securities review 2013 05-12-2014
TRANSCRIPT
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INNOVATION,
HISTORY AND
LEADERSHIP
/ ANNUAL REPORT /SANTIAGO STOCKExChANGE2013
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/ TABLE OF CONTENTS /
page 7 VISION, MISSIONAND VALUES
page 8LETTER FROMTHE CHAIRMAN
page 11CORPORATEGOVERNANCE
> Our Board of Directors
> Chief Executive Offi cer
> Our Committees
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Page
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page 69MARKETSNAPSHOT
page 19OUR STOCK EXCHANGE
> Our Stock Exchange:
Achievements 2013
> Our Challenges
> Brokerage Houses
> 120 years investing in the future
page 57OUR PRODUCTS AND SERVICES
> Comprehensive Service
for Our Customers
> From Routing to Back Offi ce
> Products and Services
page 35OUR ECONOMY AND STOCK MARKET IN 2013
> The Economy In Figures
> 2013 Stock Market Summary
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LEADERSHIP
INNOVATION
HISTORY
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OUR VISION /To be leaders in financial services, offering issuers, intermediaries and investors a market infrastruc-
ture with a high level of efficiency, technology and quality, and giving access to a wide array of in-
vestment products.
We intend to achieve this through the culture and attitude of our company and its people, both of
which are committed to the customer, innovation, competition, efficiency, service quality, technolo-
gy and management capacity.
OUR MISSION / To positively contribute to the development of capital markets and the wealth of our country, help-
ing issuers access diverse funding sources, generating value for investors, and enabling intermediar-
ies and clients to trade financial instruments in a trusted and transparent environment.
OUR VALUES / Excellence, quality and customer service are the core of our work and our key hallmark. We always
perform our tasks in the best possible way, with total dedication and spirit of service.
Honesty in complying with the law, regulations and instructions, as well as confidentiality and high
ethical standards, are essential in our daily work.
Talent and innovation are the foundation of our ability to develop original ideas and solutions, allow-
ing us to reach our goals, rise to the challenges and exceed customer expectations.
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At the end of the year in which we celebrate 120 years of history, I am especially proud to present our
Annual Report for 2013, which reflects the development of Santiago Stock Exchange as the countrys
main stock market and one of the most important in Latin America, contributing to the growth of the
Chilean capital markets and the strengthening of our economy.
With a forward-looking vision, Santiago Stock Exchange has sought to invigorate the Chilean capital
markets, continuously innovating and incorporating new products and services to supply a broad
offering of instruments to local and foreign investors.
Today, Santiago Stock Exchange offers a comprehensive service to its customers and gives
companies the opportunity to diversify their financing sources in a trusted, transparent and
sound environment.
To this end, in recent years we have made progress on implementing internal changes, important
initiatives and significant projects aimed at strengthening the stock market in Chile and its regional
positioning. Special importance has been placed on integration in order to move forward with the
consolidation of an open, attractive market for global investors that incorporates strategic alliances
with different exchanges throughout the region.
As part of these achievements, this year we celebrate the second anniversary of the start-up of the
Integrated Latin American Market (MILA). In addition to being an important channel for performing
transactions from one country to another, MILA has positioned itself as platform for integration,
strengthening financial business in Chile, Peru and Colombia.
MILA currently brings together almost 600 issuers, making it the second largest market in terms of
market capitalization in Latin America and the third largest in variable income trades and transac-
tions. As a result of MILA, mergers and acquisitions involving important financial holding compa-
nies have come about, initiating a process of international expansion and regional integration that
shows the catalyzing role that integration plays in the development of companies and countries and
whose future outlooks are large in scope.
Also within the framework of international alliances, we have continued to take important steps
with the Toronto Stock Exchange to leverage its experience, particularly of the TSX Venture Ex-
change division, to enable Chile to create a venture capital market, specializing in mining exploration
projects, the most important production sector in our country and that could benefit from increased
financing and new investments. We expect to make considerable progress on this initiative in 2014.
Our interest in generating spaces for integration peaked at the event that brought together repre-
sentatives from the Ibero-American stock market industry at the International Conference FIAB 2013,
which was organized by Santiago Stock Exchange. In September of this year, a total of 17 countries
and 23 stock exchanges from South America, Central America and Europe met in Santiago, along
with renowned international speakers and participants from the Chilean capital markets.
Our concern for the continual development of the Chilean capital market and the strengthening of
our economy also inspired us to incorporate new financial instruments, such as exchange traded
funds (ETFs) and the Derivatives Market, the latter of which we expect to begin to operate in 2014
after regulations are approved by regulatory authorities.
Its start-up will be a major step for the local market, allowing for advances in the diversification pro-
cess, risk management, and in the liquidity and depth of the domestic capital market. It will repre-
sent a strong boost for the development of the local financial market, bringing the Chilean stock
market to not only local investors but also a large number of foreign investors.
/ LETTER / FROM THE CHAIRMAN
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The launching of an ETF for the IPSA, led by Ita Administradora General de Fondos and Santiago
Stock Exchange, presents important outlooks, as they are the fastest growing financial instruments
on international markets and are part of the most traded securities on most global markets. A sam-
ple of this was the success attained by the IPSA ETF when in its first month of trading the instrument
exceeded US$ 25 million.
Our interest is also in building a capital market that projects itself sustainably. To achieve this, we
have decided to move forward with the creation of a Sustainability Index, for which it organized a
bidding process that brought together local and international experts to design a model that incor-
porates global experience adapted to the reality of our market. In this way, we hope to add options
for developing and promoting responsible investment.
In terms of connectivity, technology and infrastructure, today Santiago Stock Exchange has a world-
class technological platform called Telepregn HT, which is a pioneer in the world and whose archi-
tecture has been adopted by important international stock markets. In addition, in terms of integra-
tion with other platforms, we have incorporated the FIX protocol (version 4.4), which has enabled
our trading system to directly connect to the main international suppliers of order routing systems,
giving our customers access to Telepregn HT through Direct Market Access (DMA).
In this way, we have a highly stable and reliable platform to properly support our daily transactions,
with traded volumes of around US$ 2.0 billion each day. Through each of these initiatives, Santiago
Stock Exchange and its issuers have generated a virtuous circle of growth.
We are aware that the market delivers multiple and constant challenges. The Board of Directors and
I have worked to address these challenges with our sights set high, incorporating all viewpoints and
laboring to build a sound market based on trust and transparency. Our efforts are guided by princi-
ples of the utmost integrity and honesty in complying with laws, regulations and instructions as well
as high ethical standards.
Having fulfilled this important commitment, upon resigning as Chairman after 25 years of service,
I can say without a doubt that the experience has been enriching. I am proud to have been able to
contribute to the development of Santiago Stock Exchange. I would also like to express my sincerest
gratitude for the support and confidence placed in me throughout the years.
Santiago Stock Exchange will continue to work hard to meet its goals, to create value for sharehold-
ers, brokers, issuers and investors, and to compete successfully in global markets, in order to exer-
cise a vital role in terms of economic development, innovation, regional presence, employment and
corporate social responsibility, that ultimately translates into greater growth for our country and
prosperity for all Chileans.
PABLO YRARRZAVAL VALDSCHAIRMAN, SANTIAGO STOCK EXCHANGE
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1 120 YEARS INVESTING IN THE FUTURECORPORATE GOVERNANCE
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1. PABLO YRARRZAVAL VALDS
2. LEONIDAS VIAL ECHEVERRA
3. JUAN EDUARDO CORREA GARCA
4. JAIME LARRAN VIAL
5. SCAR VON CHRISMAR CARVAJAL
6. JUAN ANDRS CAMUS CAMUS
7. RODRIGO MANUBENS MOLTEDO
8. HERNN SOMERVILLE SENN
9. NICHOLAS DAVIS LECAROS
10. JUAN ANDRS FONTAINE TALAVERA
11. EDUARDO MUOZ VIVALDI
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OUR/ BOARD OF DIRECTORS /
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EDUARDO MUOZ VIVALDI
Director
Degree in industrial engineering from Univer-
sidad de Chile. Founding partner and Chairman
of Negocios y Valores S.A., Corredores de Bol-
sa. Director of Santiago Stock Exchange since
April 29, 2010.
JUAN ANDRS FONTAINE TALAVERA
Director
Degree in business administration from Universi-
dad Catlica and Master of Economics from the
University of Chicago. Former Minister of Econ-
omy, Head Partner of Fontaine Consultores S.A.
Member of the Executive Council at Instituto Lib-
ertad y Desarrollo, Director of Embotelladora An-
dina. Director of Santiago Stock Exchange since
April 24, 2012.
SCAR VON CHRISMAR CARVAJAL
Director
Degree in industrial engineering from Univer-
sidad de Santiago. Vice Chairman of Banco
Santander. Member of the boards of Directors
of Banco Santander in Argentina and Peru, Sina-
cofi and Chairman of Santander Consumer Chile.
Director of Santiago Stock Exchange since April
24, 2012.
JUAN EDUARDO CORREA GARCA
Director
Degree in industrial engineering from Universidad
Catlica de Chile. Vice Chairman of Banco Bice.
Chairman of Bice Vida Compaa de Seguros S.A.,
Chairman of Bice Hipotecaria S.A. and Director of
Santiago Stock Exchange since April 24, 2012.
NICHOLAS DAVIS LECAROS
Director
Chairman of EuroAmerica S.A., EuroAmerica Se-
guros de Vida S.A., EuroAmerica Administradora
General de Fondos S.A. and EuroAmerica Servi-
cios Financieros S.A. Director of Santiago Stock
Exchange since April 24, 2012.
