 1 Semi-private Bank)

3. Uruguayan Security Market Public Bond Market: Private Bond and Share Market: almost non- existent

4. Uruguayan Security Market 2 Clearing, Settlement and Custody Systems: 1) Banco Central del Uruguay: Custody of local dematerialized public debt Settlement of same-day foreign currency exchange operations and local dematerialized securities of the Electronic Stock Exchange Settlement of local dematerialized securities operations between the MSE’s CSCS and the financial institutions that do not participate in it

5. Uruguayan Security Market 2) Montevideo Stock Exchange: Custody of Uruguayan public and private (physical and dematerialized) securities and foreign securities Clearing and Settlement of operations between MSE members. Settlement of MSE members’ dematerialized local securities and the rest of the financial system through the BCU Settlement of cross border operations

6. MSE’s CSCS Immobilization and Dematerialization

7. MSE’s CSCS Custody Certificate Issued for Investors Compensation, Settlement and Custody System System Participants Investors

8. MSE’s CSCS Settlement of cross border operations

9. MSE’s CSCS Local and International Uruguayan Debt Swap in 2003 Tool in the bank liquidation processes after the 2002 crisis, as well as debt settlement of the financial system’s debtors

10. MSE’s CSCS Who benefits from MSE’s CSCS? Investors MSE Operators Montevideo Stock Exchange Banco Central del Uruguay

11. MSE’s CSCS What are the Uruguayan CSCSs lacking? Unification of operations settlement Further reduction of settlement-related risks Legal framework concerning physical securities, etc. etc........ Is there a potential way? Cooperation

12. Thank you