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Santiago Stock Exchange (SSE)
Chilean Stock Market
2015
Agenda
1. Chile: a place to invest
2. Chilean Stock Market
3. MILA
4. Santiago Stock Exchange
5. Projects
CHILE: A PLACE TO INVEST
Population: 17.77 MM*
GDP: USD 277,199 MM*
GDP per capita (PPP): USD 21,911
GDP growth: 1.9%
Unemployment: 6.2%
Inflation: 4.6%
Sovereign Rating: AA-; A+
Trade Balance: USD 8,560 MM
Exports: USD 76,648 MM
Imports: USD 68,089 MM
*Data as of December 2013
Source: Central Bank, INE, World Bank
CHILE: A PLACE TO INVEST
CHILE: GDP BY SECTORS
Source: Central Bank
Corporate Services16%
Mining12%
Personal Services12%
Manufacturing12%
Commerce9%
Construction8%
Housing Services6%
Financial Services5%
Public Administration5%
Transport4%
Agriculture and forestry3%
Electricity, gas and water3%
Communications2%
Restorants and hotels2%
Fishing1%
Chilean GDP shows a steady growth since 2003, except on 2009 for macroeconomic
reasons. It maintains above regional and global averages.
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
GDP VARIATION
Chile SudAmerica + Mexico MILA OCDE
Source: World Bank, GDP (actual US$ prices)
CHILE: A PLACE TO INVEST
305%
197%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
South America + Mexico - GDP per capita variation
Chile SudAmerica + Mexico
305%
197%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
MILA – GDP per capita variation
Chile MILA
Source: Central Bank
305%
120%
0%
50%
100%
150%
200%
250%
300%
350%
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
OCDE - GDP per capita variation
Chile OCDE
During the last 20 years, our country
has shown a superior GPD per
capita than regional and worldwide
averages.
CHILE: A PLACE TO INVEST
-5
0
5
10
15
20
25
30
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
% I
nfl
ati
on
Year
INFLATION
Chile SudAmerica + Mexico MILA OCDE
Source: World Bank, DatosMacro.com
CHILE: A PLACE TO INVEST
Source: World Bank, INE.
Unemployment was stable between bands of 6 and 10%. It shows to be in line with
other developed countries. The current percentage is 6.15%.
CHILE: A PLACE TO INVEST
0
2
4
6
8
10
12
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
% U
nem
plo
ymen
t
Year
UNEMPLOYMENT
Chile Southamerica MILA OCDE
Agenda
1. Chile: a place to invest
2. Chilean Stock Market
3. MILA
4. Santiago Stock Exchange
5. Projects
MARKET PARTICIPANTS
1. ISSUERS
• Chilean Central Bank
• General Treasury of the Republic
• Banks and Financial Institutions
• Corporate Bodies
CHILEAN STOCK MARKET
MARKET PARTICIPANTS
1. ISSUERS
Domestic Equities: 230
Foreign Equities: 79
Foreign Equities MILA: 463
Foreign ETF: 102
Foreign Open Funds: 203
Fixed Income: 147
Money Market: 57
Local Investment Funds: 125
Local Mutual Funds: 9
Data as of December 31, 2014 Most traded stocks 2014
Source: Santiago Stock Exchange
CHILEAN STOCK MARKET
MARKET PARTICIPANTS
2. BROKERS:
Requirements:
• To own a Santiago Stock Exchange share
• Have a minimum estate and established guarantees
• Be accepted by the Board of Directors of Santiago
Stock Exchange
• Be regulated by the exchange and the Chilean
