Financial Market

TECH TUESDAY: CVSA Market Modernization in Focus

TECH TUESDAY is a weekly content series covering all aspects of capital markets technology. TECH TUESDAY is produced in collaboration with Nasdaq.

Caja de Valores S.A. (CVSA), Argentina’s Central Securities Depository, has modernized its technological infrastructure via a partnership with Nasdaq.

The CSD, which offers capital market participants deposit accounts, custody, registration, settlement and clearance services, recently launched a new platform using Nasdaq technology.  

The upgrade substantially increases the resilience, capacity, and speed of the CSD, which is now capable of processing more than 1,000 trade settlements per second, more than 300 times faster than the previous system. 

The platform’s scalable architecture provides the capacity to process larger trading volumes and intensify speed and agility with respect to products and messaging services. That throughput enables more investors to access capital markets, which in turn helps a securities exchange facilitate capital formation and economic growth.  

For CVSA, which is owned by Argentina’s Buenos Aires Stock Exchange (BYMA), the new platform supplants legacy technology infrastructure that had been strained and effectively operating at full capacity during periods of heavy trading volume. The core platform went live in September 2023, and more asset classes and additional functionality were incorporated ahead of its formal launch earlier this month.

In a 2023 article, Citi Securities Services noted that Financial Market Infrastructures (FMIs) in Latin America are adapting to evolving markets by providing investors easier access to more asset classes, and by improving their own operational processes via technologies that offer greater scalability and resilience.  

The Citi article also stated that LatAm FMIs are increasingly partnering with financial technology providers for innovation initiatives, in order to achieve cost efficiencies and a faster time to market. This theme was also cited in an earlier Deloitte report about the future of global securities exchanges, which cited legacy operational inefficiencies and technology debt as drivers of digital transformation.  

Caja de Valores recently recorded daily average transactions of 700,000, with peaks of 865,000, CVSA and Nasdaq said on Jan. 11. This represents an increase of 49% of the monthly average compared to the period prior to the launch of the new system.

More broadly, CVSA executives have said the group’s purpose is to turn investment into work and development, and this entails providing Argentine society access to capital markets. Increasing market participation underscores the need for technological infrastructure that can support higher trading volumes.

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