JAIME LARRAN VIAL
Director
Broker of Santiago Stock Exchange since
November 11, 1974. Partner at brokerage house
Jaime Larran y Ca., Corredores de Bolsa Ltda.
Director of Santiago Stock Exchange since April
27, 2000.
PABLO YRARRZAVAL VALDS
Chairman
Partner at brokerage house Yrarrzaval y Ca.,
Corredores de Bolsa Ltda. Chairman of Ener-
sis S.A. Member of the board of Directors of
Santiago Stock Exchange since April 10, 1986.
Chairman of Santiago Stock Exchange since
January 17, 1989.
LEONIDAS VIAL ECHEVERRA
Vice Chairman
Partner at brokerage house Larran Vial S.A.,
member of the boards of Directors of Enersis S.A.,
Coca-Cola Embonor S.A., Watts S.A., Compaas CIC
S.A. and Ca. Industrial El Volcn S.A. Vice Chairman
of Santiago Stock Exchange since June 14, 1988.
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HERNN SOMERVILLE SENN
Director
Degree in law from Universidad de Chile. Mem-
ber of the boards of Directors of Enersis and
Inacap S.A., Director and partner of Fintec Ltda.
Director of Santiago Stock Exchange since April
24, 2012.
RODRIGO MANUBENS MOLTEDO
Director
Degree in business administration from Univer-
sidad Adolfo Ibez and Master of Science from
London School of Economics. Member of the
board of directors of Banco de Chile. Chairman of
Banchile Seguros de Vida. Director and Chairman
of Directors Committee of Aguas Andinas. Direc-
tor of Santiago Stock Exchange since May 27, 2013.
JUAN ANDRS CAMUS CAMUS
Director
Degree in business administration from Univer-
sidad Catlica de Chile Founding partner of Cel-
fin Capital. Member of the boards of Directors
of BTG Pactual Chile, AES Gener S.A. and Besalco
S.A. Director of Santiago Stock Exchange since
April 29, 2010.
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PATRICIO ROJAS SHAROVSKY
Chief Financial Offi cer
CARLOS NIEDBALSKI CHACN
Chief Audit and Control Offi cer
ANDRS ARAYA FALCONE
Chief Information Offi cer
JOS ANTONIO MARTNEZ ZUGARRAMURDI
Chief Executive Offi cer
/ MANAGEMENT /
We have consolidated and strengthened our leadership, keep-
ing in mind the challenges of participating in a dynamic, high-
ly competitive, globally-focused market. This market drives us
to constantly innovate, developing products and providing
high-quality services to our customers and to the entire domes-
tic securities market.
Throughout its 120 years of existence, the Santiago
Stock Exchange has established itself as Chiles most
important stock market and one of the most relevant
in the region. It has made considerable contributions
to the development of both capital markets and the
local economy, placing it in a excellent position it to
lead initiatives to foster future growth.
Santiago Stock Exchange has prioritized the de-
velopment of a sound stock market, integrated
with other international exchanges taking into
account the challenges involved in participating
in a dynamic, competitive and global market.
We have acquired the knowledge and handling
of innovative technologies, in partners with
world-wide leader suppliers, in order to fulfill
the business and normative requirements. Being
aligned with our customers has unabled us to
occupy a leading position, facilitating through
technology, the focus of our global market.
01 CORPORATE GOVERNANCE
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JUAN CARLOS PONCE HIDALGO
Chief Operating Offi cer
NICOLS ALMAZN BARROS
Chief Planning and Development Offi cer
RODRIGO SERRANO BOMBAL
Secretary General
Santiago Stock Exchange is a market with
multiple products and systems that connects
thousands of local and foreign investors, with
average trades of over US$ 2 billion in shares,
fixed-income instruments, money market in-
struments, investment fund quotas and for-
eign securities.
We have created important milestones and
made major contributions to the development of
the Chilean economy and capital market. With a
constant forward-looking vision, we have incor-
porated international trends and broadened the
offering of investing and financing alternatives
available to local and foreign issuers, brokers
and investors.
Santiago Stock Exchange has decisively con-
tributed to the development and progress of
Chile for over a century, through its profes-
sional and specialized contribution, to an area
of such importance for all, as is the growth of
the capital market.
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OUR / COMMITTEES /
BUSINESS AND TECHNOLOGY COMMITTEE /
This committee is responsible for evaluating and proposing measures
regarding the functioning and development of trades and the use of
technology by Santiago Stock Exchange.
MEMBERS:
STANDING MEMBERS
> Juan Andrs Camus Camus
> Nicholas Davis Lecaros
> Juan Andrs Fontaine
> Hernn Somerville Senn
> Leonidas Vial Echeverra
ALTERNATES
> Maximiliano Vial
> Henry Comber Sigall
> Manuel Bulnes Muzard
REGULATIONS, RISK AND AUDIT COMMITTEE /
This committees function is to analyze and propose improvements
to the stock exchange s regulations as well as evaluate and monitor
established risk policies. On the other hand, it ensures the financial po-
sition and budgets for Santiago Stock Exchange as well as supervising
market monitoring and external and internal audits.
MEMBERS:
STANDING MEMBERS
> Eduardo Muoz Vivaldi
> Juan Eduardo Correa Garca
> Jaime Larran Vial
> Rodrigo Manubens Moltedo
> scar von Chrismar Carvajal
ALTERNATES
> Pedro Robles Echeverra
> Jaime Larran Concha
> Gonzalo Jimnez Parada
> Juan Pedro Santa Mara Prez
BEST PRACTICES COMMITTEE /
This committee is in charge of receiving and resolving complaints
amongst brokers or between brokers and their clients for violations of
the regulations of Santiago Stock Exchange and the laws that govern
the business.
MEMBERS:
STANDING MEMBERS
> Enrique Barros Bourie
> Leonidas Montes Lira
> Lisandro Serrano Spoerer
ALTERNATES
> Jorge Jaramillo Selman
> Jorge Tarzijan Martabit
ETHICS AND DISCIPLINE COMMITTEE /
This committee is responsible for hearing and resolving any controver-
sies that may arise among brokers over market transactions, applying the
Code of Ethics of Santiago Stock Exchange.
MEMBERS:
STANDING MEMBERS
> Patricio Parodi Gil
> Juan Pablo Ugarte Valds
ALTERNATES
> Marcos Comparini Fontecilla
> Jos Luis de la Rosa Muoz
> Gonzalo van Wersch Caldern
01 CORPORATE GOVERNANCE
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CHIEF AUDIT ANDCONTROL OFFICER
REGUL AT IONS, RISK AND AUDIT COMMIT TEE
BUSINESS AND TECHNOLOGY COMMIT TEE
BEST PRACT ICES COMMIT TEE
LEGAL COUNSEL
E THICS AND DISCIPL INE COMMIT TEE
CHIEF E XECUT IVE OFF ICER
SECRETARY GENERAL
CHIEF FINANCIAL OFFICER
CHIEF PLANNING AND DEVELOPMENT OFFICER
CHIEF INFORMATION OFFICER
CHIEF OPERATING OFFICER
ORGANIZATIONAL CHART /
BO
ARD
S O
F D
IREC
TOR
S
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2 MORE OPPORTUNITIES FOR ISSUERS, INTERMEDIARIES AND INVESTORSOUR STOCK EXCHANGE
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6 number of cases submitted to the santiago s stock exchange best practice committee by brokerage house customers in 2013
10 comprehensive custody audits to brokerage houses in 2013
39specific audits
3special audits
1 audit of broker closure
4,870,245
OPERATIONS / BEST PRACTICE COMMITTEE /
AUDITING AND CONTROL /
33 continuous monitoring reports
total trades conducted within the santiago stock exchange considering all markets
/
02 OUR STOCK EXCHANGE
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In 2013 we celebrated the 120th anniversary of Santiago Stock Exchange. As part of
these festivities, the immense effort to develop Derivatives Market, ETF Market and
Venture Market was applauded. Santiago Stock Exchange will continue to develop
these projects during 2014.
We also celebrated the initial public offering of a new company, Moller & Prez
Cotapo, the incorporation of new foreign stocks, the consolidation of the Integrated
Latin American Market (MILA), and the International Conference of the Ibero-
American Federation of Exchanges (FIAB).
Accreditation of intermediaries was another initiative undertaken in 2013. This project,
as with all the other achievements this year, aims to add value to the market.
/ OUR STOCK EXCHANGE / ACHIEVEMENTS 2013
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The SanTiago STock exchange
celebraTeS 120 YearS
On the year of its 120th anniversary, Santiago Stock
Exchange reaffirmed its leadership as the main stock
exchange in Chile and one of the most important in the
region. For more than a century, it has forged significant
achievements and contributions to the development of
the national economy and Chilean capital market. Today
its main challenges are to continue leading the market with
a solid outlook for the future, to ensure strict compliance
with the existing regulatory framework and to generate
new proposals for investors, issuers and intermediaries. As
part of the anniversary celebrations, the stock exchange
acknowledged 17 listed companies for more than 75 years.
Those listed for the entire 120 years include Banco de Chile,
Gasco and Compaa Sudamericana de Vapores.
immediaTe acceSS
To inTernaTional SecuriTieS
Starbucks, McDonalds, Coca-Cola, Walt Disney, 3M and
Nike, amongst others, are some of the 60 foreign com-
panies that were listed on Santiago Stock Exchange
during 2013, with the objective to generate immedi-
ate access to attractive international securities. Local
investors can now access these shares through their
regular brokerage house without the need of a foreign
account. This initiative is framed within Santiago s
Stock Exchange ongoing efforts to develop capital
markets and deliver new and diversified investment
alternatives.