Securities and Insurance Supervisor (SVS)
Functions:
• Issuing new securities on the market
• Brokerage of securities between buyers and sellers
• Managing customers´ portfolios
• Advising investors and issuers
• Proprietary trading
CHILEAN STOCK MARKET
MARKET PARTICIPANTS
2. BROKERS MARKET SHARE
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
OTHERS18.8%
BANCHILE 15.1%
LARRA 12.2%
BTG 11.5%
SANTANDER 9.8%
IM TRUST 7.1%
BCI 6.2%
MERRILL 4.5%
MBI 4.4%
EUROAMER 3.8%
SECURITY 3.8%
SCOTIA 2.7%
EQUITY
MARKET PARTICIPANTS
2. BROKERS MARKET SHARE
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
BANESTADO 19.9%
BBVA 15.9%
BICE 12.0%SANTANDER
11.2%
OTHERS10.0%
BANCHILE 9.4%
BCI 6.0%
CORPCAP 3.8%
IM TRUST 3.6%
ITAU CHILE3.2%
PENTA 2.6%
LARRA 2.3%
FIXED INCOME
MARKET PARTICIPANTS
2. BROKERS MARKET SHARE
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
BANESTADO 29.2%
BBVA 17.7%
BANCHILE 12.2%
BCI 10.1%
BICE 6.7%
SANTANDER 5.3%
OTHERS4.7%
ITAU CHILE3.9%
CORPCAP 3.1%
SCOTIA 2.8%
LARRA 2.5% EUROAMER
1.7%
MONEYMARKET
MARKET PARTICIPANTS
3. INVESTORS
Institutional Investors:
• Pension Funds (AFP)
• Mutual Funds
• Investment Funds
• Insurance Companies
• Banks
Non-Institutional Investors: natural and
legal persons, local and foreigners.
CHILEAN STOCK MARKET
MARKET PARTICIPANTS
3. INVESTORS: INVESTMENT STOCK
CHILEAN STOCK MARKET
Source: Chilean Pension Funds, Mutual Funds, Insurance Companies, Investment Funds.
Pension Funds: Data as of October 2014.
Mutual Funds and Insurance Companies: Data as of Decemeber 2013.
Investment Funds: Data as of September 2013.
CHILEAN STOCK MARKET
MARKET PARTICIPANTS
4. REGULATORS
Superintendence's
• Chilean Securities and Insurance Supervisor (SVS)
www.svs.cl
• Superintendence of Pensions
www.safp.cl
• Superintendence of Banks and Financial Institutions
www.sbif.cl
MARKET PARTICIPANTS
5. MARKET INFRASTRUCTURE COMPANIES
Santiago Stock Exchange
• Santiago Stock Exchange (SSE) www.bolsadesantiago.com
Depositaries
• Central Securities Depository (DCV) www.dcv.cl
Clearing and Settlement
• CCLV, Central Counterparty S.A. www.cclv.cl
CHILEAN STOCK MARKET
MARKETS: CHILE IN THE REGION
CHILEAN STOCK MARKET
Source: WFEData as of December 2014
1 billion = 1.000 millions
CountryMarket Cap
(US$)
Listed
Companies
Equity Traded
Amounts 2014
(US$)
Fixed Income
Traded
Amounts 2014
(US$)
Equity New
Issues 2014
(US$)
Market
Cap./GPD
Argentina6° 5° 5° 3° 6° 6°
($60 billion) (101 listed) ($5 billion) ($60 billion) ($0.02 billion) 9.8%
Brazil1° 1° 1° 6° 1° 5°
($844 billion) (363 listed) ($728 billion) ($0.12 billion) ($15 billion) 37.6%
Chile3° 2° 3° 2° 2° 1°
($233 billion) (307 listed) ($29 billion) ($217 billion) ($1.84 billion) 84.1%
Colombia4° 6° 4° 1° 3° 3°
($147 billion) (74 listed) ($24 billion) ($675 billion) ($1.82 billion) 38.8%
Mexico2° 4° 2° 5° 4° 4°
($480 billion) (147 listed) ($157 billion) ($0.26 billion) ($0.9 billion) 38.1%
Peru5° 3° 6° 4° 5° 2°
($79 billion) (263 listed) ($4 billion) ($0.84 billion) ($0.8 billion) 39.0%
CHILEAN MARKET:
TOTAL TRADED VOLUME AND NUMBER OF TRADES 2014
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
*Considers on and off floor trades.
MARKET DAILY TRADED AMOUNTS 2014
Source: Santiago Stock Exchange
Traded amounts at Santiago Stock Exchange
Stocks7%
Investment Fund Quotas
0% Currency0%
Money Market62%
Fixed Income31%
Stocks: US$ 110.19
Investment Fund Quotas: US$ 7.32
Currency: US$ 0.02
Money Market: US$ 980.15
Fix Income: US$ 494.15
Note: Figures expressed in MM US$
CHILEAN STOCK MARKET
EQUITY TAXES
Capital Gains:
• High Liquidity Stocks or Stocks with Market Maker:
0% for domestic and foreign investors
• Low Liquidity Stocks:
Domestic Investors: Income Tax (0-35%)** and/or first category tax (25% or 27%)*
Foreign Investors: 35%
Dividends
• Domestic Investors: Income Tax (0-35%)**
• Foreign Investors: 35%
CHILEAN STOCK MARKET
Equities N° of stocksTraded Amounts as of
December 2014
High Liquidity 64 98.02%
Low Liquidity 204 1.98%
Source: Santiago Stock Exchange
*Tax depends on the system to which the company is admitted (rates correspond to the maximum value, in force as of 2018).
**Value corresponds to the current value as of 2017.
CHILEAN STOCK MARKET
DEBT INVESTMENT TAXES
Modifications to Article 104 of the Chilean Income Tax Act introduced by the Single Funds Act (Ley Única de
Fondos)
• Expands eligible forms of acquisition and disposition of instruments
• Eliminates operation load for issuers
• Eliminates tax punishment for the issuer when issuing above or below par value
• Increases eligible long-term instruments of Treasury and Central Bank
Capital Gains
• Long-term debt instruments issued in Chile, under the Article 104 of the Chilean Income Tax Act:
0% taxes for domestic and foreign taxes
• Long-term debt instruments issued in Chile, not admitted in the Article 104 of the Chilean Income Tax Act:
Domestic Investors: First category tax (25 or 27%)* and/or income tax (0-35%)**
Foreign Investors: Additional tax (35%)
Interests (coupons):
• Long-term debt instruments both admitted and not admitted in the Article 104 of the Chilean Income Tax Act:
Domestic Investors: First category tax (25% or 27%)* and/or income tax (0-35%)**
Foreign Investors: Additional tax (4%) for instruments admitted in Article 104. Tax of 35% for other instruments.
*Tax depends on the system to which the company is admitted (rates correspond to the maximum value, in force as of 2018).
**Corresponds to the current value as of 2017.
CHILEAN STOCK MARKET
EQUITY MARKET GROWTH 2005 – 2014
Source: Santiago Stock Exchange
EQUITY MARKET GROWTH 2002 - 2014
CHILEAN STOCK MARKET
2002 2014 Variation
Traded Amounts (MM US$) 5.76 76.30 1224.11%
Market Cap. (MM US$) 82.16 383.61 366.93%
Market Cap. / GDP 70.00% 84.10% 20.14%
Traded Amounts / Market Cap. 7.04% 19.89% 182.53%
Price / Earnings 20.6 19.5 -5.34%
Book Value 1.09 1.49 36.70%
Market Concentration: 10 Top most traded
stocks62.00% 48.70% -21.45%
Market Concentration: 10 Top in Market Cap. 43.00% 45.10% 4.88%
Source: Santiago Stock Exchange
INSTITUTIONAL MARKET SHARE: EQUITY MARKET
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
*Considers buy + sell amounts
INVESTMENT FUND QUOTAS (IFQ) MARKET GROWTH 2005 – 2014
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
*Traded volume expressed in millions of dollars using the “Observed Dollar” exchange recorded at the last day of 2014
FIXED INCOME INSTRUMENTS (IRF) MARKET GROWTH 2004 – 2014
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
*Traded volume expressed in millions of dollars using the “Observed Dollar” exchange recorded at the last day of 2014
INSTITUTIONAL MARKET SHARE: FIXED INCOME
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
*Considers buy + sell amounts
CAPITAL RAISED IN FIXED INCOME IPOs 2005 - 2014
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
