Argentina stock exchange to adopt Nasdaq’s clearing platform
19 September 2024 Argentina, US
Image: AlexTrp/stock.adobe.com
Argentina stock exchange group Bolsas y Mercados Argentinos (BYMA) will base its entire post-trade ecosystem on Nasdaq technology, expanding the partnership between the two firms.
Under the terms of the agreement, BYMA will adopt Nasdaq’s real-time clearing platform at its central counterparty clearing house (CCP).
It looks to complement Nasdaq’s existing technology partnership with Caja de Valores, Argentina’s central securities depository (CSD), which is also owned by BYMA.
The platform allows BYMA to improve the speed, capacity, and connectivity of its post-trade
network, while optimising risk management across the system through more real time access to data, advanced risk analytics, and greater operational resiliency, the firms say.
In addition, it aims to enhance reconciliation and the digital experience for clearing members, drawing on industry standard APIs.
The clearing system is designed to add capacity through periods of heightened volume, while its modular architecture offers BYMA the flexibility to launch new products and services with a shorter time-to-market.
The move will support BYMA’s shift to a model where cash and security settlement takes place at the CSD after netting has taken place at the CCP.
According to the two firms, this will allow liquidity to be centralised and optimise collateral management for members, while ensuring a clear distinction of functional capabilities between the two entities.
It also simplifies the company’s existing structure whereby settlement, clearing, and risk are processed independently across three different systems.
Commenting on the expansion, Magnus Haglind, senior vice president, marketplace technology, at Nasdaq, says: “Nasdaq is playing a role [in] helping to simplify post-trade architecture, ensuring operators have the technology to respond to new challenges, capture market opportunities, and scale as they capitalise on a new wave of innovation.
“Consolidating BYMA’s post-trade operation on Nasdaq’s platform marks another major step forward in the growth and development of the Argentinian market.”
Ernesto Allaria, BYMA chairman, adds: “We are taking a crucial and pioneering step within the local market which seeks to integrate the whole trading lifecycle with a system in line with most developed global markets’ standards.
“Our aim is to give market participants access to platforms through which they can conduct their day-to-day activities.”
Under the terms of the agreement, BYMA will adopt Nasdaq’s real-time clearing platform at its central counterparty clearing house (CCP).
It looks to complement Nasdaq’s existing technology partnership with Caja de Valores, Argentina’s central securities depository (CSD), which is also owned by BYMA.
The platform allows BYMA to improve the speed, capacity, and connectivity of its post-trade
network, while optimising risk management across the system through more real time access to data, advanced risk analytics, and greater operational resiliency, the firms say.
In addition, it aims to enhance reconciliation and the digital experience for clearing members, drawing on industry standard APIs.
The clearing system is designed to add capacity through periods of heightened volume, while its modular architecture offers BYMA the flexibility to launch new products and services with a shorter time-to-market.
The move will support BYMA’s shift to a model where cash and security settlement takes place at the CSD after netting has taken place at the CCP.
According to the two firms, this will allow liquidity to be centralised and optimise collateral management for members, while ensuring a clear distinction of functional capabilities between the two entities.
It also simplifies the company’s existing structure whereby settlement, clearing, and risk are processed independently across three different systems.
Commenting on the expansion, Magnus Haglind, senior vice president, marketplace technology, at Nasdaq, says: “Nasdaq is playing a role [in] helping to simplify post-trade architecture, ensuring operators have the technology to respond to new challenges, capture market opportunities, and scale as they capitalise on a new wave of innovation.
“Consolidating BYMA’s post-trade operation on Nasdaq’s platform marks another major step forward in the growth and development of the Argentinian market.”
Ernesto Allaria, BYMA chairman, adds: “We are taking a crucial and pioneering step within the local market which seeks to integrate the whole trading lifecycle with a system in line with most developed global markets’ standards.
“Our aim is to give market participants access to platforms through which they can conduct their day-to-day activities.”
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