20 13
inTernaTional STock markeT
conference
Santiago Stock Exchange organized and chaired the 40th
International Conference of the Ibero-American Federation
of Exchanges (FIAB) in 2013 with the aim of generating new
and lasting opportunities for interaction, networking, and
acquisition of knowledge across the Ibero-American secu-
rities industry. Seventeen countries and 23 stock exchang-
es from South America, Central America and Europe met
in Santiago, along with renowned international speakers
and participants from the Chilean capital market. Santiago
Stock Exchange has been a member of FIAB since 1973.
inTermediarieS accrediTaTion,
added Value for The markeT
The year 2013 marked the first accreditation process
for intermediaries, with 2,823 people accredited as
of December 31, 2013.
The accreditation process seeks to professionalize the
activity of brokers, and standardize an appropriate lev-
el of performance for both technical and professional
staff performing this service. The accreditation is man-
datory for the majority of people working at a broker-
age house as of January 1, 2014.
/ Achievements 2013 /
02 Our StOck ExchangE
Achieve ments
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2323
markeT debuT of The Year
The construction company Moller & Prez Cotapos was
the largest IPO of the year at Santiago Stock Exchange.
The operation grossed approximately USD 92 million,
placing 105 million shares, with more than 3.9 rights is-
sue, all at a price of CLP 400 each. This company makes
for a total of 227 listed companies at the end of 2013.
mila, a laTin
american benchmark
The Integrated Latin American Market (MILA) formed
by the stock exchanges and the depositaries of Lima,
Santiago and Bogota completed its second year of op-
erations as the most important multilateral securities
platform in Latin America. This was celebrated along
foreign investors in New York. During 2013, Standard &
Poors announced the launch of the MILA Sector Indi-
ces, which includes S&P MILA Financials and S&P MILA
Resources.
arriVal of eTf in local markeT
The first IPSA ETF began operating in September 2013
in Santiago Stock Exchange. The fund aims to replicate
the performance of this blue-chip index. For Santiago
Stock Exchange, this launch is an important step in the
development of a new market for locally issued ETFs
and a major achievement in its commitment to expand
the supply of securities, offering new and exciting
business opportunities to local and foreign investors.
During the first month of operations, this instrument
traded USD 25 million.
new VenTure markeT
in chile
Santiago Stock Exchange signed an agreement with
the subsidiary TSX Venture Exchange of the Canadian
Stock Exchange to create a venture market in Chile,
replicating the success achieved by this Canadian
company. This initiative required a survey of all
relevant policy changes necessary to incorporate the
mining exploration segment in the stock exchange.
Santiago Stock Exchange hopes to bring this project to
fruition in the coming years. New initiatives in the field
of venture capital are expected in the future.
20 13Achieve ments
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Santiago Stock Exchange has favored the construction and development of a strong securities mar-
ket, through the continuous search for new opportunities. There are multiple projects supporting
this objective, delivering innovative tools to customers that ensure optimal conditions to operate in
the capital market.
MILA: PROMOTING THE REGION AS A MAJOR INVESTMENT POLE
The Integrated Latin American Market (MILA) was conceived as an integration project of the ex-
changes and depositories of Chile, Peru and Colombia, with the aim to increase the exposure in these
countries markets. Since its launch in May 2011, it has gained significant attention within the inter-
national financial community, becoming an attractive pole of investment in Latin America.
MILA has been operating for two years and has achieved the objective of enhancing the supply of
products and opportunities for local and foreign investors. Furthermore, it has been the key support
for the financial transformation of the region.
To date, six investment funds have been created to follow MILA. There are also two sector indices
(S&P MILA Financials and S&P MILA Resources) and a special index (S&P MILA 40), all of which testify
to the current interest in this investment alternative.
As a result of this positive development, MILA now has new challenges to move towards its consol-
idation over the next few years. Work remains to harmonize market rules, clearing and settlement
rules, and tax and foreign exchange operations, under the frame of the Pacific Alliance. Additionally,
the market is expected to be promoted and disseminated amongst foreign investors to increase its
regional presence. It is also expected to include new types of instruments such as investment fund
quotas and ETFs, to incorporate international custodians, and strengthen settlement processes.
Important steps in MILAs growth include the advances achieved in the incorporation of the Mexican
securities market, scheduled for 2014. This will result in greater diversification and depth, delivering
further investment alternatives, both in the number of issuers as in the diversification of markets
and sectors.
mila has gained significant attention within the international financial community, becoming an attractive pole of investment in latin america.
/ OUR CHALLENGES / MAKING PROGRESS ON A MULTI - MARKET EXCHANGE
02 OUR STOCK EXCHANGE
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santiago stock exchange is working with toronto stock exchange (tsx), with the support of the mining ministry, to implement a venture
market for the mining industry.
SANTIAGO STOCK EXCHANGE VENTURE: NEW VENTURE MARKET FOR MINING
EXPLORATION IN CHILE
The strong growth experienced by the mining sector, its tremendous potential and its important
role in the Chilean economy have generated consensus between public and private stakeholders
regarding the need to involve the stock market in its financing.
Therefore, Santiago Stock Exchange signed an agreement in 2012 with Toronto Stock Exchange (TSX),
with the support of the Mining Ministry. The aim is to work together to implement a venture market
segment to provide a listing for mining companies that are still in the exploration phase.
The joint work of both stock markets seeks to learn from the successful experience of Toronto Stock
Exchange, particularly from TSX Venture Exchange, which specializes in companies that are still at an
exploration phase, aiming to replicate its business model and adapt it to the Chilean market.
The Canadian mining capital market has enjoyed several decades of development during which
financing mining has become highly specialized. This covers each element of the whole busi-
ness chainexploration, development and exploitationthrough its various participants: in-
termediaries, lawyers, analysts, institutional investors, natural investors, regulators and sup-
pliers of market infrastructure such as the stock exchange itself, depositories and clearing and
settlement houses. As a result, the Canadian market is currently the world leader in financing
mining projects, supported by a substantial base of junior companies and a large number of
investors who participate in this market.
In developed markets, the participation of junior mining companies in exploration investment rep-
resents between 50% and 60% of the total. Meanwhile in Chile they still represent less than 20%, so
the development of a specialized capital market for junior mining companies should increase their
participation and multiply that investment.
Bearing in mind that the expenditure estimates for mining exploration in Chile fluctuate between
USD 1.0 and 1.5 billion annually, this new market could release additional potential investment
for junior mining companies in the range of USD 500 to 750 million annually.
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DERIVATIVES MARKET: NEW INVESTMENT ALTERNATIVES FOR
SPECIALIZED INVESTORS
Santiago Stock Exchange is working in conjunction with local regulatory bodies to implement a de-
rivatives market, with the objective of furthering its spectrum of improved and innovative services
for customers. This project is reaching its final stages, and is waiting for the final regulatory changes
to be approved to begin operations.
This initiative has been developed with the participation and advice of BM&FBovespaa major
global derivatives marketand CCLV. This will strengthen and promote the development of a deriv-
atives market in Chile and open up new investment opportunities.
When in operation, this new market will allow progress in the diversification process, risk manage-
ment, and in the liquidity and depth of the domestic capital market, thanks to the sophisticated in-
struments it delivers to investors.
The derivatives market at Santiago Stock Exchange will begin with the trading of IPSA futures and US
dollar futures, to be followed in a second stage with fix income futures.
LEADERS IN THE DEVELOPMENT AND PROMOTION OF SUSTAINABLE PROCESSES IN
THE LOCAL SECURITIES MARKET
In 2013, Santiago Stock Exchange announced the launch of a bidding process to select an expert on
sustainability to develop a sustainability index for the stock market. The purpose of this index will
be to promote the incorporation of sustainable processes and socially responsible practices within
companies listed on the Chilean stock market, give greater visibility to those companies that comply
with relevant international standards and provide additional information to investors.
The process continues with a study of existing models in international markets, a study of the cur-
rent situation in Chile regarding sustainability, and the desing of a model to determine the methodol-
ogy to clasify companies participating in a sustainability index for Santiago Stock Exchange.
This initiative stimulated great interest and brought together a total of 17 expert institutions in sus-
tainability issues11 local entities and 6 internationalincluding institutions that generate indi-
ces, risk rating agencies, private consultants and academic partnerships. Santiago Stock Exchange,
as the local stock market leader, is creating incentives and developing options to encourage the in-
corporation of sustainable processes by companies listed on the Chilean stock exchange, thus help-
ing create value in those companies.
02 OUR STOCK EXCHANGE
the derivatives market will allow progress in the diversification process, risk management, and in the liquidity and depth of the domestic capital market, thanks to the sophisticated instruments it delivers to investors.
through the sustainability index, santiago stock exchange hopes to encourage the incorporation of sustainable processes by companies listed on the local stock exchange.
RESEA (31,5x21,5) INGLES.indd 26 15-04-14 12:19
-
2013the bidding process to
develop a sustainability
index was launched.
RESEA (31,5x21,5) INGLES.indd 27 15-04-14 12:19
-
02 NUESTRA BOLSAProyectos Bolsa de Santiago
DEBT
MONEYMARKET
BONDS
CFI
DERIVATIVES OPTIONSFUTURES
SHARESEQUITY MARKET
CURRENCY
RESEA (31,5x21,5) INGLES.indd 28 15-04-14 12:19
-
Page
29
the stock market will migrate the fixed income and money market trading systems to the new technological platform. this will give foreign investors direct access to this market.
