BYMA to base its entire post-trade ecosystem on Nasdaq technology

Argentinian exchange group to adopt Nasdaq’s real-time clearing platform, expanding the companies’ existing Central Securities Depository partnership

The clearing platform will enhance capacity and connectivity whilst reducing operational complexity

Nasdaq and BYMA, Argentina’s leading stock exchange group, announced a significant expansion of their technology partnership that will see BYMA base its entire post-trade ecosystem on Nasdaq technology.

Under the terms of the agreement BYMA will adopt Nasdaq’s real-time clearing platform at its central counterparty clearinghouse (CCP), complementing Nasdaq’s existing technology partnership with Caja de Valores, Argentina’s central securities depository, which is also owned by BYMA.

Together, the platform allows BYMA to improve the speed, capacity, and connectivity of its post-trade network, whilst optimizing risk management across the system through more real time access to data, advanced risk analytics, and greater operational resiliency. In addition, it aims to enhance reconciliation and the digital experience for clearing members, drawing on industry standard APIs.

The clearing system will be able to add capacity rapidly through periods of heightened volume, while its modular architecture offers BYMA the flexibility to launch new products and services with a much shorter time-to-market.

The move will support BYMA’s shift to a model where cash and security settlement takes place at the central securities depository after netting has taken place at the clearing house, in line with international best practice. This will allow liquidity to be centralized and optimize collateral management for members, whilst 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.

Magnus Haglind, Senior Vice President, Marketplace 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.”

Ernesto Allaria, BYMA Chairman said: “We are taking a crucial and pioneering step within the local market which seeks to integrate the whole trading life cycle with a system in line with most developed global markets’ standards. Our aim is to give market participants access to cutting-edge leading platforms through which they can conduct their day-to-day activities. We celebrate this crucial step taken towards strengthening our strategic partnership with Nasdaq.”

Gonzalo Pascual Merlo, BYMA CEO, added: “Partnering with a leading global strategic partner such as Nasdaq reconfirms our commitment to innovation to turn investment into growth and development. Within this current context of increasing market growth, our priority is to build the basic infrastructure needed to drive Argentina’s economic growth. We are fully aware of the role that the Argentine Capital Market needs to play to achieve this aim. For this purpose, we are providing for scalable and efficient platforms and systems to enable Argentinians meet their investment and financial goals.”

BYMA has experienced significant growth in recent years, today serving 1 million trades per day with roughly 1.5 million investment accounts active every month, while also expanding into new asset classes and services. To ensure its markets remain robust, scalable, and resilient in the face of its 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, helping to ensure safe, dynamic and reliable integrated post-trade operations.

In September 2023, the Central Securities Depository successfully launched its new platform, securing their ability to meet immediate operational and performance needs, future proof the business, and position the business 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.

Source: Nasdaq