Caja de Valores, Argentina’s Central Securities Depository (CSD), has launched a new technology platform using Nasdaq’s CSD technology.
The launch is the culmination of a multi-year, major change programme to support the continued growth and institutionalisation of Argentina’s capital markets. The core platform went live in September 2023, with more asset classes and additional functionality incorporated ahead of its formal launch in January 2024.
Magnus Haglind, SVP and head of marketplace technology at Nasdaq, said: “CSDs play a vital role at the heart of the capital markets ecosystem and are increasingly demanding agile infrastructure to respond to incoming regulations, adapt to changing market conditions, and capitalise on emerging growth opportunities. The development of global CSD infrastructure is vital to keep pace with the rapidly changing investment landscape. With much of the post-trade industry running on legacy technology, we welcome the opportunity to partner with Caja de Valores and support the ongoing development of Argentina’s capital market.”
The new platform is capable of processing more than 1,000 settlements per second, more than 300 times faster than the previous system. Its scalable architecture will ensure the platform is able to continue serving the Argentine market as it continues to grow.
In line with many countries around the world, Argentina’s capital market has been subject to periods of substantial increases in volumes which has placed additional strain on the sector’s technology infrastructure. Growth in the market had resulted in Caja de Valores’ technology platform effectively operating at full capacity.
The company has experienced daily average transactions of 700,000, with peaks of 865,000, representing an increase of 49% of the monthly average compared to the period prior to the launch of the new system, due to higher business volumes generated by the Buenos Aires Stock Exchange (BYMA), the owner of Caja de Valores.
Gonzalo Merlo, CEO of BYMA, said: “We are proud to take this historic step for the custody of the Argentine capital market, which is the result of great teamwork within BYMA and Nasdaq. As an organisation, we are committed to the development of the Argentine economy and the growth of the country. For this reason, we constantly invest in world-class technology to offer the infrastructure required to make that happen and help transform investment into prosperity and growth.”
“Like many countries around the world, Argentina’s capital market has been subject to periods of substantial increases in transaction volumes, which has put pressure on its own technological infrastructure. At BYMA we have prepared for this scenario with a new custody system which responds to the needs of our market,” Merlo added.
The technology offers standardised protocols to connect to both third party and in-house trading and clearing solutions and will benefit from regular upgrades to ensure it remains at the forefront of international standards and best practice. It will significantly reduce the time-to-market for new asset classes, event types and services, and incorporates bespoke connections for existing services. Non-standard instruments – an Argentinian specific asset class – continue to be served on the old system, with Caja de Valores planning to migrate these instruments onto the new platform during the first quarter of 2024.
© Markets Media Europe 2023