CONNECTIVITY FOR INVESTORS, INTERMEDIARIES AND ISSUERS
Santiago Stock Exchange is continuously concerned with expanding the market and offers world
class technology services to meet the needs of investors, intermediaries and issuers.
Therefore, Santiago Stock Exchange is working on the migration of trading systems for fixed income
instruments (IRF) and money market instruments (IIF) on the new HT platform as the standard pro-
tocol for communication. This will give foreign investors direct access to the local debt market. In
addition, customers will have greater processing capacity and speed, access to new trading func-
tionality, easier order tracking, automatic transaction recording, and greater dissemination of infor-
mation through Market Data.
In parallel, Santiago Stock Exchange will migrate the current custody systems to the HT platform,
thereby improving the usability and functionality of the custody system. This will allow the user to
determine the value of deposits and withdrawals on-line, immediately reflect these in positions, con-
duct bulk entry of registries from their own back office systems, simplify the operating process for
the withdrawal and release of guarantees, and automate processes, controls and information flows.
RESEA (31,5x21,5) INGLES.indd 29 15-04-14 12:19
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Page
31
OUR / BROKERAGE HOUSES /
Santiago Stock Exchange supports brokerage houses in the expansion,
diversification and growth of their businesses to build together a more ac-
cessible, broad, dynamic and global market.
It also works to provide intermediaries with new alternatives and business
opportunities according to their challenges and needs, developing prod-
ucts and services that facilitate the commercial and operational manage-
ment of their clients.
In recent years, Santiago Stock Exchange has increased both the diversity
of financial instruments offered and connectivity by giving direct access
to their local and foreign clients.
SANTIAGO STOCK EXCHANGE DELIVERS BROKERAGE HOUSES ALTERNATIVES AND OPPORTUNITIES TO
SUPPORT THEIR COMMERCIAL AND BUSINESS MANAGEMENT.
Santiago Stock Exchange supports brokerage houses in the expansion, diversification and growth of their businesses.
RESEA (31,5x21,5) INGLES.indd 31 15-04-14 12:20
-
On November 27, 1893, Santiago Stock Exchange was founded, a momen-
tous step in the injection of vitality and dynamism to the Chilean economy.
Under the chairmanship of Jorge Montt, the decree was signed with an ini-
tial capital of CLP 50,000. Thus, share trading began with around 50 registe-
red companies that were mostly banks, mining, insurance, sodium nitrate
mines and livestock companies.
The iconic building that currently houses the stock exchange was opened
in 1917 after four years of construction.
Over the years, many events have affected the operations of Santiago
Stock Exchange. The economic crisis of the early 30s affected Chile and the
vast majority of countries. Until 1929, the stock market enjoyed a period of
prosperity; an economic boom that resulted from the favorable situation
both in the global and the Chilean economy. But in September 1929, this
positive trend came to an end. In 1930, there was a general collapse in the
value of securities.
The period from 1930 to 1960 was unpromising for stock trading. It began
with a deep depression, that ended in 1932 to give way to a stage of consi-
derable activity. With the coming into power of the Popular Front in 1938,
a process of deterioration began, related to expectations arising from the
impending Second World War.
a. Board of Directors dining hall, 1955; b. Side of the Santiago Stock Exchange building taken from the street, 1955; c. 50 years, article in Zig Zag; d. Building inauguration ceremony, 1917; e. Santiago Stock Exchange shareholders, 1925; f. Building framework; g. Rear facade; h. Staircase.
a.
b.
OUR FIRST 65 YEARS /
/ 120 YEARS / OF HISTORY
One year after the fiftieth anniversary of the creation of Santiago Stock
Exchange in 1944, gold coins and dollars began to be traded, thus opening
up a fledgling business that went beyond shares. However, just as today,
shares in listed companies continue to be the best-known instruments
that are traded on Santiago Stock Exchange. For this reason, in 1958 the
General Stock Prices Index (IGPA) was established, which brought together
all securities from the Chilean economys various sectors.
With a centuries-old history the main achievements of Santiago Stock Ex-
change intersect with the development of the Chilean economy and aim
to add depth to the stock market, integrate it with international financial
markets, incorporate new technologies available to the securities indus-
try, and strengthen participation of local and foreign investors in the Chi-
lean stock market.
02 OUR STOCK EXCHANGE
banco de chile, gasco s. a. and compaa sudamericana de vapores s. a. are pioneering companies that have been listed since the inception of santiago stock exchange.
RESEA (31,5x21,5) INGLES.indd 32 15-04-14 12:20
-
/ Timeline / igpa evolution 1958-2012, Milestones of santiago stock exchange and the chilean econoMy
-
IGPA evolutIon
1989
General Stock Price index (iGPa) iS created.
1958
the SantiaGo Stock exchanGe iS incorPorated aS a foundinG member of the ibero-american federation of exchanGeS, fiab.
1973
the Selective Stock Price index (iPSa) iS created.
1977
the firSt network of work StationS with real-time
information iS imPlemented.
the manual auction SyStem for fixed-income inStrumentS and
money market inStrumentS waS created, throuGh which the afPS
conduct their oPerationS.
1981
1981 1986 1999 2001 2007 2010
2011
the iPSa achieved annual Growth record in Stock market
hiStory of 139.4%.
the telePreGon SyStem waS created, the firSt comPuterized
Stock tradinG SyStem.
incorPoration of SantiaGo Stock exchanGe into the world
federation of exchanGeS (wfe) and the creation of the
inveStment fund quota market.
SantiaGo Stock exchanGe celebrateS 100 ye arS of hiStory
and unveilS a new electronic quotation board.
the electronic auction SyStem for fixed-income inStrumentS and money market
inStrumentS waS created, allowinG direct ParticiPation by inStitutional inveStorS:
afPS, inSurance comPanieS, mutual fundS, bankS and brokeraGe houSeS.
SantiaGo Stock exchanGe beGinS oPeratinG in the
foreiGn SecuritieS market
a local exchanGe traded fund (etf) that followS
the iPSa iS launched in chile.
the new tradinG SyStem for equitieS telePreGon ht beGinS
oPeratinG.
the comPany cclv, contraParte central S.a. StartS oPeratinG. thiS iS a new comPany formed by SantiaGo Stock exchanGe for the Settlement of Stock
exchanGe tranSactionS.
the comPany SelectionS for the iPSa and iGPa are amended,
and indiceS for mid-, larGe- and Small-caP comPanieS are
created.
Sector indiceS are officially launched on SantiaGo Stock
exchanGe.
the on-line SyStem of debt SettlementS iS
imPlemented.
Sebra iS imPlemented aS the comPuterized SyStem
for SantiaGo Stock exchanGe oPerationS.
the iPSa chanGeS to a SinGle baSe of 1,000 PointS.
tranSactionS beGin in the emerGinG comPanieS
market.
1986 1988 1991 1993 2000 201220102007200520032002
corPorationS law iS enacted.
the PenSion fund adminiStratorS (afP) are created, becominG the PrinciPal
inStitutional inveStorSin the Stock market.
1984
the ProceSS of PrivatizinG chilean State-ownedenterPriSeS beGinS.
the afPS are authorizedto inveSt in StockS.
take-overS and merGerSlaw iS enacted.
caPital market i iS enacted, followed by law 19.768 and
19.769 makinG tax chanGeS and makinG inveStmentS more flexible
for mutual fundS, inSurance comPanieS, amonGSt otherS
caPital market ii iS enacted, law 20,190, introducinG tax and
inStitutional chanGeS to Promote the venture caPital induStry,
and the caPital market S modernization continueS.
law 20,448 for the caPitalmarket iii which introduceS a SerieS of reformS in termS of
liquidity, financial innovation and inteGration in the caPital
market iS PromulGated.
the new law on corPorate Governance comeS into force.
the Self-reGulation committee of SantiaGo Stock exchanGe iS
created.
the inteGrated latin american market (mila) beGinS
oPerationS, brinGinG toGether the Stock exchanGeS of
SantiaGo, lima and colombia.
2009
exchanGe traded fundS (etfS) beGin to be traded in the foreiGn Stock market of SantiaGo Stock
exchanGe.
mile
Ston
eS in
the c
hile
an ec
onom
ySa
ntia
Go St
ock
exch
anGe
mile
Ston
eS
-
Page
33
c. d.
e.
f. g. h.
RESEA (31,5x21,5) INGLES.indd 33 15-04-14 12:20
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3CAPITAL MARKET DEVELOPMENT IN FIGURES
OUR ECONOMY AND STOCK MARKET IN 2013
RESEA (31,5x21,5) INGLES.indd 35 15-04-14 12:20
-
Sources: National Statistics Institute (INE), Chilean Central Bankl ((1) = World Bank 2012
POPULATION:
17.46 MM(1)
PIB PER CPITA (PPP):
USD 22,636(1)
UNEMPLOYMENT:
5.7 %
RATING:
A+ ; AA-
EXPORTS:
USD 77,368 MM
TRADE BALANCE:
USD 74,990 MM
TRADE BALANCE:
USD 2,377 MM
INFLATION:
3.0 %
GDP GROWTH:
4.1 %
GDP:
USD 269.9 B(1)
/ THE ECONOMY / IN FIGURES
03 OUR ECONOMY AND STOCK MARKET IN 2013
RESEA (31,5x21,5) INGLES.indd 36 15-04-14 12:20
-
Page
37MM
CH$ D
E 200
8
ANNU
AL V
ARIA
TION
0
100,000,000
120,000,000
80,000,000
60,000,000
40,000,000
20,000,000
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
PIB ANNUAL VARIATION
2004
76,987,661
7.02%
2005
81,742,969
6.18%
2006
86,397,688
5.69%
2007
90,856,522
5.16%
2008
93,847,932
3.29%
2009
92,875,262
-1.04%
2010
98,227,638
5.76%
2011
103,963,086
5.84%
2012
109,558,126
5.38%
2013
114,022,307
4.07%
PIB
ANNUAL VARIATION
OTHER
CORPORATE SERVICES
MINING
PERSONAL SERVICES
MANUFACTURING
COMMERCE
CONSTRUCTION
FINANCIAL SERVICES
PUBLIC ADMINISTRATION
HOUSING SERVICES
TRAN
SPOR
TATIO
N16%
16%
12%
12%
11%
9%
9%
5%
5%5%
4%
GROSS DOMESTIC PRODUCT 2004 -2013 /
GDP PER INDUSTRY /
Source: Chilean Central Bank
Source: Chilean Central Bank
this represents a decrease with respect to
2010, 2011 and 2012.
