Latin American Capital Markets

524 FOCUS ON CAPITALdefaulting of firms and derivatives markets, 368deferred net settlement systems, 248deficits, government budgetbond markets, 308, 327Latin American difficulties with, 7,92, 114,305and poor macroeconomic policy, 95defined-contribution (401 (k)) plans, 134, 144delivery for derivatives contracts, 348, 360n34,382delivery vs. payment (DVP)bond markets, 308, 319-20Latin America, 253,255,257,258,260market importance of, 243demand and supply issues, 93, 144, 345^46, 347,502-3dematerialization of securitiesbond markets, 308, 320Latin America, 253,256,258,260and technology, 110Demirguc-Kunt,A., 5-6, 102democracy and markets, 425,430-31demutualization of exchangesAmsterdam, 289-90Australia, 287-88capital market environment 160conflicts of interest, 271,272,276-79derivatives markets, 362flexibility, 46globalization, 41,247,272-73for Latin America and Caribbean, 290-92oversight, 374process overview, 269-72reasons for, 272-76regulatory solutions, 279-84Sweden, 284-87deposit insurance facilities in Latin America,100-102Deposito Central deValores (DCV) (Chile),258Deposito Centralizado deValores de Colombia(DECEVAL), 259depository systemsADRs, 14-15,43-44,55-56,252,497bond markets, 308, 320and capitalization share, 41 -42,43See also central securities depositories(CSDs); clearing and settlementDepository Trust and Clearing Corporation(DTCC), 192,249deregulation of marketscapital markets environment, 160corporate bond market, 324-25derivatives markets, 335developing economies' trends, 108-9exchange rate issues, 302institutional investors, 141-42vs. self-regulation, 380derivatives marketsbond markets, 298, 318in Brazil, 383-86capital market trends, 110andCCP, 191clearinghouses, 243CME and SIMEX offset arrangement,192-94day trading risks, 82design of, 341-52history and current trends, 335-38identification of need for, 338^41OM, 285-86oversight and self-regulation, 355, 362-63,373-80policy recommendations, 381-83regulation, 340, 352, 355-73, 385Scandinavian futures exchanges, 286-87technology impact, 246,248, 347Deutsche Borse, 189-90, 198,251,404developed economies, human capital in, 469-72,473. See also Canada; Europe; United Statesdeveloping economiesaccounting standards, 214alliances and partnerships, 46-^47current status of, 39-41depository receipts, 14-15financial stability, 219globalization strategies, 59infrastructure improvements, 240institutional issues, 107-12and Internet, 66, 69,86long-term credit availability, 6market intermediaries, 91-92regulation issue, 40,53,68, 148self-regulation, 57share of capitalization, 41 —42shareholder protection, 438Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub