Banco de la República de Colombia Teams Up with Montran to Introduce New Central Securities Depository

Montran’s newly launched Central Securities Depository (CSD) platform at Banco de la República de Colombia is poised to revolutionize Colombia’s capital markets by enhancing efficiency, risk management, and transparency. José Escobar, General Manager of Montran LATAM, expressed excitement about the collaboration, emphasizing the platform’s potential to drive transformation in the country’s financial landscape through streamlined processes and integrated risk management tools.

The newly launched Central Securities Depository (CSD) platform by Montran at Banco de la República de Colombia marks a significant milestone in the modernization of Colombia’s financial market infrastructure. Specifically designed to handle custody, clearing, and settlement of public debt securities transactions, the platform plays a pivotal role in supporting the central bank’s monetary policy initiatives.One of the standout features of the platform is its emphasis on interoperability, achieved through the utilization of ISO 20022 messaging standards. This interoperability enhances connectivity and facilitates seamless communication between different systems and market participants, thereby promoting efficiency and transparency in the capital markets.

The platform’s optimized processing capabilities for corporate actions streamline complex event handling, including dividend payments, mergers, and acquisitions. This automation reduces reliance on manual intervention, mitigates operational risks, and guarantees the prompt and precise execution of corporate actions. Consequently, market participants benefit from enhanced efficiency, transparency, and risk management in the handling of public debt securities transactions within Colombia’s capital markets.⬤

In addition, the integration of global identifiers such as BIC (Bank Identifier Code), IBAN (International Bank Account Number), and ISIN (International Securities Identification Number) codes further enhances transaction processing efficiency and data quality. These standardized identifiers facilitate precise identification and tracking of securities, counterparties, and accounts, enabling smoother transaction flows and reducing the likelihood of errors or discrepancies.

Marcela Ocampo, Executive Manager at Banco de la República de Colombia, underscored the significance of the new infrastructure in promoting the adoption of international standards and best practices. By establishing a robust foundation for custody and compliance processes in public debt securities management, the platform aims to elevate Colombia’s market infrastructure to global standards and foster greater integration with international financial markets.

The successful launch of the Central Securities Depository (CSD) platform at Banco de la República de Colombia signifies a major leap forward in financial innovation and the integration of capital markets in Latin America. By implementing cutting-edge technology and adhering to international standards, Colombia is poised to emerge as a prominent player in the global financial landscape. This development underscores the country’s commitment to modernizing its financial infrastructure and fostering greater connectivity with international markets, ultimately contributing to economic growth and prosperity in the region.

Marcela Ocampo, Executive Manager at Banco de la República de Colombia, underscored the significance of adopting international standards and best practices, noting that the new infrastructure would facilitate more efficient custody and compliance processes in public debt securities management. This initiative aims to establish a robust market infrastructure in Colombia while fostering integration with various financial market participants, paving the way for financial innovation and regional integration of capital markets across Latin America.