Chilean broker imports UK trading technology
Chilean broker Banchile, part of Santiago-based Banco de Chile, has deployed a brokerage platform from UK systems supplier Fidessa that will link it to international trading venues.
The company operates both as a broker and as an asset manager, through its Banchile Corredores de Bolsa and Banchile Administradora General de Fondos businesses respectively, and has approximately $9.5 billion assets under management.
The technology Banchile is buying from Fidessa consists of a brokerage trading platform including an order management system and algorithmic and basket trading tools. It also includes connectivity to Fidessa’s global network, which will give the broker access to 3,200 buy-side firms and 180 trading venues around the world.
Together with other Latin American markets, Chile has been keen to attract attention from international investors in recent years. The country’s stock exchange, based in Santiago, is member of MILA – Mercado Integrado Latino Americado – a regional project between the exchanges of Chile, Colombia and Peru that aims to increase liquidity by banding together and sharing order routing, access and membership between each other’s markets.
MILA has been seen as a tool to attract attention to Latin America’s smaller markets, which have been overshadowed by the enormous success of Brazil in recent years. Last year, Banchile’s brokerage claims it almost doubled the amount of volume it carried on behalf of foreign institutional investors trading in Chile – suggesting that the scheme may be finding some degree of success.
“We are seeing a lot of activity in the Andean region with firms replacing legacy vendor and proprietary systems and investing in customisable, high-throughput, low-latency trading solutions to enable high-quality execution, greater operating efficiency and a solid basis for growth,” said Alice Botis, head of business development for Fidessa in Latin America.
Earlier this month, the Lima stock exchange in neighbouring Peru agreed to buy trading technology from the London Stock Exchange, including smart order routing tools.