Activity

The Bolsa de Valores de El Salvador (BVES) clears its trades through the Central de Depósito de Valores (CEDEVAL).
CEDEVAL is the central securities depository of El Salvador and plays a crucial role in the post-trade process. Its responsibilities include:
* Custody and Administration of Securities: CEDEVAL holds and manages the securities traded on the BVES, ensuring their safekeeping.
* Clearing and Settlement: CEDEVAL is responsible for the clearing (confirming and matching trade details) and settlement (the exchange of securities for funds) of transactions executed on the BVES. This ensures the orderly and efficient completion of trades. They operate a system that allows for the transfer of securities between accounts at the time a transaction is completed (delivery versus payment).
* Book-Entry System: CEDEVAL manages the electronic book-entry system for securities, which immobilizes or dematerializes physical certificates, making trading and settlement more efficient and secure.
* Interface with Payment Systems: CEDEVAL facilitates the monetary settlement of trades, often interfacing with the national payment system.
* International Linkages: CEDEVAL has agreements with international central securities depositories, which facilitates cross-border transactions, allowing local investors to trade international securities and foreign investors to trade local securities more easily.
In summary, CEDEVAL acts as the central counterparty and settlement agent for the BVES, providing the necessary infrastructure and processes to ensure the smooth and secure clearing and settlement of securities transactions in El Salvador.

Video courtesy of Interactive Brokers

Video courtesy of Interactive Brokers