11

Caja de Valores S.A.Caja de Valores S.A.Central Depository in ArgentinaCentral Depository in Argentina

Securities Recording Model for the Beneficial OwnerSecurities Recording Model for the Beneficial Owner

Efrain CarvajalEfrain Carvajal

New York, October 9, 2007New York, October 9, 2007

ACSDALeadership Forum

ACSDALeadership Forum

22

The Argentinean Stock Market SystemThe Argentinean Stock Market System

CC NN VVBCBABCBA

MERVALMERVAL

CVSACVSA

33

The Argentinean Capitals MarketThe Argentinean Capitals Market

Ministry of Economics

National Securities Commission

Central Bank

CRYLSettlement system

for certainpublic instruments

OTC MarketFor public instruments

Argenclear

MervalStock

Market

CSD

Banco de Valores

44

Registration Agent

Main ServicesMain Services

Collective Deposit

Technological Services

Registration of securities in accounts and auxiliary accounts for the beneficial owner

Direct services to the shareholders

IT services for the Argentinean Stock Market system

55

Established - November, 1974Public company with domestic private equity Legal Basis

Law 20.643Regulatory Decree 659/74Operational RegulationsDecree 2.220/80

Collective Deposit – Legal FrameworkCollective Deposit – Legal Framework

66

Argentinean Stock or OTC brokers; or foreign Stock or OTC brokers Argentinean banks and financial institutions; and foreign banks and financial institutionsMerval and ExchangesDepartment of FinanceAFJPs -Insurance CompaniesFCI Business DepositoriesForeign Investment FundsForeign Securities Depositories

Collective Deposit - DepositorsCollective Deposit - Depositors

77

Account Structure

Depositor DepositorDepositor

Customerauxiliaryaccount

Customerauxiliaryaccount

• The systemrecords the data of the titleholders.

• Separates the custodian’s equity from that of the depositors and of the customers.

Customerauxiliaryaccount

Customerauxiliaryaccount

Customerauxiliaryaccount

Customerauxiliaryaccount

88

• Equity separation

• Quarterly distribution of statements by mail– Report with the balances of the assigned accounts and all transactions during

the last quarter

• Return of Quarterly Reports– 1st. Auxiliary account branded– 2nd. Auxiliary account frozen

• Other reasons for freezing– Legal order: seizure– Covenants and warranty deeds - collateral– Economic entitlements on the shares: debt collateral

Marcado

Auxiliary Account AspectsAuxiliary Account Aspects

BloqueoAuxiliary Account

99

Characteristics of Registration for the Characteristics of Registration for the Beneficial OwnerBeneficial Owner

Segregation Broker’s equity is separated Broker’s equity is separated from the CSD’sfrom the CSD’s

Control Mail delivery to the address Mail delivery to the address filed with the CSDfiled with the CSD

Security Freezing of the account Freezing of the account when the statement is not when the statement is not received received

1010

Benefits to the Beneficial Owner from the Benefits to the Beneficial Owner from the RegistrationRegistration

Certificate of Holdings

Issued by the CSD, in the Issued by the CSD, in the beneficial owner’s namebeneficial owner’s name

Legal Situation

Determined by the CSD´s Determined by the CSD´s records, without the broker’s records, without the broker’s participationparticipation

Exercise of Rights

Entitlement of the beneficial Entitlement of the beneficial owner, in function of CSD owner, in function of CSD recordsrecords

1111

Collective Deposit – Make up*Collective Deposit – Make up*

Depositor accounts 607

Assigned auxiliary account 2.600.000

Face Value of Custody 336.150 MM

*Al 31-08-07*Al 31-08-07

1212

Control ProcessesControl Processes

Internal Control: separation of functions, levels of authority.

Quality Management: follow-up, supervision and measurement.

IT Controls: access restrictions, safekeeping of the information, contingency plan.

Audits: operational, IT, quality.

1313

Business ContinuityBusiness Continuity

Lack of available systemsLack of available systems Alternate equipment and linksAlternate equipment and links Contingency plan Contingency plan Distribution of formsDistribution of forms

Non-observance of Non-observance of deadlines and formsdeadlines and forms

Equipment and training of Equipment and training of personnelpersonnel Supervision of activitiesSupervision of activities

Assignment faultsAssignment faults

Programmed and manual controls Programmed and manual controls of completeness and accuracyof completeness and accuracy Distribution of functionsDistribution of functions Differences in the levels for the Differences in the levels for the authorization of transactionsauthorization of transactions Access restrictionAccess restriction

1414

International LinksInternational Links

Euroclear

Euroclear

Clearstream

Clearstream

DTC

DTC

CBLC CBLC

Cavali Cavali DCV

DCV Indeval Indeval

Iberclear Iberclear

1515

ISO Certification ISO Certification 9001 - 20009001 - 2000

Customer ServicesCustomer Services

Participant ServicesParticipant Services

InternationalInternational

1616

International InitiativesInternational Initiatives

ACSDAACSDAAmericas’ Central Securities Depositories AssociationAmericas’ Central Securities Depositories Association

ANNAANNAAssociation of National Numbering AgenciesAssociation of National Numbering Agencies

UNIDROITUNIDROITInternational Institute for the Unification of Private LawInternational Institute for the Unification of Private Law

The Hague ConventionThe Hague ConventionHague Convention on Law Applicable to Certain Rigths in Hague Convention on Law Applicable to Certain Rigths in respect of Securities held with an Intermediaryrespect of Securities held with an Intermediary

1717

Thank you very much!!Thank you very much!!