New Infrastructures for OTC Derivatives Central Repository for Forward Contracts November 2011

1. New Infrastructures for OTC Derivatives Central Repository for Forward Contracts November 2011

2. DCV in figures • In detail, Central Repository for Forward Contracts • The Derivatives Market in Chile • Overview • Central Repository for Forward Contracts • Background • Current issues with existing operating procedures • Features of the new service • Service model • Some statistics • Phase 2 & Phase 3 • Conclusions

3. DCV in figures • Chile’s national CSD with 18 years of experience in the market • 176 participants • Shareholders: • Pension Funds 27% • Banks 27% • Santiago Stock Exchange 21% • DTCC holding ILLC 10% • Life Insurance Cos. 9% • Electronic Exchange 5% • Others 1% • US$ 250 billion under custody in local securities • Transactions registered in 2011 (sept): US$1,037 billion • Transactions registered in 2011 (sept): 1,2 million • Through DCV Registros (subsidiary) maintains Corporation’s shareholders registries • Role of NNA, issuing ISINs for Chilean securities • International custody services for local participants investing abroad

4. The Derivatives Market in Chile Overview: • Active OTC derivatives market in Chile • Forwards (82%) • Swaps (18%) • Currencies in Forwards Contracts • CLP - US dollar (95%) • Euro – US dollar (2%) • US Dollar – Yen (2%) • Others (1%) • Volumes in Forwards Contracts • Notional amounts: US$ 1,5 billion (daily average) • # of CLP – US dollar contracts: 70,000 annual basis • Potential new gross income • 2012 USD 100,000 • 2013 USD 150,000 4

5. Central Repository for Forward Contracts Background: • The idea was originated from the need to provide a comprehensive and centralized solution for pension funds / banks regarding their forward contracts: subscription, registration and custody • This is an opportunity to generate a new source of funds for DCV • We worked together to define the scope, objectives and commitments • An agreement between Pension Funds and Banks took place in March 2010; this became the business reason for the project • The potential market considers the rest of current participants… and also their institutional customers

6. Central Repository for Forward Contracts Current issues with existing operating procedures • Lack of standard procedures • Too many administrative procedures (Too much time-consuming paperwork) • Need to keep updated records of representatives authorized to sign the contracts • Receiving contracts with inaccurate data • Receiving signed contracts several days after the respective operations agreements • Involved many operational and financial risks • High operating costs 6

7. Central Repository for Forward Contracts Features of the new service • Electronic and centralized subscription, registration and custody • Official legal record • Digital certificate with an advanced electronic signature • Control of expiration dates • On-line information (100% reliable) • Pension Fund Services: Daily reports to the Pension Funds Superintendence • STP with the Electronic Stock Exchange

8. Central Repository for Forward Contracts

9. Central Repository for Forward Contracts Some Statistics • 21 Participants have adhered the service • 8 Participants operating • 13 Participants in the road to activate their accounts • Up to september 984contracts registered • Up to september 161contracts matured

10. Central Repository for Forward Contracts Phase 2: • Registration of contracts between a participant and their corporate customers • Expanding to other types of Forwards contracts and Swaps • Payment instructions to banks • Supporting collateral management Phase 3: • Interconnection with a CCP, managed by banks

11. Central Repository for Forward Contracts Conclusions: • Service started on last March 15th • Smooth incorporation of new participants • Aims to build a modern, standard and competitive infrastructure to provide high efficiency and safety levels to the market

12. THANK YOU!