The Argentine Securities Exchange will implement Nasdaq’s platform for settlement and risk management activities –internationally known as clearing– to expand its strategic partnership. This new step forward partnering Nasdaq will let BYMA's end-to-end trading cycle to be conducted under cutting-edge world-class technology. The new development takes the Argentine Capital Market clearing to the next level.
NEW YORK AND BUENOS AIRES, SEPTEMBER 19, 2024– Today, Nasdaq and BYMA –Argentina’s leading securities exchange– announced a major expansion of their technology partnership that will enable BYMA to base its entire post-trading services ecosystem on Nasdaq technology.
BYMA will implement Nasdaq’s IT platform to run its settlement and risk management system –internationally known as clearing– under this new agreement. This technological milestone will allow BYMA’s end-to-end trading cycle to be conducted under cutting-edge world-class technology, thus making it possible to offer key market services with greater capabilities, scalability and security. Added to this, BYMA’s trading and securities custody activities are already conducted through leading technological platforms.
Benefits of this new technological implementation
- Enables BYMA to improve its post-trade services network speed, capacity and connectivity.
- Adds technological features to address real-time risk management control by incorporating new tools.
- Improves the digital user experience for all market participants. BYMA’s settlement and risk management system will rapidly increase its capacity in peaks of trading volumes. Its modular architecture gives BYMA the flexibility it needs to launch new products and services within much shorter lead times.
- Optimizes collateral management activities, in favor of all market participants.
- Strengthens BYMA’s current infrastructure as an essential service provider to the capital market proper functioning.
Magnus Haglind, Senior Vice President of Market Technology at Nasdaq said: “Market operators globally are navigating a series of market reforms, more intense regulation, and an increasingly complex operating environment. Nasdaq is playing a powerful role helping to simplify post trade architecture, ensuring operators have the technology to respond to new challenges, capture market opportunities, and scale as they capitalize 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.”
In this regard, Ernesto Allaria, BYMA Chairman, added: “We are taking a pioneering step in the local market which seeks to integrate the whole trading life cycle in a system in line with the most developed global market’s standards. Our aim is to give market participants’ access to leading platforms to run their businesses. We celebrate this crucial new step taken towards strengthening our strategic partnership with Nasdaq.”
Gonzalo Pascual Merlo, BYMA CEO, said: “Incorporating Nasdaq as our leading global strategic partner reassures our commitment to innovation leading to turn investment into growth and development. In this context of increasingly significant market growth, our priority is building the basic infrastructure that will lead to Argentina’s economic growth. We are aware of the Capital Market’s role in achieving this goal and for this purpose we provide scalable and efficient ways to meet Argentineans investment and financing needs”.
The project will be conducted collaboratively by the teams of the local Securities Exchange and Nasdaq.
BYMA has experienced a sharp growth in the last years. BYMA products’ trading volume also followed this increasingly growing trend and exceeded the amount of USD 536,324 million (in MEP dollars) representing a 91% increase compared to the first half of 2023. If we compare these figures with 2023 totals, 85% of the annual results have already been achieved.
At the same time, BYMA has expanded into new asset classes and financial services. To ensure its markets remain robust, scalable, and resilient in the face of an increasingly complex global marketplace, BYMA has continued to invest in its underlying technology architecture. Expanding its partnership with Nasdaq represents the next step in its investment program, by helping to ensure safe, dynamic and reliable integrated post-trade service operations.
In September 2023, Caja de Valores successfully launched the new securities custody system developed with Nasdaq technology, securing their ability to meet immediate operational and performance needs, future proof the business, and position BYMA to capitalize on future growth opportunities.
As a scaled platform partner, Nasdaq draws on deep industry experience, technology expertise, and cloud managed service experience to help 3,500+ banks, brokers, regulators, financial infrastructure operators, and buy-side firms solve their toughest operational challenges while advancing industrywide modernization. Its Marketplace Technology business serves as one of the world’s largest market infrastructure technology providers, providing multi-asset solutions to more than 130 marketplaces, CCPs, CSDs and regulators in over 50 countries. It offers reliable and scalable technology across the trade lifecycle, helping organizations to drive efficiency, transparency, and liquidity.