CHILE: Santiago Stock Exchange Receives Approval for Derivatives Market

Monday April 13 2015

The Chilean Securities and Insurance Supervisor approved on Thursday April 9, the General Regulation of Santiago Stock Exchange Futures Market. Following the adoption of the corresponding regulation, Santiago Stock Exchange is ready to launch the derivatives market in the upcoming weeks.

The Derivatives Market is a joint initiative between Santiago Stock Exchange and CCLV Central Counterparty S.A., in a strategic alliance with BM&FBovespa. Its objective is to provide the domestic capital market with an institutional regulatory framework and with a financial and technological infrastructure for trading, clearing and settlement of derivatives, through the stock market.

In a first stage of operations, Santiago Stock Exchange Derivatives Market, will contemplate the trading of IPSA futures contracts and Dollars Futures, to continue in a second phase with the launch of Fixed Income Futures.

In terms of operations, the financial system in general –intermediaries, banks, institutional, individual, local and foreign investors- will be able to trade instruments from the futures markets through the Telepregón HT system, electronic platform where its trading will be promoted, along with the rest of the fixed income instruments and MILA –Integrated Latin American Market-.

Santiago Stock Exchange will define the products and characteristics of futures contracts that will be listed in this market, offering the required infrastructure for the trading futures contracts. Meanwhile, CCLV Central Counterparty will constitute creditor and debtor of the obligations arising in each futures contract, assuming all the counterparty risk involved, ensuring compliance with those obligations.

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