Latin American Capital Markets

386 A. M. CORCORAN, R. B. HOBSON, G.J. KUSERK, K. K.WUERTZ.AND QWESTInterestingly, by virtue of a National Monetary Council resolution, only instrumentsallowed by the central bank can be traded over the counter; and these arerequired to be registered with the Central Securities Depository or an exchange (exceptfor those OTC products subject to CVM jurisdiction). BM&F offers a registrationfunction and provides for transparency and security by also providing a disclosed,competitive auction market and collateral management for such OTC transactionsand, where there is an active dealing market, a guarantee. A recent statistic from themarket indicates that total open interest in swaps and flexible options is 4,078,074, ofwhich 465,131 are not guaranteed.ReferencesCPSS/IOSCO. 2001. Recommendations for Securities Settlement Systems, CPSS/IOSCO (November). At www.bis.org.Commodity Futures Trading Commission (CFTC). 1996. Fenchurch Capital Management.. 1999a. Futures Exchange and Contract Authorization: Standards and Proceduresin Selected Countries. (August). http:/www.cftc.gov/oia/oia_publications. htm. 1999b. Survey on Regulation of Over-the-Counter (OTC) Derivatives, CFTCOffice of International Affairs (March), at http://www.cftc.gov/oia/oia_publications.htm#Survey.. 2001. Exchange-Traded Derivatives in Developing Capital Markets (March).Corcoran, Andrea M. 1994. Prudential Regulation of OTC Derivatives: Lessons fromthe Exchange-Traded Sector In G. Ferrarini, ed., Prudential Regulation of Banksand Securities Firms. Kluwer Law International.. 2000.The Uses of New Capital Markets: Electronic Commerce and the Rulesof the Game in an International Marketplace, 49 American University Law Review581 (February): p. 585.. 2002. Cross-Border Financial Transactions: 25 Questions to Consider in MakingRisk Management Decisions. In G. Ferrarini, ed., Capital Markets in the Age ofthe Euro. Kluwer Law International.Corcoran and Ervin. 1987. Maintenance of Market Strategies in Futures Broker Insolvencies:Futures Position Transfers from Troubled Firms. Washington and Lee LawReview 44(849, summer).Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub