Background on Vector and its Relevance
Vector is a well-established brokerage firm with over 50 years of experience in Mexico’s financial market. As a key intermediary between investors and the stock exchange, Vector plays an essential role in facilitating investment opportunities for its clients.
SHCP and CNBV Intervention
The Secretaría de Hacienda y Crédito Público (SHCP) intervened through the Comisión Nacional Bancaria y de Valores (CNBV) in the operations of CI Banco and Intecam Banco due to accusations from the US Treasury regarding potential money laundering activities. However, no actions were taken against Vector following these accusations.
Vector’s Assurance to Clients
In a statement, Vector emphasized that all client investments are fully backed by the investment instruments in which they are invested, which are safeguarded by the Instituto para el Depósito de Valores (Indeval) throughout its 50-year history.
Understanding Indeval
The Instituto de Depósito Central de Valores (Indeval) is a crucial component of Mexico’s financial system, responsible for safeguarding, custody, administration, and settlement of all market operations. It acts as a custodian of values under the Bolsa Mexicana de Valores (BMV).
- What does Indeval do? Indeval ensures the custody, compensation, and liquidation of all market value instruments registered in the National Values Registry.
- What types of assets does Indeval manage? Apart from money market and foreign instruments traded through the Sistema Internacional de Cotizaciones, Indeval also manages corporate debt, pension funds, equities, and government debt. According to the BMV, 95% of Indeval’s assets in custody are national, while only 5% are international.
- How much is under Indeval’s custody? Indeval safeguards approximately 40 billion pesos in assets.
Impact on Vector’s Clients
All buy-sell operations conducted through a brokerage firm, like Vector, are directed to Indeval. This ensures that clients’ assets remain secure and unaffected by the recent accusations against other financial institutions.
AMIB’s Role
The Asociación Mexicana de Intermediarios Bursátiles (AMIB) confirms that client assets are protected when held by Indeval, the compensation chamber. This assurance further strengthens Vector’s commitment to its clients’ interests.
Key Questions and Answers
- Q: What is the role of Indeval in Mexico’s financial market? A: Indeval is responsible for safeguarding, custody, administration, and settlement of all market operations in Mexico’s financial system.
- Q: What types of assets does Indeval manage? A: Indeval manages money market instruments, foreign instruments, corporate debt, pension funds, equities, government debt, and more.
- Q: How much is under Indeval’s custody? A: Indeval safeguards approximately 40 billion pesos in assets.
- Q: Are Vector’s clients’ assets safe amidst recent accusations? A: Yes, all client investments are fully backed by investment instruments safeguarded in Indeval, ensuring their security.
