Caja de Valores adopts Nasdaq technology to modernize the country's post-trade infrastructure

Caja de Valores, a central securities depository in Argentina that is part of the BYMA Group, presents its new Custody System, developed with the leading CSD (Central Securities Depository) technology from Nasdaq, one of the largest automated and electronic stock exchanges in the United States.

The technology platform significantly enhances Caja de Valores' ability to efficiently and immediately meet operational and performance needs, as well as to prepare the business for the future and position it to capitalize on new growth opportunities.

The new system was implemented at the end of September 2023, and brings significant and concrete benefits to all market participants: Banks, ALYCs, Insurance Companies, among others. It boosts the resilience, capacity and speed of Caja de Valores, which can process more than 1,000 transfers per second, more than 300 times faster than the previous system.

During the month following the launch of the new system, the daily average of transfers recorded was 700 thousand, with peaks of 865 thousand. This represents an increase in the monthly average with respect to the month prior to the launch of the new system (August) of 49%. And it responds to the transactional level of BYMA's business, being a market that generates operations.

The new system made it possible to satisfactorily respond to the interests of participants during the last months of 2023, marked by an election context.

Caja de Valores is the second central depository in Latin America to adopt this modern Custody System, which aligns the Argentine Capital Market to the technologies used by the most developed markets in the world. This announcement is part of BYMA's innovation strategy focused on enhancing the technological standards of the Argentine market.

Gonzalo Pascual Merlo, CEO of BYMA, said: "We are proud of this historic step for the custody of the Argentine Capital Market, which is the result of great teamwork both within BYMA and in conjunction with the leading provider. As an organization, we are committed to the development of the Argentine economy and the growth of the country.

For this reason, we continually continue to invest in world-class technology to generate the infrastructure to make that happen and to transform investment into work and development". And he added: "As in many countries around the world, the Capital Markets have been subject to periods of substantial increases in transaction volumes, which has put pressure on the technological infrastructure itself. At BYMA, we are preparing for this scenario with a new Custody System that responds to the needs of the context". "Securities depositories play a vital role at the heart of the capital markets ecosystem and are increasingly demanding an agile infrastructure to respond to new regulations, as well as to adapt to changing market conditions and capitalize on emerging growth opportunities. Infrastructure development for central securities depositories is vital to keep pace with the changing investment landscape," said Roland Chai, Executive Vice President and Chief Market Technology Officer at Nasdaq. "Given that much of the post-trade industry runs on legacy technology, we welcome the opportunity to partner with Caja de Valores and support the continued development of Argentina's Capital Markets." he added.

Keys about the new Custody System

• The technology offers standardized protocols to seamlessly connect to in-house and third-party clearing and trading solutions and will benefit from regular upgrades to ensure it remains at the forefront of international standards and best practices.
• The New System significantly reduces the time to market for new asset classes, event types and services, and will incorporate customized connections for existing services. SME instruments continue to be offered on the legacy custody system, and Caja de Valores plans to migrate these instruments to the new platform during the first quarter of 2024.
• Nasdaq Marketplace Technology is one of the world's largest market infrastructure technology providers and offers multi-asset solutions to more than 130 markets, CCPs, CSDs and regulators in more than 50 countries. It offers reliable and scalable technology throughout the entire trading lifecycle, helping organizations drive efficiency, transparency and liquidity with unmatched resilience.

Keys about the implementation

• Caja de Valores carried out the implementation based on compliance with established processes in conjunction with Nasdaq. BYMA has been developing its technological infrastructure and accompanies depositors in their process of adapting to the technological requirements.
• The launch is the culmination of a strategic and dynamic multi-year plan, which began when Caja de Valores recognized the potential benefits of modernizing its legacy infrastructure to support the continued growth and institutionalization of the Argentine Capital Market.
• The implementation took place in September 2023. The timetable for implementing the new system, scheduled for January 2024, was brought forward in anticipation of a significant increase in trading volume in the local capital market during the last months of 2023.
• The go-live was coordinated with Nasdaq. The date was jointly defined after an exhaustive review of the processes to be implemented, with a focus on guaranteeing the most favorable conditions for the migration.