“Cross-border CSD Links”

New York, October 10, 2007

Ricardo ChongInternational Operational Executive

ACSDA Leadership Forum

I.I. General InformationGeneral Information

II.II. Peruvian Securities Market EvolutionPeruvian Securities Market Evolution

III.III. Market OverviewMarket Overview

IV.IV. Peruvian MarketPeruvian Market

V.V. CAVALI as a supplier solutionsCAVALI as a supplier solutions

a. Case 1: Example of Settlement Cycle

b. Caso 2: Peruvian securities abroad

c. Case 2: Foreign securities in local market

d. Case 3: Foreign IPOs in local market

e. Case 4: As a Partner

VI.VI. Final ReflectionsFinal Reflections

Index

• Cavali S.A. ICLV (CAVALI) is a Central Securities Depositary (CSD)

holding US$ 50,6 billion in securities.

• Settles an average of $40 million US daily in debt and equity

securities transactions from Lima’s Stock Exchange (BVL).

• Maintains, through book-entry records, 40.79 per cent of all listed

securities in the BVL.

• Cavali has over 355,722 accounts registered.

• Provides services to 279 issuers and keeps records of 815

securities.

• Holds a direct participant account at the Depository Trust Company

(DTC), which allows the simultaneous listing of 62 securities on the

Peruvian and U.S. markets.

General Information*

*As of July, 2007*As of July, 2007

Peruvian Securities Market Evolution

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

19901991 199219931994 199519961997 199819992000 200120022003 20042005

US$ Millions

0

1,000

2,000

3,000

4,000

5,000

6,000

Lima Stock Exchange Index

Base 12.1991=100

Traded Value Market Capitalization Lima Stock Exchange Index

• Economic Growth (PBI 7.6 per cent)• New participants in the market

– Foreign Investment– News Broker– Pension Private Funds (AFPs)

• Need of financial instruments for institutional investors

Market Overview:

Securities issue on the U.S. MarketSecurities issue on the U.S. Market

Peruvian securities issue on the U.S. Market:

– Credicorp– Southern Copper

Corporation– IFH Peru– Intergroup Financial

Services

Junior Enterprises’ Securities:

– Peru Copper– Vena Resources– Candente Resources– Panoro Minerals– Norsemont Mining Inc

Foreign Securities:– Amazon.com– Cisco Systems– Citigroup– Diamonds – Walt Disney– Enron– Exxon Mobil– General Electric– Intel– Microsoft– Newmont– Oracle Corporation– Standard & Poors– Yahoo – Goldmarca– Chariot Resources– Corrientes Resources– Minera Andes– Quest Minerals and

Mining– Plexmar Resources

– Wealth Minerals

– BZP Energy

– Coca Cola

– Banco Bilbao Vizcaya

– Banco Santander Central Hispano

– Curis

– Ishares Silver Trust

– Micron Enviro Sys

– Nortel Networks

– Northwest Airlines

– Powershares

– Procter & Gamble

– Pure Biofuels

– Time Warner

– Travelers Company

Peruvian Market: Peruvian Market: Holdings Valuation on CAVALIHoldings Valuation on CAVALI

0

10,000

20,000

30,000

40,000

50,000

60,000

Debt instrument 957 1,605 2,763 3,452 4,596 4,477 5,100 6,104 8,206 9,310 11,976

Equity securities 6,247 4,373 5,723 4,891 5,107 6,082 7,854 9,985 14,265 21,805 38,652

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007*

US$ Millions

* As of July

Peruvian Market

Peruvian and

Foreign Issuers

Direct And Indirect

Participants

Peruvian and

Foreign Investors

Institutional Investors

Central Bank

Lima Stock Exchange

Fundamental premise:

• Provide solutions to peruvian securities market users:

Peruvian Market

Brokers Banks

Andes Securities S.A.B. S.A.C Banco Continental

Cartisa Perú S.A.B. Banco de Crédito del Perú

Centura S.A.B. S.A. Banco de la Nación

Citicorp Perú S.A.B. Banco Financiero del Perú

Continental Bolsa S.A.B. Bank of Boston Sucursal Perú

Credibolsa S.A.B. Citibank del Perú

Grupo Coril S.A.B. S.A. Corporación Financiera De Desarrollo-COFIDE

Intercapital S.A.B S.A Interbank

Inversión Y Desarrollo S.A.B. S.A. Scotiabank Perú S.A.A.

Juan Magot & Asociados S.A.B.

Latino Americana S.A. S.A.B. Pension Private Funds

Mgs Y Asociados S.A.B. AFP Horizonte

Promotores e Inversiones Investa S.A. S.A.B. AFP Integra

Provalor S.A.B. S.A. Prima AFP S.A.

Scotia Bolsa S.A. Profuturo AFP

Seminario Y Cía. S.A.  

Solfin S.A.B.  

Stanford Group Perú S.A.B.  

Caso 1: Example of Settlement Cycle

  T T+1 T+2 T+3 T+4 T+5 T+6

Trade Day              

Settlement Date             

Forward Settlement Day             

Overdue Settlement Day             

Now

Tomorrow

Case 1: Peruvian securities abroad

NYSELima Stock Exchange

Benefits:• Peruvian Issuer has access to more developed markets

– Better prices, more liquidity, exposure• Keep centralized custody

DTC

Peruvian issuer

NYSELima Stock Exchange

Stockbroker

Benefits:• Bigger supply of securities (foreign ones) in local marketplace

• Risk diversification for investors in local market

Case 2: Foreign securities in local market

DTC

Multilateral Institution

Canada Exchange

Case 3: Foreign IPOs in local market

Institutional Institutional InvestorsInvestors(example. (example. Intergroup)Intergroup)

Benefits:• Bigger supply of classified securities (Pension Private Funds) in local marketplace

• IPOs from “multinational” issuers simultaneously in different marketplaces (only one register)

• Centralized custody for local investors

DTC

CAVALI’s participation:

Creation of Entidad de Depósito de Valores of Bolivia

Consulting for El Salvador, Dominican Republic

Bilateral Agreements

Caso 4: As a Partner

Benefits:• Development of CSDs according to market evolution and laying the foundations to the future

• Future exchange of securities among markets, benefiting local marketplaces

• Exchange of knowledge to develop products and services

• The CSDs responsibility is to become expert providers of needed The CSDs responsibility is to become expert providers of needed solutions. The challenges: solutions. The challenges:

– Corporate events,Corporate events,– Taxes, Taxes, – Supervision.Supervision.

• Collaboration among CSDs will allow us to manage and diversify Collaboration among CSDs will allow us to manage and diversify the risks of the market.the risks of the market.

Final Reflections

THANK YOU

New York, October 2007

Ricardo ChongInternational Operational Executive

ACSDA Leadership Forum