The Value Chain of the foreign portfolio investment process in Colombia is made up of:

Central securities depositories: Infrastructure provider where the clearing and settlement of transactions are carried out and the respective book entries of securities transactions are made. In most cases, at the time of the transaction, the securities are registered in the foreign portfolio investor subaccount created under the deposit accounts of the local broker dealers. Then, for the purposes of its custody, the direct depositor is changed to the foreign portfolio investor account managed by the local custodian.

Central counterparty: Infrastructure provider where the clearing and settlement of securities transactions with or without a central counterparty are carried out. 

Clients / Users / Foreign Portfolio Investor / Counterparties: Natural persons or legal entities with non-resident status in the country, who orders the execution of an operation. They can be individuals, companies, funds, pension funds, etc. 

Foreign exchange trading and registration systems: Infrastructure provider where foreign exchange market intermediaries carry out the exchange of currencies necessary for the execution of the operations instructed by the foreign portfolio investors in the local market, whether these are for monetization (investment or inflow of resources) or repatriation of resources (outflow or divestment).

Global custodians: These are the clients of the local custodians, who, under a sub-custodial contract, inform the local custodian of the characteristics of the operations instructed by the foreign portfolio investor.

International brokers: Entities that instruct local broker dealers to carry out operations on behalf of the foreign portfolio investor or in their own position.

Local broker dealers: Those who execute the instructions of the foreign portfolio investor which may arrive directly, through an electronic order routing system connected with the international broker, through particular instructions of the international broker or through a trust company administering the investment trust assignment. 

Local custodians: It is a trust company authorized to carry out the activity of custody of securities, and within this activity it carries out the power of attorney of the foreign portfolio investor. For portfolio investment, it is responsible for exercising custody of the securities and cash resources of the foreign portfolio investor for the fulfillment of operations (clearing and settlement) on said securities, as well as the administration of patrimonial and political rights and compliance with tax and foreign exchange obligations. 

Securities trading and registration systems¿: Infrastructure provider where local broker dealers execute operations instructed by international brokers or ordered directly by the foreign portfolio investor, which may be for the acquisition or disposal of fixed or variable income securities. 

Trust company: Entity that through a fiduciary assignment agreement (investment trust) represents the investments ordered by the foreign portfolio investor. Through this contract, it receives the resources, attends to the instructions for negotiating investments, exercises patrimonial and political rights and compliance with tax and foreign exchange obligations, generating periodic information reports.