TRADING VALUE BY TYPE OF BONDS (FIXED INCOME) 2014
CHILEAN STOCK MARKET
LH: Letra Hipotecaria/Mortgage notes
BE: Bonos Bancarios y Empresas/Bank and Corporate Bonds
BT: Bonos del Banco Central y Tesorería en Pesos/ Central Bank and Treasury Bonds
Source: Santiago Stock Exchange
MONEY MARKET INSTRUMENTS (IIF) MARKET GROWTH 2005 – 2014
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
*Traded volume expressed in millions of dollars using the “Observed Dollar” exchange recorded at the last day of 2014
INSTITUTIONAL MARKET SHARE: MONEY MARKET
Source: Santiago Stock Exchange
*Considers buy + sell amounts
CHILEAN STOCK MARKET
FOREIGN SECURITIES GROWTH 2006 – 2014
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
*Traded volume expressed in millions of dollars using the “Observed Dollar” exchange recorded at the last day of 2014
INDICES
IPSA: Blue chip index (top 40 most traded stocks)
CHILEAN STOCK MARKET
IPSA: Selective Stock Price Index: The IPSA is an index of the 40 highest trading value stocks on SSE, calculated
quarterly, and whose market capitalization is over US $200,000,000 and a free-float percentage of not less than 5%
at 2014 market close.
Source: Santiago Stock Exchange
*Traded volume expressed in millions of dollars using the “Observed Dollar” exchange recorded at the last day of 2014
SANTIAGO STOCK EXCHANGE STOCK MARKET INDICES 2014
CHILEAN STOCK MARKET
Source: Santiago Stock Exchange
Agenda
1. Chile: a place to invest
2. Chilean Stock Market
3. MILA
4. Santiago Stock Exchange
5. Projects
MILA
INTEGRATED LATIN AMERICAN MARKET – MILA
The Pacific Alliance´s Stock Market
Chile, Colombia, Mexico and Peru
Most promising economies in Latin America
Rank of investment
Integrated market
In MILA you can find:
• Investment opportunities on over 700 companies from four countries.
• More than 60 interconnected intermediaries, trading securities under approved standards.
• Custody of securities are kept within origin markets with full interconnection between Depositories.
• For local issuers, investors can access all four countries with just one registration.
With the support of:
MILA
MILA AND THE PACIFIC ALLIANCE
With Mexico´s incorporation to MILA last December 2014:
Market capitalization increased to more than USD 1,075 billion
The number of issuers increased over 40%
MILA is integrated by all four countries from the Pacific Alliance, becoming the initiative´s
financial arm. These four economies generate 35% Latin America´s GDP and concentrate
50% of LATAM´s exports, equivalent to USD 1,100 million.
If all four countries were one nation, it would be the 8th largest economy in the world.
MILA IN NUMBERS
Source: Mila News, WFE, Santiago Stock Exchange: Information as of december 2014,.
Mexico51%
Chile25%
Colombia16%
Peru8%
MarketCap.
Mexico75%
Chile14%
Colombia10%
Peru1%
TradedVolume
MARKET CAP AND TRADED VOLUMEN 2014
MILA
MILA INDICES COMPARATIVE 2014
Source: Santiago Stock Exchange, MILA News
MILA
Source: Financial Superintendence of Colombia, Superintendence of Banking, Insurance and
Pension Funds of Peru, Ministry of Finance and Public Credit of Mexico, Chilean Pension Fund
Superintendence
Data: Colombia/December 2014; Peru/October 2014; Mexico/August 2014; Chile/October 2014.
INVESTMENT STOCK PENSION FUNDS OF MILA
Agenda
1. Chile: a place to invest
2. Chilean Stock Market
3. MILA
4. Santiago Stock Exchange
5. Projects
ABOUT SANTIAGO STOCK EXCHANGE
• Created on November 27,1893
• 27 Brokerage Houses
• Market Cap.: 233,042 MMUS$
• Available Products:
Equities
ETF
Fixed Income Instruments
Money Market Instruments
Investment Funds / Mutual Funds
Futures
Foreign Instruments
• Subsidiary: CCLV, Central Counterparty S.A.