4.1%the change in the
gross domestic
product estimated for
2013 is
Other sectors with
relevant contributions
include manufacturing,
commerce and
construction.
40%
corporate services,
personal services
and mining together
contributed more than
of the Chilean gross
domestic product.
RESEA (31,5x21,5) INGLES.indd 37 15-04-14 12:20
-
CHANGE IN MONTHLY ECONOMIC ACTIVITY INDICATOR (IMACEC) 2013 /
0.00%
7.00%
JAN
6.40%
FEB
4.10%
MAR
3.70%
APR
4.40%
MAY
3.60%
JUN
4.10%
JUL
5.60%
AUG
4.30%
SEP
4.30%
OCT
2.80%
NOV
2.80%
DEC
2.60%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
%
Source: Chilean Central Bank
CHANGE ANNUAL CPI 2000 - 2013 /
-2.00%
CPI
10.00%
8.00%
6.00%
4.00%%
2.00%
0.00%
2000
4.53%
2001
2.64%
2002
2.82%
2003
1.07%
2004
2.43%
2005
3.66%
2006
2.57%
2007
7.82%
2008
7.09%
2009
-1.38%
2011
4.44%
2010
2.97%
2012
1.49%
2013
3.01%
Source: National Statistics Institute (INE)
October, november and december posted the lowest
growth, below 3%.
JAN | JULmonths posting
strongest economic
figures in 2013
in line with the average
for the past four years. 3.01%In 2013, the consumer price index posted an annual variation of
03 OUR ECONOMY AND STOCK MARKET IN 2013
RESEA (31,5x21,5) INGLES.indd 38 15-04-14 12:20
-
Page
39
Source: National Statistics Institute (INE)
5.20%
6.60%
FEB
6.2%
MAR
6,2%
APR
6.4%
MAY
6.4%
JUN
6.2%
JUL
5.7%
AUG
5.7%
SEP
5.7%
OCT
5.8%
NOV
5.7%
DEC
5.7%
6.40%
6.20%
6.00%
5.80%
5.60%
5.40%
UNEMPLOYMENTRATE
JAN
6.0%
%
UNEMPLOYMENT RATE 2013 /
-0.60%
0.80%
CHANGE (%)
0.60%
0.40%
0.20%
0.00%
-0.20%
-0.40%
JAN
0.17%
FEB
0.12%
MAR
0.39%
APR
-0.48%
MAY
-0.01%
JUN
0.64%
JUL
0.26%
AUG
0.25%
SEP
0.54%
OCT
0.14%
NOV
0.38%
DEC
0.59%
%
CHANGE IN CPI (LTM) IN 2013 /
Source: National Statistics Institute (INE)
may and april reported the lowest
variations.
JUN / SEPT / DECThe months with
the highest change
CPI were
during 2013, unemployment rates remained
low, ending the year at 5.7%, which is 0.7%
lower than the months with the highest
rates (april and may).
unemployment rate for
last quarter of 2013.5.7%
RESEA (31,5x21,5) INGLES.indd 39 15-04-14 12:20
-
Source: Chilean Central Bank
BALANCE OF PAYMENTS 2003 - 2013 /
MMUS
$
-6,000
4,000
2,000
0
-2,000
-4,000
6,000
8,000
10,000
12,000
14,000
16,000
1,647.7
306.5
-366.8
-190.8
-365.6
BALA
NCE O
F PAY
MENT
S
14,190.1
3,023.8
6,444.2
-3,214.1
1,997.4
1,715.7
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
TRADE BALANCE 2003 - 2013 /
MMUS
$
0
2003
3,765.4
21,650.9
17,885.5
2004
10,156.1
33,025.4
22,869.3
2005
11,309.5
41,974.0
30,664.5
2006
22,946.8
59,380.2
36,433.4
2007
24,13.8
68,561.4
44,429.6
2008
6,074.1
64,510.1
58,436.0
2009
15,360.0
55,462.7
40,102.6
2010
15,634.3
71,108.6
55,474.2
2011
10,544.5
81,455.2
70,910.8
2012
3,421.9
78,277.0
74,855.1
2013
2,377.4
77,367.5
74,990.0
90,000
50,000
40,000
30,000
20,000
10,000
60,000
70,000
80,000
TRADE BALANCE EXPORTS IMPORTS
TRADE BALANCE
EXPORTS
IMPORTS
Source: Chilean Central Bank
2,377 for 2013, exports of mmus$77,367 and imports
of mmus$ 74,990 were reported, giving a positive trade balance of mmus$ 2,377.
Positive trade
balance of
MMUS$
the balance of payments for 2013 was slightly
positive with a surplus of mmus$ 306.5. this is in line with 2012 but well below the surplus
of mmus$ 14,190 recorded in 2011.
03 OUR ECONOMY AND STOCK MARKET IN 2013
RESEA (31,5x21,5) INGLES.indd 40 15-04-14 12:20
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Page
41
CENTRAL BANK INTERNATIONAL RESERVES 2000 - 2013 /
Source: Chilean Central Bank
MMUS
$
0
INTERNATIONAL RESERVES
30,000
20,000
15,000
10,000
5,000
35,000
40,000
45,000
25,000
2001
14,400
2002
15,351
2003
15,851
2004
16,016
2005
16,963
2006
19,429
2007
16,910
2008
23,162
2009
25,373
2010
27,864
2011
41,979
2012
41,650
2013
41,094
2000
15,110
EVOLUTION OF THE AVERAGE DOLLAR 2000 - 2013 /
430.00
DOLLARVALUE
730.00
680.00
630.00
580.00
530.00
480.00
2000
472.28
2001
634.76
2002
689.50
2003
69.04
2004
609.48
2005
559.68
2006
530.34
2007
522.55
2008
522.35
2009
559.15
2010
510.22
2013
495.18
2012
486.59
2011
483.57
CHILE
AN P
ESOS
PER
DOL
LAR
Source: Chilean Central Bank
the chilean central banks international
reserves decreased slightly with respect
to 2011 and 2012, but continued to be over
mmus$ 40,000.
which is slightly above 2011
and 2012 but still beneath
the ch$ 500 threshold.
$495.18
the average
dollar for the
year 2013 was
RESEA (31,5x21,5) INGLES.indd 41 15-04-14 12:20
-
AVERAGE REAL ANNUAL INTEREST RATE2000 - 2013 /
REAL
ANN
UAL I
NTER
EST R
ATE
0.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
REAL ANNUALINTEREST RATE
2000
5.17
2001
3.74
2002
1.94
2003
1.76
2004
1.07
2005
1.89
2006
2.83
2007
2.20
2008
2.23
2009
3.13
2011
2.44
2010
1.31
2012
3.50
2013
2.89
Source: Chilean Central Bank
Source: Chilean Central Bank
AVERAGE MONTHLY DOLLAR 2013 /
CHILE
AN P
ESOS
PER
DOL
LAR
430.00
550.00
530.00
510.00
490.00
470.00
450.00
DOLLAR VALUE
JAN
472.28
FEB
472.42
MAR
472.44
APR
472.1
MAY
480.94
JUN
503.26
JUL
505.34
AUG
512.32
SEP
504.26
OCT
500.96
NOV
520.35
DEC
529.2
This is 0.61% lower than the prior year
figure. The average since 2000 is 2.58%.
2.89%the average
annual interest
rate in 2013 was
during 2013, the u.s. dollar appreciated
9.4% with respect to the chilean peso. the
greatest increases were reported in june and
november.
was the dollar appreciation
with respect to the Chilean
pesos9.4%
03 OUR ECONOMY AND STOCK MARKET IN 2013
RESEA (31,5x21,5) INGLES.indd 42 15-04-14 12:20
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Page
43
In 2013, traded volumes and number of trades on Santiago Stock Ex-
change increased sharply, expanding the market by 13.5% over 2012,
with the debt market leading the way. The equity market remained sta-
ble regarding the prior year with total traded volumes of MMUS$ 46,501.
In a particularly complex period for the equity market Selective Stock
Price Index (IPSA) fell 14% during the yearinvestors sought refuge in the
debt market, which explains the stability in the equity market and growth
in money market and fixed-income securities.
The foreign securities market doubled its traded volume from 2012 with
transactions totaling MMUS$ 138 and number of trades rising 210% over
the prior year. This can be explained by a sharp rise in recent listings of fore-
ign securities, increasing from 544 in 2012 to 678 in December 2013.
