Citibank offers securities services products in Ecuador.NEW YORK--(BUSINESS WIRE)--March 28, 1995--Citibank, N.A. is pleased to announce the official opening of a securities services product capability in Ecuador. The Citibank branches in Quito and Guayaquil offer multi-site safekeeping Safekeeping The storage of assets or other items of value in a protected area. Notes: Individuals may use self-directed methods of safekeeping or the services of a bank or brokerage firm. , settlement, reporting, income collection, cash and securities accounts and corporate action services to international investors. The Capital Markets Law in Ecuador took effect in May 1993 providing a regulatory framework to integrate the securities markets in the country. Foreign investment in Ecuador is regulated by Decree No.415 and permits non residents to invest in any sector of the national economy. The Consejo Nacional de Valores (C.N.V), is a regulatory agency regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. that operates through a Superintendency Su`per`in`tend´en`cy n. 1. The act of superintending; superintendence. of Companies which oversees the operations of all non-financial institutions. There are two official exchanges in Ecuador, the Bolsa de Valores de Quito and the Bolsa de Valores de Guayaquil. Trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. on the two exchanges reached US$761 MM in 1994, a 263% increase from the previous year. The Guayaquil exchange is the most active, accounting for approximately 73% of trading volume during 1994. Approximately 115 stocks are currently listed on the two exchanges. Brokerage houses are prohibited by law from trading listed equities on the Over-the-Counter (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). ) market. The majority of trading activity takes place on the OTC market between financial institutions. Short-term instruments issued by the private sector are most actively traded in the interbank over-the-counter market over-the-counter market Trading in stocks and bonds that does not take place on stock exchanges. Such trading occurs most often in the U.S., where requirements for listing stocks on the exchanges are strict. with all securities represented by a physical certificate. Among the most actively traded instruments are the Polizas de Acumulacion (sucre and Dollar denominated), which are similar to Bank Certificates of Deposits. A second major group of traded instruments are "Avales", which are sold to private investors. The market for commercial paper and long-term corporate bonds has increased during the past year. Public sector debt is offered by weekly Dutch auction Dutch Auction An auction where the price on an item is lowered until it gets its first bid, and then the item is sold at that price. Notes: The U.S. Treasury (and other countries) uses a Dutch auction when it sells securities. of sucre denominated Treasury Bills or Bonos de Estabilizacion Monetaria (BEMs). Long-term dollar-denominated government bonds (Bonos de Gobierno) are offered via a centralized trading mechanism, Dutch Auction with the Central Bank of Ecuador The Central Bank of Ecuador (Spanish: Banco Central del Ecuador) is the central bank of Ecuador. See also
Equity trading is currently limited as most Ecuadorian companies are government or family owned. The Ecuadorian securities market is entirely physical. A central depository does not currently exist in the country, and the establishment of a depository is not anticipated prior to late 1996. Citibank provides a complete range of cross-border custody and clearing services to institutional clients around the world. Citibank's securities services include settlement, safekeeping, interest and dividend collection, tax reclamation, corporation action notification, cash management, foreign exchange, recordkeeping, reporting and information management, and global securities lending Securities Lending When a brokerage lends securities owned by its clients to short sellers. Notes: This allows brokers to create additional revenue (commissions) on the short sale transaction. . Citibank's custody business operates through a proprietary network of Citibank branch offices in 47 countries and serves customers in 52 markets. Citibank has more than 80,000 employees and operations in 94 countries worldwide. CONTACT: Citibank, N.A., New York Michael Williams, 212/657-6658 or Citibank, N.A., Quito, Ecuador Yolanda Soria, (593-2) 503-975 |
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