TECH TUESDAY is a weekly content series covering all aspects of capital markets technology. TECH TUESDAY is produced in collaboration with Nasdaq.
Last week, Bolsa Electrónica de Chile (BEC) announced an agreement with Nasdaq through which they will upgrade their trading technology to Nasdaq’s SaaS-based Marketplace Services Platform, with the aim to move its operations to the cloud by the end of 2024. We met with Juan Carlos Spencer, CEO of Bolsa Electrónica de Chile, to learn more about the project.
You announced a new technology deal with Nasdaq, please tell us about the partnership from your perspective.
We are very pleased with this agreement. Nasdaq has been a great partner for Bolsa Electrónica de Chile for some time; the platform that we operate on is based on their technology and it has allowed us to be at the forefront in this matter during the last decade. Today, we are starting a new journey together with Nasdaq, which we are very excited about. This technology upgrade will culminate at the end of 2024, when we complete the cloud migration.
What are some of the key business drivers for why you will move from on-premise to SaaS technology?
Bolsa Electrónica de Chile has innovation in its DNA. It is our responsibility to contribute to the sustainable development of the Chilean capital market and to offer stockbrokers, banks, and state entities the best platform to operate. Our focus is to enable the different actors that participate in the ecosystem to operate in a safe, agile, transparent, and sustainable way. The possibility of operating through the cloud goes in that direction. We are very happy to do it together with our strategic partner Nasdaq and its technology that provides greater resilience and efficiency. Today more than ever, it is necessary to have robust and resilient platforms that facilitate the integration of stock exchanges in our country and with other markets in the world.
As you chart out your cloud journey, what do you hope to unlock for your members?
Moving operations to the cloud is a process that will take almost two years. Between this year and next, we will be focused on this transition, ensuring that the players who trade through our platforms always have the best service, both at this stage and when the integration is fully completed.
What are you most excited about as we get into 2023?
2023 will be a year full of new challenges and opportunities. In the external scenario, the measures that central banks are taking to attack inflation, the rise in energy prices, and the news of the COVID pandemic, especially in China, suggest a difficult year for the world economy. The Chilean economy will be affected by these external factors plus the null or negative growth resulting from the policy of raising local rates to curb inflation, as well as the climate of uncertainty due to the tax reform and the pension reforms. Under this negative scenario, at BEC, we believe there is a space for innovation in new products in our stock market and for promoting a better integration into the international financial market. This is why we have extended our relationship with Nasdaq, which gives us a strategic advantage in our market.