Nasdaq and nuam, a consortium formed by the Santiago, Lima, and Colombia stock exchanges, have announced an extension of their strategic partnership focused on technology. This agreement aims to have all three exchanges adopt Nasdaq’s central securities depository (CSD) platform, enhancing post-trade processing capabilities across the region.
The extension builds upon the existing relationship between the two entities, as nuam works to consolidate its trading infrastructure on Nasdaq’s technology to attract international liquidity sources. Additionally, this partnership complements Nasdaq’s long-standing collaboration with Chile’s CSD, known as Depósito Central de Valores (DCV), a prominent player in technologically advanced CSD platforms in the area.
By employing a unified solution grounded in international standards, nuam’s infrastructure will see significant improvements. Enhanced interoperability between trading systems and CSDs will help lower costs and eliminate barriers to accessing individual markets. This upgrade is anticipated to boost liquidity and operational efficiencies across the three exchanges.
The Chief Executive Officer of nuam emphasized the importance of having robust technological standards to ensure investor security and build confidence while expanding market access. The partnership with Nasdaq further solidifies nuam’s dedication to creating an integrated and efficient capital market within Latin America. Adoption of the new technology is expected to improve connectivity and infrastructure, thus facilitating better access for global investors and promoting the competitiveness of the Latin American financial ecosystem.
A senior vice president from Nasdaq highlighted that enhancing the infrastructure of global capital markets is vital for fostering resilience and acting as a significant driver of growth. He remarked on Latin America’s rapid modernization of its financial markets and expressed confidence that incorporating world-class technology would attract foreign investors while allowing local markets to adapt and incorporate innovative solutions.
The rollout of Nasdaq’s CSD technology will standardize business processes and ensure better connectivity, simplifying the process for investors to settle trades across various markets. By removing investment barriers, there is potential for increasing international capital influx into nuam’s exchanges, further supporting the swift progression of Latin America’s economy.