Latin American Capital Markets

ENHANCING MARKET INFRASTRUCTURE IN EMERGING ECONOMIES 257and same-day finality. Uruguay is about to launch reforms and establish the basic infrastructurefor capital markets. Peru has implemented reforms and modernization,and Colombia has made significant progress. Several other countries, including Bolivia,Ecuador; and Venezuela, have started initiatives.In the late 1990s, the Central Bank of Argentina, working with the private sector;developed a new regulatory framework for payment systems and launched anRTGS, the Electronic Payment Means (MEP). An interbank payment system committeewas formed to support ongoing payment system reform. Other structural changesinclude the consolidation and privatization of low-value automated clearinghousesacross the country and the development of large-value automated clearinghouses(ACHs).The Mercado deValores de Buenos Aires (Merval) maintains and operates themain clearing and settlement system for transactions for equity and corporate debt 15There is a single clearing and settlement system, which operates on a multilateral netsettlement basis, similar to model 3 of the BIS approach to delivery versus payment.There is a separate clearing and settlement system for the settlement of certain shorttermgovernment securities, CRYL, or Central de Registracion y Liquidacion de Instrumentos de Endeudamiento Publico.The central bank is operating this system initially, butit is expected to become part of a single settlement system for all securities in Argentina.The government in Argentina has mandated that the financial markets establisha single clearinghouse to settle all over-the-counter trades on a DVP basis.The privatesector has started work on this clearinghouse, which has been named ArgenclearThearchitecture for the system has been developed, but operations have notyet started. Argenclear's operations will be limited to securities registered and tradedin the Mercado Electronic© Abierto (MAE), an institutionally oriented market forfixed-rate instruments.ChileMarket infrastructure in Chile has recorded many years of smooth functioning in paymentsand securities markets; howeventhe use of checks, even cashiers checks, meansthat risk management has been different than in many other countries. In the early1980s, the Central Bank of Chile made it clear that the development of market infrastructure,including payment systems, was the responsibility of the private sector.Since then, the banking system has developed an efficient countrywide check-clearingprocess. However, there are no payment instruments with real-time finality, and same-Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub15 Further information is available at cajaval.sba.com.ar.