One of the highlights of the year was the implementation of the first ex-
change traded fund (ETF) indexed to the Selective Stock Price Index (IPSA),
launched in September 2013. This ETF recorded daily total traded volumes
of MMUS$ 589,646.
TOTAL TRADED VOLUME AND NUMBER OF TRADES IN 2013 /
/ SUMMARY 2013 / OF THE STOCK MARKET
SHARP INCREASE IN SANTIAGO STOCK EXCHANGE DEBT MARKET IN 2013 /
total traded volume recorded by santiago stock exchange
in 2013, considering all markets, amount to mmus$ 1,098,044, exceeding total traded volumes in 2012 by 13.5%. the total
number of trades in 2013 exceeded 2012 figures by 8.1%.
1,098,044total traded volume
in 2013
MMUS$
400,000
350,000
500,000
450,000
300,000
250,000
200,000
150,000
100,000
50,000
TOTA
L TRA
DED
VOLU
ME (M
MUS$
)
TOTA
L TRA
DES
0
120,000
100,000
80,000
60,000
40,000
20,000
0
TOTAL TRADED VOLUME (MMUS$) TOTAL TRADES
FEB
78,110
354,105
JAN
93,290
424,683
MAR
78,173
376,454
APR
90,869
391,891
MAY
101,779
405,998
JUN
96,484
444,943
JUL
98,844
435,088
AUG
90,918
422,865
SEP
85,079
404,996
OCT
97,719
430,038
NOV
95,331
397,348
DEC
91,446
381,836TOTAL TRADES
TOTAL TRADED VOLUME (MUS$)
(*) FIGURES EXPRESSED IN MILLIONS US DOLLARS.
RESEA (31,5x21,5) INGLES.indd 43 15-04-14 12:20
-
IPSA INDEX IN 2013 /
03 OUR ECONOMY AND STOCK MARKET IN 2013
INDE
X
CHAN
GE (%
)
0
4,000
3,500
5,000
4,000
3,000
2,500
2,000
1,500
1,000
500
-6,00%
-8,00%
-10,00%
-4,00%
-2,00%
0,00%
2,00%
4,00%
6,00%
8,00%
INDEX (POINTS) CHANGE (%)
01-2013
4,552.40
5.83%
02-2013
4,558.46
0.13%
03-2013
4,432.14
-2.77%
04-2013
4,292.14
-3.15%
05-2013
4,191.26
-2.35%
06-2013
4,029.67
-3.85%
07-2013
3,732.54
-7.37%
08-2013
3,628.73
-2.78%
09-2013
3,823.85
5.37%
10-2013
3,912.44
2.31%
11-2013
3,789.06
-3.15%
12-2013
3,699.19
-2.37%
INDEX (POINTS)
CHANGE (%)
during 2013 the ipsa, blue-chip index of the sse, fell 14%. which compares
unfavorably with the 3% rise in 2012.
The IPSA fell
during 2013 14%
PARTICIPATION BY MARKET 2013 /
in 2013, more than half of the total trades
on the santiago stock exchange were in
money market instruments, followed by
currency market with 26.1% of transactions.
equities trading represented 4.3% of total
transactions.
51.4%Money MarketINVESTMENT FUND QUOTAS 0.1%
STOC
KS 4.3%
FIXED - INCOME
MONEY MARKET
CURRENCY
51,4%
18,2%
26,1%
FOREING SECURITIES 0,01%
RESEA (31,5x21,5) INGLES.indd 44 15-04-14 12:20
-
Page
45
STOCK MARKET INDICES OF SANTIAGO STOCK EXCHANGE CHANGE IN 2013 /
INDE
X
% CHANGE
IPSA-14.00
IGPA-13.49
INTER-10-16.80
IGPA SMALL-14.92
IGPA LARGE-14.43
COMMODITIES-21.90
CONST.&INMOB.-36.03
CONSUMO-12.96
INDUSTRIAL-22.20
RETAIL-15.91
BANCA-1.56
UTILITIES-2.14
IGPA MID-5.95
0.00
-15.0
0
-20.
00
-25.0
0
-10.
00
-5.0
0
-30.
00
-35.0
0
-40.
00
RESEA (31,5x21,5) INGLES.indd 45 15-04-14 12:20
-
ONE STOCK EXCHANGE, MULTIPLE MARKETS /
Santiago Stock Exchange provides various markets which currently
trade more than USD 2.0 billion daily in shares, fixed-income instru-
ments, money market instruments, investment fund quotas and for-
eign securities.
During the last decade, Santiago Stock Exchange has been expanding
its activities by rising above its local scope to become a focus of in-
terest to global investors and a strategic partner with various stock
exchanges in the region. Highlights include the commitment with
BM&FBovespa in Brazil to develop the new derivatives market, the as-
sociation with the Colombian and Peruvian stock exchanges to create
the Integrated Latin American Market MILA, and the joint project with
a Canadian stock exchange to develop a venture market with a focus
on mining.
PARTICIPATION BY MARKET (2004 - 2013) /
Also, Santiago Stock Exchange has prioritized the supply of new secu-
rities, such as the creation of tradable investment fund quotas, ETFs,
and the derivatives market. The regulations for this latest initiative are
in the final approval stage with regulatory bodies, after which the proj-
ect will proceed. It will be an important step for the local market, sup-
porting significant progress in diversification and risk management,
and adding liquidity and depth to the domestic capital market.
over the past 10 years, money market
transactions represent 49% of the total
number of transactions carried out in
santiago stock exchange, fixed income
transactions represent 25.7%, currency
transactions represent 19.2%, and stock
trading represents 5.9%.
THE SANTIAGO STOCK EXCHANGE OFFERS LOCAL AND FOREIGN INVESTORS THE OPPORTUNITY TO
PARTICIPATE IN MULTIPLE MARKETS THAT HAVE BEEN DEVELOPED ALONG WITH THE CAPITAL MARKET.
FOREIGN SECURITIES 0,01% INVESTMENT FUND QUOTAS 0,1%
STOC
KS
FIXED-INCOME
MONEY MARKET
CURRENCY
49%
25,7%
19,2%
5,9%
Money
market 49%Fixed
Income 25.7%
03 OUR ECONOMY AND STOCK MARKET IN 2013
RESEA (31,5x21,5) INGLES.indd 46 15-04-14 12:20
-
Page
47
IPSA INDEX GROWTH 2004 - 2013 /
STOCK MARKET INDICES FOR THE SANTIAGO STOCK EXCHANGE2004 - 2013 /
CHAN
GE (%
)
INDE
X
0
5,000
4,000
3,000
2,000
1,000
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
INDEX CHANGE (%)
2004
1,796.48
20.99%
2005
1,964.47
9.35%
2006
2,693.22
37.09%
2007
3,051.83
13.31%
2008
2,376.42
-22.13%
2009
3,581.42
50.70%
2010
4,927.53
37.58%
2011
4,177.53
-15.22%
2012
4,301.38
2.96%
2013
3,699.19
-14.00%
INDEX
CHANGE
(*) THE CHANGE (%) CORRESPONDS TO THE PERIOD 2007 - 2013.
VARI
ACI
N (%
)
-50
200
150
105.9
1
103.3
7
144.
66
121.6
4(*)
-6.5
1(*)
-18.52
(*)
54.12
(*)
-6.55
(*)
30.2
9(*)
41.9
1(*)
20.2
8(*)
80,4
6(*)
20.2
2(*)
50
100
0
NDICE
IPSA
IGPA
INTE
R-10
IGPA
SMAL
L
IGPA
MID
IGPA
LARG
E
BANC
A
COMM
ODITI
ES
CONS
T. &
INMO
B.
INDU
STRI
AL
RETA
IL
UTILI
TIES
CONS
UMO
between 2004 and 2013, the ipsa increased
by 106% from 1,796.48 as of year-end 2004
to 3,699.19 as of year-end 2013.
IPSA
increase106%
RESEA (31,5x21,5) INGLES.indd 47 15-04-14 12:20
-
TOTA
L TRA
DED
VOLU
ME (M
MUS$
)
TRAD
ES
00
2004
20,094
426,964
2005
27,724
629,329
2006
39,909
656,391
2007
62,140
996,010
2008
44,212
869,387
2009
47,593
1,047,832
2010
62,117
1,882,672
2011
58,713
2,234,004
2012
46,603
1,968,889
2013
46,501
2,137,447TRADES
TOTAL TRADEDVOLUME (MMUS$)
TOTAL TRADED VOLUME (MMUS$) TRADES
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2,000,000
2,500,000
1,500,000
1,000,000
500,000
(*) FIGURES EXPRESSED IN MILLIONS US DOLLARS.
EQUITY MARKET GROWTH 2004 - 2013 (*) /
INVESTMENT FUND QUOTAS (CFI) MARKET GROWTH 2004 - 2013 (*) /
4,000
5,000
6,000
3,000
2,000
1,000
0
500
1,000
1,500
2,000
2,500
3,000
TOTA
L TRA
DED
VOLU
ME (M
MUS$
)
2004
310
209
2005
249
332
2006
916
657
2007
2,124
971
2008
1,471
999
2009
891
1,734
2010
1,276
2,461
2011
1,069
2,895
2012
1,175
3,717
2013
1,070
5,693TRADES
TOTAL TRADEDVOLUME (MMUS$)
TOTAL TRADED VOLUME (MMUS$) TRADES
TRAD
ES
(*) FIGURES EXPRESSED IN MILLIONS US DOLLARS.
