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Electronic Negotiation System - ENS
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The Electronic Negotiation System (ENS), known in Colombia as SEN, is a centralised electronic trading mechanism managed by the Banco de la República (the Central Bank of Colombia). The ENS was authorised by Resolution 0528 of the 21st August 1998 issued by the Superintendence of Securities.
Institutions registered with the ENS will be able to trade government securities, carry out Repos, buy/sell back operations, and carry out inter-bank money market operations amongst legally authorised financial institutions. This can all be achieved in real time through remote working stations.
ENS operates under the following parameters:
- It can be operated with or without previous or subsequent identification of the counterpart, depending on the type of market.
- Risk lines by term and market, can be assigned by agents to their eventual counterparts.
- Quotes are shown to all agents and not just to one agent in particular.
- Automatic transaction closing, when bid and offer of the same instrument are compatible with the amount, term, price, and rate between two different counterparts. The system will inform agents of closed transactions and settlement conditions.
- Automatic restitution of Repos, Simultaneous and Interbank Deposits upon expiry date through an interface with the CSD.
- Record and automatic numeration of all transactions carried out during each session.
- The ENS is connected to the CSD and to the Deposit Accounts System, so that automatic settlement of all transactions under the system can be carried out by the Central Bank.
- Operations undertaken through ENS will be reported to the Inspection or Surveillance Control Authorities in accordance with the current regulations.
- A certificate shall be issued at the close of operations by either of the two parties as proof of the terms and conditions provided under the transaction.
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Securities Market – Sub-Markets
The ENS allows for trading of securities deposited in the CSD (Central Securities Deposit). The Securities Market can be divided into two Sub-Markets, i.e, first tier and second tier markets.
The first tier market involves the trading of government securities by institutions solely authorised by the Ministry of Finance and Public Credit, (market makers or those aspiring to be market makers), the National Treasury, and the Banco de la República.
The system manager will be able to register those agents with the capability to use ENS services such as: credit establishments, fiduciaries, stock exchange brokers, independent security brokers, pension funds managers, the National Treasury and the Banco de la República.
Agents may act through securities intermediaries who have fulfilled the regulations of the operational system.
| Requirements for
Registration |
Institutions wishing to register as
agents should fulfill the following requirements:
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A linking application signed by a properly authorised legal representative. An updated certificate of incorporation issued by the authorities. A notarised copy of the permit to operate issued by the Banking Superintendence or by the Securities Superintendence, depending on the case.
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It is necessary to be linked to SEBRA (Electronic Systems of Banco de la República - ESBRA), to the CSD, and to hold a Deposit Account with the Central Bank.
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A computer system and communication equipment are required, which must meet all the specifications established by the system manager.
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Upon acceptance, it is necessary to enter into a linking contract with SEN, by which the Central Bank is authorised to move automatically deposit accounts and security accounts for closed transactions.
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Agents are solely responsible for the risk inherent in their own transactions through the ENS (validity, effectiveness, settlement etc.). Banco de la República, is not responsible for any transactions undertaken through ENS.
The System Administrator will charge agents and intermediaries the general applicable rates as determined by the Bank’s Administrative Council. Such rates are based on the criteria of the system’s operational regulations.
Please contact the Fiduciary Department of Banco de la República should you have any further queries: : websen@banrep.gov.co
Telephones (571) 3341666, 2816725 or 2867450,
or write to our e-mail addresses: wdcv@banrep.gov.co /websen@banrep.gov.co
Notice
The information contained in these web pages is a summary that should be considered as a reference only. Banco de la República does not take any responsibility for the use that may be given to this information, nor for any effects resulting from its interpretation, or for differences that might arise between these web pages and official printed documentation. Official printed information is available at request.
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