Mexican Settlement Model
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Mexican Settlement Model. Gerardo Gamboa. April,2013. Regulators. Financial Participants. Settlement Participants. Ministry of Finance. Banking Commission. Central Bank. Trading Mechanisms. Exchanges. Central Bank. Price Vendors. Facilitators. Infrastructure. History.

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Mexican settlement model

Mexican Settlement Model

Gerardo Gamboa

April,2013


Settlement participants

Regulators

Financial Participants

Settlement Participants

Ministry of Finance

Banking Commission

Central Bank

Trading Mechanisms

Exchanges

Central Bank

Price Vendors

Facilitators

Infrastructure


History

History

Enhance the Mexican financial markets

BIS establishes

Payment Systems Principles and Best Practices


Bank for international settlements dvp models

Bank for International Settlements DvPModels

  • Model 1:

    • Real-time gross settlement

  • Model 2:

  • Netting of funds

  • Model 3:

  • Netting of securities and funds


Model 1 real time gross settlement

Model 1 Real-Time Gross Settlement

Borrow

Bank A

Transaction:

500 securities =

$2,000

R9b1k

Bank B

Bank C

100

$500 USD

$500 USD


Model 1 real time gross settlement1

Model 1 Real-Time Gross Settlement

Transaction:

500 securities =

$2,000

Liquidity

and real-time

Efficiency

Simplicity


Model 2 netting of funds

Model 2 Netting of Funds

Model 2

Model 1

Transaction:

500 securities =

$2,000

Liquidity

and real-time

Liquidity

Efficiency

and real-time

Simplicity

Efficiency

Simplicity


Model 3 netting of securities and funds

Model 3 Netting of Securities and Funds

Netted

A

Bank A

B

C

Transaction:

500 securities =

$2,000

R9b1k

Abuys 100 X $500 to B

At the end of the settlement cycle

Asells 100 X $500 to C

Bank C

Bank B

100

$500 USD


Model 3 netting of securities and funds1

Model 3 Netting of Securities and Funds

Model 1

Model 3

Liquidity

and real-time

Efficiency

Liquidity

Simplicity

and real-time

Efficiency

Liquidity

and real-time

Simplicity

Efficiency

Model 2

Simplicity


Dali model

DALI Model

Model 1

Model 3

Liquidity

and real-time

Liquidity

and real-time

Efficiency

Model

Efficiency

Simplicity

Simplicity

Liquidity

and real-time

Liquidity

and real-time

Efficiency

Efficiency

Model 2

Simplicity

Simplicity


Mexican model

MexicanModel

Continuous

settlement

Attain

organizational

objectives

World-class

Model 3

system


Settlement system

Settlement System

ISO 15022

Indeval Financial Protocol

Processes all transactions!

Match Engine

Securities Management

Funds Operations

Securities Operations

International Operations

Settlement

Pre-settlement

Risk Management

Custody

Clearing

Collateral Management

Safekeeping

Central Bank

Link


Settlement system1

Settlement System

Settlement

Pending

To settle

To settle

To clear

Pending

Pre-settlement

Clearing


Settlement system2

Settlement System

Settlement

1,200

$83,000

DvP

Pre-settlement

Clearing


Settlement system3

Settlement System

Pre- Settlement

Settlement

Controlled Accounts

NamedAccounts

Clearing


Features included

Features Included

Model 1

Model 3

Versatile

Flexible

Real-Time

Efficiency

Highly Efficient

Hibrid

Configurable pre-settlement module

Objective functions


Since the first day of dal

Since the First Day of DalĂ­

270

Clearing and settlement process

times each and every business day

67,000

times each year

Every settlement cycle being

Mission critical


Dal statistics

DalĂ­Statistics


Dali benefits

Dali Benefits

USD 250 billion settled daily

52% reduction

USD 130 billion

Very conservative

intraday opportunity cost

USD 240 million in savings in just 18 months


Dali record

Dali Record

In just one minute:

USD 75 billion settled

22,000 data base records

10,000 messages sent


Mexican settlement model

Mexican Central Securities Depository

Thank you

April, 2013


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