SANTIAGO STOCK EXCHANGE
BALANCE SHEET
SANTIAGO STOCK EXCHANGE
Source: Santiago Stock Exchange
Trading services32%
Back office Services
25%
Trading Fees14%
Clearing and settlement
12%
Data Dissemination
7%
Listing6%
Other4%
SSE's INCOME
SSE´s income MMUS$ 34.0
SSE´s profits MM US$ 11.5
MMUS$
Total Current Liabilities 7,00
Total Long-term Liabilities 22,37
Total Equity 52,44
Total Assets and Equity 81,81
MMUS$
Total Current Assets 42,49
Total Long-term Assets 39,32
Total Assets 81,81
SSE’s MARKET SHARE 2014
SANTIAGO STOCK EXCHANGE
SSE: Santiago Stock Exchange
ESE: Electronic Stock Exchange
VSE: Valparaíso Stock Exchange
Source: Santiago Stock Exchange
SSE98%
ESE2%
VSE0%
MONEYMARKET
SSE100%
ESE0%
VSE0%
FIXEDINCOME
SSE92% ESE
8%
VSE0%
EQUITY
BUSINESS LINES
EQUITY / FIXED INCOME / MONEY MARKET / DERIVATIVES
SANTIAGO STOCK EXCHANGE
TRADING
ALWAYS EVOLVING
1917
1995
2015
SANTIAGO STOCK EXCHANGE
CCLV: CENTRAL COUNTERPARTY
• CCLV is a subsidiary company of Santiago Stock Exchange (97.27% owned by SSE).
• Operations begun on September 1, 2010.
• Manages two clearing and settlement systems:
Central Counterparty: for Equity Market and Derivatives.
Securities Settlement House: for long and short-term instruments, Repos.
• CCLV clears and settles a daily trading
average of 365 MM USD.
• 100% of operations were cleared and
completed on time (2014).
• Financial clearing is done through the Chilean
Central Bank and position clearing through
Depository (DCV).
• 40 Clearing Members.
SANTIAGO STOCK EXCHANGE
Agenda
1. Chile: a place to invest
2. Chilean Stock Market
3. MILA
4. Santiago Stock Exchange
5. Projects
PROJECTS 2015:
CHILEAN CAPITAL MARKET
• Tax Reform
This project was approved on September 2014, and it includes four main objectives: increasing the tax
burden on three GDP points, higher tax equity to improve income distribution, new incentives for
investment and savings and less tax evasion.
Taxes
According to the Tax Reform, the corporate tax will increase progressively from 20% to 25% in 2017 if the
company is in an “integrated tax system” or up to 27% in 2018 if the company is in a “partially integrated
tax system”. The evolution of this tax is as follows: 21% (2014), 22.5% (2015), 24% (2016) 25% integrated
and 25.5% semi integrated (2017), 25% integrated and 27% semi-integrated (2018). This tax also applies
to income rates, and its maximum rate will be reduced from 40% to a 35% in 2017.
Tax Income
It is projected that it will evolve from 0.28% of GDP in 2014 to 3.02% in 2018.
2015´s measures
1. Incentive for savings.
2. The application of part of the anti-circumvention and anti-avoidance measures begins.
3. 14 ter Simplified accounting for SMEs.
4. Tax on automobile emissions.
PROJECTS 2015:
CHILEAN CAPITAL MARKET
• Labor Reform
According to the data from the Labor Department, the unionization rate in the country reached 14.2% in
2013. In this context, in the Government´s program, the authority pledged to increase the bargaining power
of workers inside the company, empowering the unions and the collective negotiation. Thus, the Labor
Code is summarized in 10 points. Incumbent union, union´s benefits, the right to strike, minimum benefits,
union equity and equal opportunities are some of them.
• Constitutional Reform
During 2015 the government will work to implement the Constitutional Reform, which will promote four
working areas in order to move forward in this matter: constitutional reforms, more capacities and
management skills, more resources for regions and more democracy and representation.
