CHILE: Bolsa de Comercio de Santiago Amends Regulations Forward Transactions, Short Sales and Lending of Shares.

Friday July 24 2015

The Board of the Stock Exchange Santiago has announced that it has agreed to amend the regulation of the futures market, short selling and Loans contained in the Manual of Operations in Actions, incorporating new elements in an effort to meet the needs of the market, for which purpose has issued a Regulatory Circular which has been approved by the Comisión Nacional de Valores.

Included in the modifications are the following:

1. Modification of the rule to discharge short sale transactions:-the sale offers associated with short sale transactions may be fully transferred according to a price range that will be validated by the system, replacing the validation of the rule to the higher for this type of operation.
2. Modifying list of puttable instruments to perform operations in the long term, short selling and lending.
3. Incorporation of operations of short selling and loans allows the realization of short sale transactions and loans condition settlement payable today (PH) and tomorrow payable (PM), which are added to the current short sale transactions and loans with regular cash settlement condition (CN).
4. Modification of the methodology for calculating guarantees requirement, by implementing the methodology of value at risk (VaR).
5. Modification of the position on the heritage limit, a limit of risk on the liquid assets of the broker calculated on the basis of VaR methodology
6. Modification of the diversification limit of guarantees: The maximum volume limit on guarantees per share is replaced by a limit diversification of equities, corporate bonds and term deposits bank.
7. Incorporation the concentration limit positions & guarantees by customer markets for Operations and Short Term Sale.

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