Settlement process - Uruguay
Standard settlement cycles vary from TD to TD+2, this varies depending on the counterparty involved. Government debt can settle on same day.
Although there is no standard settlement timeframes the following cycles usually apply:
Dematerialised government debt
On Trade Date, the trade is done at the Stock Exchange or Over-the-Counter.
- The local broker or counterparty confirms the trade details to the investor, who confirms them to CBL.
- CBL sends a SWIFT confirming the trade details to its local depository.
- CBL's local depository pre-matches the trade details by phone with the counterparty.
- Receipts and deliveries settle through CBL's local depsoitory's account at the Central Bank.
- RVP/DVP is performed real time through the Central Bank's proprietary system.
Physical certificates are transferred between parties and payment is made electronically through the Electronic System of the Central Bank.
Receipt and delivery of physical securities takes place at the CBL local depository’s counter.
- For receipts, CBL’s local depository will wait until they receive the certificates before effecting the payment.
- For deliveries, CBL local depositor waits until they receive the real-time credit of funds before delivering the certificates.
Most securities in Uruguay are issued in physical form and in bearer form.
Dematerialised government debt is registered immediately upon book-entry transfer within the Central Bank system and is registered in the name of the account holder.
Stamp duty does not apply in Uruguay.
Penalties (buy-ins etc.)
There are no formal buy-in procedures in Uruguay.
The Uruguayan peso (UYU) is a fully convertible currency. There is no restriction on foreign exchange and can be done against any currency.