0
significant growth has been
obtained over the past 10 years,
both in number of trades and
total traded volume.CFI
in 2007, the equity market recorded the
highest annual number of trades in
chilean stock market history, reaching
total traded volume of mmus$ 62,140
Highest total
traded volume in
history 62,140MMUS$
03 OUR ECONOMY AND STOCK MARKET IN 2013
RESEA (31,5x21,5) INGLES.indd 48 15-04-14 12:20
-
Page
49
600,000
700,000
500,000
400,000
300,000
200,000
100,00050,000
100,000
150,000
200,000
250,000
300,000
350,000
TOTA
L TRA
DED
VOLU
ME (M
MUS$
)
TRAD
ES
0 0
2004
194,534
458,039
2005
190,318
495,631
2006
153,907
596,636
2007
181,778
591,438
2008
199,962
510,857
2009
234,923
504,885
2010
201,378
368,218
2011
241,545
351,911
2012
172,988
303,095
2013
199,948
318,543TRADES
TOTAL TRADEDVOLUME (MMUS$)
TOTAL TRADED VOLUME (MMUS$) TRADES(*) FIGURES EXPRESSED IN MILLIONS US DOLLARS.
FIXED-INCOME INSTRUMENTS (IRF) MARKET GROWTH2004 - 2013 (*) /
MONEY MARKET INSTRUMENTS (IIF) MARKET GROWTH2004 - 2013 (*) /
400,000
500,000
600,000
700,000
800,000
900,000
300,000
200,000
100,000
TRAD
ES
TOTA
L TRA
DED
VOLU
ME (M
MUS$
)
0 0
TOTAL TRADED VOLUME (MMUS$) TRADES
2004
144,288
225,607
2005
219,999
353,924
2006
283,534
462,357
2007
337,602
577,780
2008
374,225
665,661
2009
400,230
758,911
2010
445,236
686,097
2011
479,345
736,328
2012
512,767
797,946
2013
564,204
823,052TRADES
TOTAL TRADEDVOLUME (MMUS$)
200,000
100,000
300,000
400,000
500,000
600,000
(*) FIGURES EXPRESSED IN MILLIONS US DOLLARS.
between 2004 and 2013, the number
of money market trades tripled and
traded volume quadrupled.Money Market
in 2013, the fixed-income instrument market recorded
total traded volumes of mmus$ 199,948 or 15.6% greater than in 2012.
Fixed-income
instrument
market 15.6%
RESEA (31,5x21,5) INGLES.indd 49 15-04-14 12:20
-
CURRENCY MARKET GROWTH 2004-2013 (*) /
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
600,000
400,000
200,000
150,000
50,000
100,000
250,000
300,000
200,000
350,000
400,000
TRAD
ES
TOTA
L TRA
DED
VOLU
ME
0 0
TOTAL TRADED VOLUME (MMUS$) TRADES
2004
65,317
197,316
2005
72,276
352,634
2006
81,371
517.185
2007
124,329
644,555
2008
110,619
729,578
2009
126,917
811,696
2010
167,585
1,041,325
2011
206,600
1,197,196
2012
234,043
1.431,015
2013
286,322
1,585,094TRADES
TOTAL TRADEDVOLUME (MMUS$)
(*) FIGURES EXPRESSED IN MILLIONS US DOLLARS.
FOREIGN SECURITIES MARKET GROWTH 2006 - 2013 (*) /
3,000
4,000
5,000
6,000
2,000
1,000
TRAD
ES
TOTA
L TRA
DED
VOLU
ME (M
MUS$
)
0
60
20
40
0
100
120
80
140
160
TOTAL TRADED VOLUME (MMUS$) TRADES
2006
24
484
2007
11
89
2008
0.1
2
2009
2
101
2010
75
677
2011
54
1,275
2012
69
1,663
2013
138
5,163TRADES
TOTAL TRADEDVOLUME (MMUS$)
03 OUR ECONOMY AND STOCK MARKET IN 2013
in the period 2004 to 2013, currency instrument
trades, grew by 703%. total traded volume
increased by 338%.
growth of
currency
instrument
trades.
703%
the foreign securities market is one of the fastest growing over the past eight years,
both in terms of number of trades and total traded volume. between 2006 and 2013,
the number of trades in this market (equity and etfs) grew by more than 10 times and
total traded volume increased fivefold.
Equities and
ETFs grew
by more than 10TIMES
RESEA (31,5x21,5) INGLES.indd 50 15-04-14 12:20
-
Page
51
TOTAL TRADED VOLUME AND NUMBER OF TRADES 2004 - 2013 /
3,000,000
4,000,000
5,000,000
6,000,000
2,000,000
1,000,000
400,000
200,000
800,000
600,000
100,000,000
100,200,000
TRAD
ES
TOTA
L TRA
DED
VOLU
ME (M
MUS$
)
0 0
TOTAL TRADED VOLUME (MMUS$) TRADES
2004
424,545
1,308,137
2005
510,571
1,831,852
2006
559,638
2,233,227
2007
707,973
2,810,754
2008
730,489
2,776,482
2009
810,554
3,125,058
2010
877,592
3,980,773
2011
987,272
4,522,334
2012
967,577
4,504,716
2013
1,098,044
4,870,245TRADES
TOTAL TRADEDVOLUME (MMUS$)
(*) FIGURES EXPRESSED IN MILLIONS US DOLLARS.
Over the past 10 years, the total volume traded on Santiago Stock Ex-
change, including all markets, has grown consistently, increasing from
MMUS$ 424,545 in 2004 to MMUS$ 1,098,044 in 2013, yielding a 158.6% in-
crease in that period.
This expansion was propelled by an increase in trading both on the floor
and electronically, which in both cases grew more than 260%. Also, total an-
nual number of trades grew by 272.3% during the period 2004 - 2013.
Santiago Stock Exchange demonstrates liquidity in each market, which is
reflected in the growth in total traded volume, and clearly indicates the
preference of issuers, brokers and investors.
THE INCREASE IN TOTAL TRADED VOLUME AND THE NUMBER OF TRADES AT SANTIAGO
STOCK EXCHANGE IN THE LAST DECADE ARE A DEMONSTRATION OF THE LIQUIDITY THAT
SANTIAGO STOCK EXCHANGE OFFERS TO ISSUERS, BROKERS AND INVESTORS.
PROMOTING LIQUIDITY IN THE DOMESTICSTOCK MARKET /
over the past 10 years, the total volume traded on the
santiago stock exchange, including all markets, has
grown consistently, increasing from mmus$ 424,545 in 2004 to mmus$ i,098,044 in 2013, yielding a 158.6% increase in that period.
increase in total
traded volume159%
RESEA (31,5x21,5) INGLES.indd 51 15-04-14 12:20
-
Santiago Stock Exchange has developed different projects that further
diversify financing options through the development of new markets, as
part of their constant mission to contribute to the growth of Chilean cap-
ital markets.
Being listed on Santiago Stock Exchange awards various benefits to com-
panies, such as immediate access to securities quotes, improvements in
trading conditions, permanent market valuation and automatic listing in
the Integrated Latin American Market (MILA).
Through an initial public offering on Santiago Stock Exchange, our
listed companies have access to an important source of capital, sup-
port from institutional investors, improvements in their debt to equity
ratio as a result of being valued at their economic value, and to pro-
fessional opportunities that come from separating ownership of the
company from its management.
The initial public offerings of companies linked to the salmon industry took shape between 2007 and 2012, within which AquaChile was ranked
as the largest IPO raising MMUS$ 372. Meanwhile, sports clubs were launched on the stock exchange between 2005 and 2009.
In the past ten years, there have been 25 initial public offerings, which have
been concentrated in sectors such as construction, agriculture, retail and
salmon farming. These initial public offerings have taken place as each of
these sectors in the Chilean economy has expanded and consolidated.
Stocks from more traditional sectors such as the financial and the indus-
trial sectors have been traded on the market almost since its inception.
Between the years 1994 to 2009, nine retail companies came to market,
the first being Parque Arauco with capital raised of MMUS$ 4, and the last
being Hites, with MMUS$ 43. In this sector, the most important IPO was the
Cencosud Group, which grossed over MMUS$ 257. The same pattern oc-
curred in the real estate and construction sector, between 1995 and 2002,
where an emblematic case was Socovesa whose demand for shares was
62 times the amount placed.
CAPITAL RAISED IN THE PAST 10 YEARS IPO VERSUS DEMAND /
0 0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
5,000,00062
2 5
86
59
16
22
6
8 8
5 3 1,5
70
60
50
40
30
20
10
4,500,000
AZUL
AZU
L
SOCO
VESA
ENJO
Y
HITE
S
CRUZ
ADOS
CAMA
NCHA
CA CFR
AMOU
NTS (
MCH$
)
BID-
TO-C
OVER
RAT
IO (A
MOUN
T BID
/ AM
OUNT
PLA
CED)
AQUA
CHILE
AUST
RALIS
CRUZ
BLA
NCA ILC
INGE
VEC
HORT
IFRU
T
E IZQ
UIER
DO
MOLL
ER
AMOUNT BID AMOUNT PLACED BID-TO-COVER RATIO (AMOUNT BID / AMOUNT PLACED)
SANTIAGO STOCK EXCHANGE OFFERS COMPANIES VARIOUS FINANCING ALTERNATIVES, ALLOWING THEM TO
RAISE CAPITAL IN VARIOUS MARKETS FOR THE EXPANSION AND DEVELOPMENT OF THEIR PROJECTS.
