Latinex Group

Clearing, settlement and depositary services

The liquidation model used by Latin Clear today complies with the main recommendations of the Bank for International Settlements (BIS) and others established by the International Securities Services Association (ISSA), among them, to safeguard participants from financial risks, eliminating Operational risk, reducing cost, unifying security standards and creating efficient links in the market. Latin clear uses BIS settlement model 2, of delivery against payment, which corresponds to cash netting and transaction per transaction in terms of values. The clearing and settlement period is made in T + 2. In T + 1 Latin Clear freeze titles and at the beginning of T + 2 the process is completed, through the Panama National Bank’s Clearing House. Each participant has a settlement bank that authorizes Latin Clear, through a contract, to debit them daily through this chamber to carry out its operations. Every day the Panama Stock Exchange (BVP) sends the information of the transactions and update of prices to Latin Clear through an electronic batch. The confirmation of the transactions is given in T and the BVP is responsible for making the confirmations of the stock exchange operations. The confirmations of over-the-counter transactions are made by Latin Clear in T. Latin Clear is also responsible for the deposit of securities.