In addition to its overall objective of developing the Chilean capital market, during
2015, Santiago Stock Exchange will have its focus on the following topics:
1. Market Operational Rules.
2. Corporate Governance and Brokerage Houses Control Systems .
3. Issuers information and their relation with investors.
4. Fix income market development.
5. Santiago Stock Exchange demutualization evaluation.
6. Capital Market development.
PROJECTS 2015:
SANTIAGO STOCK EXCHANGE
1.- Market Operational Rules:
On issues concerning regulatory improvements on the stock market, the work
done by the Board of Directors raised several key objectives that promote
liquidity, improve the price formation process and increase market competition
between market participants.
The report, which contains amendments to regulation and market operations, was
sent to the regulator in August 2014 and is awaiting approval by the Chilean
Securities and Insurance Supervisor.
PROJECTS 2015:
SANTIAGO STOCK EXCHANGE
2.- Corporate Governance and Brokerage Houses Control Systems:
The Best Practices Committee issued a report which contains provisions on the
prevention and management of potential conflicts of interest between brokers. This
report aims to consolidate and progress in self regulation issues, providing higher
levels of trust and transparency to the market. The report was analyzed by the
Board of Directors, in order to generate a formal and mandatory document for
brokers that will also consider several other topics that tend to improve the stock
market. The final report was sent to the Chilean regulator for his approval, in
January 2015.
PROJECTS 2015:
SANTIAGO STOCK EXCHANGE
3.- Issuers information and their relation with investors
Santiago Stock Exchange, main participant in the Chilean stock market, is working on a series of recommendations for
issuers, to strengthen market transparency. These new initiatives complement the existing high standards, developed by
Chilean Securities and Insurance Supervisor (SVS).
1. Financial information and market operations
Appropriate and active delivery of information is key for issuers and investors. All recommendations being elaborated by
Santiago Stock Exchange aims to clarify the information that may have an impact on the securities´ price listed on the
exchange.
2. About the relation between companies with investors
To promote the best practices in corporate governance and sustainability is of great importance to Santiago Stock Exchange.
Transparency in financial reports must complement business objectives, strategies, services, community relations,
environmental impact and corporate governance, amongst others.
3. Sustainability Index
Following a tender process, the Santiago´s Stock Exchange Board of Directors awarded S&P Dow Jones Indices the
construction, implementation and promotion of a new Sustainability Index, which will be made from the companies listed on
the exchange. This Sustainability Index will financially stimulate the incorporation of sustainable processes in the companies
practices of those who participate in the Chilean capital market, thus contributing to the creation of value, transparency and
the generation of important information for decision making.
PROJECTS 2015:
SANTIAGO STOCK EXCHANGE
4.- Fix income market development
In its ongoing challenge to develop the market, Santiago Stock Exchange is working on the migration of
the trading systems for Money Market and Fixed Income Instruments to JAVA FX Platform (Desktop HT).
Main functions:
• Trading platforms with High Frequency Trading
• Dissemination of information through Market Data (FIX)
• Trading networks
User´s benefits:
• Processing capacity and speed
• New trading functions for a fast and simple operation
• Direct connection with Back Office in order to register each trade automatically
• Larger dissemination of information through Market Data (vendors and other information
distributors can be included)
• Incorporation of DMA Services to the Fixed Income Chilean market
PROJECTS 2015:
SANTIAGO STOCK EXCHANGE
5. Santiago Stock Exchange demutualization evaluation
In January 2015, Santiago Stock Exchange Board members agreed to established a Committee of
Directors for analysis, supervision and monitoring of strategic character proposals.
In a first stage, its main objective will be to analyze and evaluate the advisability of moving towards a
process of demutualization of the Exchange activity from vertical and/or horizontal integration, regarding
national depository institutions or national or foreign operators.
The analysis will focus on international experiences to outline a work schedule that includes the best
practices and experiences already known that benefited those markets and institutions as a result of their
demutualization and integration process. The Committee will also discuss the relevance and benefits of
those processes of integration between the respective exchanges and depositories present in these
markets.
The Committee defined a preliminary work program that includes making the Board Members a proposal
regarding this issue no later than six months after their agreement.
