mexican settlement model gerardo gamboa april,2013
TRANSCRIPT
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Mexican Settlement Model
Gerardo Gamboa
April,2013
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Trading Mechanisms
Exchanges
Price Vendors
Banking Commission
Central Bank
Regulators Financial Participants
Central Bank
InfrastructureFacilitators
Ministry of Finance
Settlement Participants
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BIS establishesPayment Systems Principles and
Best Practices
Enhance the Mexican financial
markets
History
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1. Model 1:
Real-time gross settlement
2. Model 2:
Netting of funds
3. Model 3:
Netting of securities and funds
Bank for International Settlements DvP Models
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$500 USD
Bank A
Bank BBank C
Borrow
100
R9b1k
$500 USD
Model 1 Real-Time Gross Settlement
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Liquidityand real-time
Efficiency
Simplicity
Model 1 Real-Time Gross Settlement
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Liquidity
and real-time
Efficiency
Simplicity
Model 1
Liquidity
and real-
timeEfficiency
Simplicity
Model 2
Model 2 Netting of Funds
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A sells 100 X $500 to CA buys 100 X $500 to B
ABC
R9b1k100
$500 USD
Bank A
Bank C Bank B
Netted
At the end of the settlement cycle
Model 3 Netting of Securities and Funds
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Model 1
Liquidity
and real-
timeEfficiency
Simplicity
Model 2
Model 3
Liquidity
and real-
timeEfficiency
Simplicity
Liquidity
and real-time
Efficiency
Simplicity
Model 3 Netting of Securities and Funds
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Liquidity
and real-time
Efficiency
Simplicity
Model 1
Liquidity
and real-
timeEfficiency
Simplicity
Model 2
Liquidity
and real-
timeEfficiency
Simplicity
Liquidityand real-
timeEfficiency
Simplicity
Model 3
Model
DALI Model
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World-classModel 3 system
Continuoussettlement
Attainorganizationalobjectives
Mexican Model
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ISO 15022Indeval Financial Protocol
Match Engine
Securities Management
Funds Operations
Securities Operations
International Operations
Central BankLink
Custody
Safekeeping
Risk Management
Collateral Management
Pre-settlement
Settlement
Clearing
Processes all transactions
!
Settlement System
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Pre-settlement Clearing
Settlement
To settle
To clear
Pending
Pend
ing
To s
ettle
Settlement System
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Pre-settlement Clearing
Settlement
1,200 $83,000
i
iki
ikiklkji
ijklijkl UUCYTRXp,,,,
DvP
Settlement System
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Pre- SettlementFoP
& C
ash
Dep
osit
s
Cash
Tra
nsfe
r D
ali
Nett
ing
Com
posi
te t
ransa
ctio
ns
Cash
Deb
its
Settlement
Clearing
Named Accounts
Controlled Accounts
Settlement System
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Model 1 Model 3
Real-Time
Efficiency
Configurable pre-settlement module
Objective functions i
iki
ikiklkji
ijklijkl UUCYTRXp,,,,
Versatile
Flexible
Highly Efficient
Features Included
Hibrid
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270Clearing and settlement process
times each and every business day
67,000times each year
Every settlement cycle being Mission critical
Since the First Day of Dalí
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Custody• Number of Issues: 6,706• Value: USD 860 Billion• Custoy value in % of GDP: 95%
Settlement**• Daily average : USD 146.7 Billion• Daily volume: 29,830 Transactions• Daily volumen vs GDP: 4.2 daily
DALÍ-SPEI conection
• Daily Amount of transfers: USD 58 Billion
Settlement & Clearing process• Daily (8:00-16:15hrs): 270 per day• Number of transaction and amount of
the daily fist process:1,400USD 27 Billion
Others• Number of members: 110• Number of messages: 250 000 in and out
Dalí Statistics
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USD 250 billion settled daily 52% reduction
USD 130 billionVery conservativeintraday opportunity cost
USD 240 million in savings in just 18 months
Dali Benefits
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In just one minute:
22,000 data base records
USD 75 billion settled
10,000 messages sent
Dali Record
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Thank you
April, 2013
Mexican Central Securities Depository