Immobilization and dematerialization

Macro titles

A macro title is a single certificate that totally or partially represents an issue of securities. This instrument called “macro title” is immobilized in the Latinclear vault with the advantage that the transfer of certificates is eliminated and therefore helps to eliminate the risk that this entails. At the end of the day, an investor receives from his Participant proof that he is the owner or holder of a security and periodically receives an account statement with details of his securities from his participant.

For the issuing company, issuing macro titles has enormous advantages, such as the notable reduction in the costs of issuance, vaults, printing of certificates (sheets), insurance, and other intangible costs involved in any securities issuance. It is also possible to minimize the risks of theft, loss or falsification of the titles since the macro title is a negotiable instrument valid only for the issuer that signed the corresponding contract with Latinclear.

Securities administration services

As a centralized securities depository, Latinclear is supported by a securities custody and administration system (SICUS), to manage the large number of physical certificates that still exist in the market.

Latinclear collects interest, capital, amortizations, and dividends through its electronic clearing and settlement system with the Clearing House of the National Bank of Panama.

Payment is made by Latinclear with electronic funds to its participants, thus eliminating the “float” incurred in the check system.

Clearing and settlement

This is a great advance in the Panamanian securities market, since the use of checks was eliminated in the monetary settlement system in the market, where an electronic funds system is now used, which provides liquid funds available on the same day to its participants.

Monetary settlement is carried out in T+2 for all securities, both public and private sector, fixed income or variable income.