agustin carstens : dali – mexico ’ s award - winning securities settlement system remarks by mr agustin carstens, governor of the bank of mexico, at the franz edelman prize award, granted to the mexican central securities depositor, s. d. indeval, for developing with the bank of mexico and the instituto tecnologico autonomo de mexico ( itam ) the dali securities settlement system, mexico city, 12 january 2011. * * * susan albin, president of informs ( institute for operation research and the management sciences ). luis tellez kuenzler, chairman of bmv group, stakeholder of s. d. indeval. arturo fernandez, chancellor of the instituto tecnologico autonomo de mexico ( itam ). highly respected dali developing team from s. d. indeval, itam and banco de mexico, to whom this renowned award has been granted. dear guests, ladies and gentlemen : good afternoon. i am very pleased that the institute for operations research and the management sciences granted the franz edelman award to indeval for the excellent job done in developing dali. this recognition is very good news for the mexican financial system. the securities settlement system is key for banco de mexico : we are responsible for promoting the sound development of the financial system, of which the securities settlement system is crucial. one of our objectives as a central bank is to foster the smooth operation of the payment systems. the securities settlement system is not only the largest payment system in mexico, but also an essential component of our liquidity provision mechanism for other payment systems. finally, the securities settlement system is used to compensate and liquidate the monetary policy operations that help us achieve our price stability goal. given the relevance of all payment systems, banco de mexico is constantly striving to adapt the best practices available. in this spirit, we worked together with indeval in the design, construction, and implementation of dali. when we were defining the operating rules for the system, financial intermediaries and indeval wanted a multilateral netting scheme since this would allow them to use the available liquidity, in terms of cash and securities, efficiently. the central bank knew well the advantages of this scheme for a developing market, but also its downsides : if any depositor lacked enough money or securities, it could take hours and complex procedures to redo the multilateral netting process. from banco de mexico ’ s perspective, this

decided to use the model proposed by banco de mexico for its new, ground breaking system, dali. today, we are very fortunate to have the first securities settlement system that offers multilateral netting and near real time settlement, with significant advantages for our financial market. we now have an outstanding securities settlement system that offers excellent services to investors, issuers and intermediaries, and generates trust in our financial system. we believe that the effort we all put into the design, development, and testing of dali was well spent. i congratulate indeval, and the staff from itam and banco de mexico who participated in this project. thank you very much for your attention. bis central bankers ’ speeches