CHILE: Santiago Stock Exchange Amends its Equity Trading Regulation

Thursday January 18 2018

On 8^th January 2018, the Santiago Stock Exchange announced that it would amend its Equity Trading Regulations. The modifications aim to incorporate international standards in exchange trading and to increase transparency, competition and liquidity in the transaction of stocks and fund quotas, thus improving the price discovery process and the depth of the Chilean equities market. These Amendments will become effective on the 29th January 2018.

The changes will:

• enable matching of compatible buy and sell orders entered through the same Brokerage House;
• extend the order dissemination period and redefine limits on the amount and number of shares for electronic auctions and closing of the order book;
• create a mechanism to automatically suspend when predefined price limits are exceeded and resume through volatility auction is added;
• establish a new mechanism for trading low liquidity securities.

Furthermore a second stage of amendments will be introduced in April. These amendments will establish :

• a new mechanisms which will determine the closing price of a share or fund share, including a closing auction
• a mechanism that will handle transactions at closing price during the closing auction.

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