MULTIPLE FINANCING OPPORTUNITIES FOR ISSUERS /
03 OUR ECONOMY AND STOCK MARKET IN 2013
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Page
53
MAIN FIGURES FROM THE MOST RECENT 15 IPOS /
WEIGHTED-AVERAGE PLACEMENT (% INTEREST)
32%
AVERAGE FUNDS RAISED (MMUS$)
US 151,8
AVERAGE PLACEMENT PRICE (USD)
US 1,5
AVERAGE % CHANGE INDEX OF IPO
2% 3% 6%day week 52 weeks
in the last 15 ipos, the average amount placed exceeded the
companys capital by 30%, and the percentage change in their
share price during the day, week and year following placement
has shown positive trends.
30%The percentage average placement exceeds
RESEA (31,5x21,5) INGLES.indd 53 15-04-14 12:20
-
SEGMENTATION OF INVESTORS FROM THE LAST 15 IPOs /
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
%
HORT
IFRU
T
INGE
VEC
CRUZ
BLA
NCA
SALU
D
AQUA
CHILE
MOLL
ER
ECHE
VERR
A IZ
QUIE
RDO ILC
AUST
RALIS
SEAF
OODS
CFR
PHAR
MAC
EUTI
CALS
CAMA
NCHA
CA
CRUZ
ADOS
HITE
S
ENJO
Y
AZUL
AZU
L
SOCO
VESA
RELATED TO ISSUER RETAILNIMS FOREIGN INSTITUTIONAL AFP (PENSION FUND ADMINISTRATOR)
03 OUR ECONOMY AND STOCK MARKET IN 2013
as various economic sectors in chile expand and consolidate, companies see santiago stock exchange as an attractive financing opportunity.
At present, Santiago Stock Exchange includes 227 companies listed in
the equity market, 146 listed in the fixed income market, 58 listed in
the money market, 117 in investment funds, 401 in foreign securities
and 277 in MILA.
In 2010, Santiago Stock Exchange created the Issuers Area, a direct com-
munication channel with current and potential issuers. Ongoing infor-
mation and constant contact have allowed us to develop products and
services to suit our issuers needs.
RESEA (31,5x21,5) INGLES.indd 54 15-04-14 12:20
-
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55
RESEA (31,5x21,5) INGLES.indd 55 15-04-14 12:21
-
RESEA (31,5x21,5) INGLES.indd 56 15-04-14 12:21
-
4 COMPREHENSIVE SERVICEFOR OUR CUSTOMERSOUR PRODUCTS AND SERVICES
RESEA (31,5x21,5) INGLES.indd 57 15-04-14 12:22
-
Universal connectivity services to enable orders to be sent directly to
the Stock Exchange.Electronic quoting and trading platform.
Exchange transaction access for brokerage houses.
Products and services focused on the distribution of market information.
Identifi cation and manage-ment of securities issuers.
Clearing and settlement service for securities trans-actions.
BUSINESSUNITS
DMA CONNECTIVITY
SERVICES
LISTING
INFORMATION SYSTEMS AND
SERVICES
TRADE WORK STATION
STOCK EXCHANGE
ACCESS
CCLV
FRONT, MIDDLE AND BACK OFFICE SOLUTIONS
Technological solutions to support an entitys operational, fi nancial and commercial management.
04 OUR PRODUCTS AND SERVICES
RESEA (31,5x21,5) INGLES.indd 58 15-04-14 12:22
-
Page
59
THROUGHOUT THE HISTORY OF SANTIAGO STOCK EXCHANGE COMPREHENSIVE
SECURITIES SOLUTIONS HAVE BEEN PROVIDED TO BOTH BROKERAGE HOUSES
AND FINANCIAL INSTITUTIONS AND INVESTORS. WE HAVE PARTICIPATED IN OUR
CUSTOMERS ENTIRE VALUE CHAIN, EXPANDING MARKETS, MINIMIZING RISKS AND
OFFERING EXCEPTIONAL SERVICES.
The development of the domestic capital market and the professionalization of financial institu-
tions have enabled Santiago Stock Exchange to define priorities that include creating new markets
and securities, as well as products and services that deliver comprehensive solutions to customers.
Santiago Stock Exchange has developed seven vertically integrated business units within the secu-
rities industry. This business model achieves greater efficiency in infrastructure use, greater econo-
mies of scale and comprehensive management of the business.
/ COMPREHENSIVE SERVICE / FOR OUR CUSTOMERS
currently santiago stock exchange has
seven business units, the latest being dma
connectivity services (direct market access)
and cclv (central counterparty)
7 businessunits
RESEA (31,5x21,5) INGLES.indd 59 15-04-14 12:22
-
04 OUR PRODUCTS AND SERVICES
RESEA (31,5x21,5) INGLES.indd 60 17-04-14 12:26
-
Page
611ge
61PaP
Initially, the main service offered by the Stock Exchange was trading shares, in a market physica-
lly restricted to brokers. Over time, Santiago Stock Exchange launched electronic systems which
allowed institutional investors to participate in real time in the stock market. This has resulted in a
significant increase in total traded volume in the stock and debt markets.
Santiago Stock Exchange guarantees the back-up, efficiency and transparency of all its pro-
ducts and services with world class technology, supported at all levels by a comprehensive and
solid infrastructure.
/ FROM ROUTING / TO BACK OFFICE
In recent years, the main stock market in Chile has strengthened the growth of its customers entire value
chain, diversifying markets, enhancing its products and services, incorporating new instruments, promot-
ing liquidity and developing its trading and post-trading services.
Santiago Stock Exchange provides solutions throughout all the different stages of a securities transaction:
routing, trading, information, back-office, clearing and settlement.
STOCKS
BONDS
MONEY MARKET INSTRUMENTS
DERIVATIVES
ROUT ING TRADING BACK OFF ICECLEARING AND
SE T TLEMENTINFORMAT ION
with the implementation of order routing
for the debt market and the launch of
the derivatives market in 2014, santiago
stock exchange will complete its spectrum
of services for all stages of a securities
transaction.
RESEA (31,5x21,5) INGLES.indd 61 15-04-14 12:23
-
Santiago Stock Exchange has designed various business units with the aim of strengthening and broadening the Chilean capital market. These offer a wide range of products and services to various stakeholders that enable them to access multiple opportunities for investment, diversifi ca-tion and fi nancing.
ALL PRODUCTS AND SERVICES AVAILABLE TO THE MARKET /
/ PRODUCTS AND SERVICES /
04 OUR PRODUCTS AND SERVICES
RESEA (31,5x21,5) INGLES.indd 62 16-04-14 13:00
Santiago Stock Exchange has designed various business units with the aim of strengthening and broadening the Chilean capital market. These offer a wide range of products and services to various stakeholders that enable them to access multiple opportunities for investment, diversifi ca-tion and fi nancing.
ALL PRODUCTS AND SERVICES AVAILABLE TO THE MARKET /
/ PRODUCTS AND SERVICES /
04 OUR PRODUCTS AND SERVICES
RESEA (31,5x21,5) INGLES.indd 62 16-04-14 13:00
-
Page
63
Specially designed for intermediaries and investor trading desks, this electronic platform facilitates
the quoting and trading of various types of securities, and the possibility to access all local market
information in one place.
The national network includes more than a thousand work stations, making this the leading trading
platform in the Chilean stock market.
ACCESS TO THE LARGEST TRADING NETWORK IN CHILE /
/ TRADE WORK STATIONS /
RESEA (31,5x21,5) INGLES.indd 63 15-04-14 12:23
-
SANTIAGO STOCK EXCHANGE
BROKERLIMIT
COSTUMER BROKER
FIXGATEWAY
TRADING ENGINESSE
Fix 4.4 Fix 4.4
DMA PRODUCTS
Modelo 1
Modelo 2
Modelo 3
Modelo 4
COSTUMER NETWORK
Fix 4.4
Fix 4.4
NETWORK
BROKERLIMIT
TARGETED
Fix 4.4
Fix 4.4BROKER
LIMIT
FROM ROUTING BROKERS TARGETED
Fix 4.4Co-Location *
Fix 4.4BROKER
LIMIT
Broker
Broker
Broker
Corredor
DIRECT CONNECTIVITY WITH SANTIAGO STOCK EXCHANGE /
/ DMA CONNECTIVITY SERVICES /
Santiago Stock Exchange has agreements with the most important global routing networks: ATG
(Americas Trading Group), Bloomberg, Fidessa, Marco Polo, Fix Flyer, Raptor and Sungard. These compa-
nies provide a range of services, which include connecting international investors to the local market.
DMA (Direct Market Access) connectivity services are targeted at investors and Santiagos Stock Ex-
change includes various alternatives for connecting with the intermediaries trading platforms. This
enables buy and sell orders to be routed automatically to these platforms in real-time. These services
use the most advanced trading technology available, delivering flexibility, security, reliability and
the shortest possible lapse between order receipt and execution.
Santiago Stock Exchange offers several connection types depending on the nature of the customer.
Therefore, a brokerage house may connect directly to Santiago Stock Exchange through DMA Broker,
or they may connect their investing customer through DMA Direct, or the Stock Exchange routing net-
works may be accessed through DMA Network to connect their local and foreign customers.
04 OUR PRODUCTS AND SERVICES
Connection service that consists of leasing
space in Santiago s Stock Exchange data pro-
cessing center, adjacent to its trading engine,
to host servers or customer communication
equipment. This priviledged location enhanc-
es the speed of order processing and delivers
high standards of trust and security.
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This service is focused on brokerage houses, securities agents and asset management companies
and delivers a suite of technological solutions to support the integrated and efficient operation of
financial, operational and commercial management.
These solutions come with full technological support and contain tools specifically designed for the
Chilean market that are adapted to its constant growt