PROJECTS 2015:
SANTIAGO STOCK EXCHANGE
PROJECTS 2015:
SANTIAGO STOCK EXCHANGE
6. Capital Market Development
A) Derivatives
Santiago Stock Exchange will launch the first Derivatives Market in Chile. In this market, local and foreign investors will be
able to trade standardized Future Contracts based on Equity Indices, Currency and Fixed Income assets.
These contracts will be settled by CCLV, Central Counterparty S.A., subsidiary of Santiago Stock Exchange. The launch is
scheduled for the second quarter of 2015: starting with Stock Index (IPSA Future) and Currency (Dollar/Peso) Futures. The
next step will be the launching of Fixed Income Futures (long and short rates).
B) Santiago Stock Exchange, Venture
The Venture Market offers a new segment within Santiago Stock Exchange, intended to open up and develop the capital
market for companies that are in an early stage process of growth, providing them with the opportunity to finance their
projects.
After signing and agreement in 2012, the joint work of Santiago Stock Exchange in collaboration with Toronto Stock
Exchange (TSX), aims to exploit the favorable experience of TSX, in particular its TSX Venture Exchange market,
specialized in business which are exploring natural resources, in order to replicate its business model and homologate it to
the Chilean reality.
Initially the focus will be on raising capital for small and medium mining enterprises (SMEs), which will strengthen and create
a solid bond between mining and the Chilean capital market. Subsequently, the initiative will seek to extend to other
industrial sectors.
6. Capital Market Development
C) Integrated Latin American Market (MILA)
MILA´s 2015 challenges:
• Positioning MILA as a country issue.
• Build a complete market infrastructure, improving securities settlement.
• Standardize regulatory issues.
• Improve and expand the supply of securities and markets.
• Joint promotion and dissemination of MILA Markets.
• Clearing and Settlement: easy, safe, cost efficient operations with duplication of processes in each
country.
PROJECTS 2015:
SANTIAGO STOCK EXCHANGE
6. Capital Market Development
D) SEBRA Capital improvement
Santiago Stock Exchange is working on renewing SEBRA Capital, a administrator system for brokers and
mutual funds and private managers which automates the main business of their clients. SEBRA Capital is
used by 74% of Santiago´s Stock Exchange brokers and it processes 79% of the exchanges traded
amounts.
The main improvements are:
• Upgrading the technology platform
• Improve and expand existing functionalities
• Increase software development productivity
• Expand the range of products and services to brokers at a lower price
• New products and services for clients who are not brokers
• Alliances with other Latin American exchanges (MILA)
PROJECTS 2015:
SANTIAGO STOCK EXCHANGE
6. Capital Market Development
E) A digital Santiago Stock Exchange
Santiago Stock Exchange is currently working on three major projects that will improve the institutional
digital platforms. Current and potential investors will have market information in a faster and simple way, in
all media.
1. SSE´s websites renewal: After a thorough investigation, Santiago Stock Exchange is designing a
new website, both Spanish and English version, that fits the needs of our users.
2. SSE´s SEBRA App: Santiago´s Stock Exchange customers, both general public and brokers, will be
able to access online market information through this new application. It will contain two versions:
through the Basic platform users may access all markets, create portfolios and monitor the behavior of
their favorite instruments; through its Premium platform, SSE´s brokers who own a SEBRA Terminal
will be able to access their trading work station information through this App.
3. Stock Price Twitter: This is an exclusive benefit for our followers on Twitter @bolsadesantiago.
Through a single tweet users will be able to receive IPSA´s stocks price in real time.
PROJECTS 2015:
SANTIAGO STOCK EXCHANGE
Santiago Stock Exchange
International Relations
Email: rrii@bolsadesantiago.com
Disclaimer
The content of this presentation is for general information purposes only and does not constitute advice. Santiago Stock Exchange
(SSE) tries to provide content that is true and accurate as of the date of writing; however, we give no assurance or warranty
regarding the accuracy, timeliness or applicability of any of the contents. This information is not intended to be a source for advice.
Investors should always seek the advice of an appropriate qualified professional.
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