Santiago Stock Exchange

Equities trading reinvented, giving customers direct access to multiple markets and ultra-fast trading

Published on 25-Nov-2013

"With the new trading system in place, we can attract greater liquidity to our region from around the world, offering a more diversified market to our customers and stimulating economic growth in Latin America." - Andres Falcone, CIO, Santiago Stock Exchange

Customer:
Santiago Stock Exchange

Industry:
Financial Markets

Deployment country:
Chile

Solution:
Business Integration, Business Performance Transformation, Business Process Management (BPM), Enabling Business Flexibility, Industry Framework , Information Management Foundation, Smarter Planet, Web Services, Workload Management

Overview

Santiago Stock Exchange is Chile’s main stock exchange. It trades in stocks, bonds, investment funds, stock options, futures, and gold and silver coins minted by the Banco Central de Chile and US dollars on Telepregon, its electronic platform.

Business need:
The exchange needed a solution that would ensure manage high-transaction volumes at competitive speed while helping to meet regulatory compliance as its customer base expanded and trading volumes increased.

Solution:
The exchange can respond to peak workloads of more than 30,000 messages per second, completing each in unprecedented speed. To match the new high-speed, high-transactiona environment, it integrated a surveillance and trading monitoring system that does all the detection work of analyzing current and past transactions and market information, learning and adapting to identify new fraudulent schemes and activities and initiating enforcement actions, all in a matter of seconds instead of weeks.

Benefits:
Improves system uptime by 1 percent to establish near 100 percent availability, improving customer service

Case Study

Santiago Stock Exchange is Chile’s main stock exchange. It trades in stocks, bonds, investment funds, stock options, futures, and gold and silver coins minted by the Banco Central de Chile and US dollars on Telepregon, its electronic platform. The company opened its market to other exchanges to attract greater liquidity to Chile and other Latin American countries. It formed two strategic alliances: a relationship with the Brazilian Securities, Commodities and Futures Exchange, and in

2011 it formed the Integrated Latin American Market (MILA) with the stock exchanges in Peru and Columbia.

The Opportunity
The Santiago Stock Exchange in Latin America wanted to become a market leader in the region. To bring more liquidity to its market, the exchange formed alliances with other Latin American exchanges, enabling cross-exchange trading for the first time in the country’s history. As a result, the exchange needed to integrate and deliver local and regional price information and market data to its customers. Additionally, it needed to migrate from batch to real-time order-matching processes to meet its customers’ needs for algorithmic trading. The exchange needed a solution that would ensure manage high-transaction volumes at competitive speed while helping to meet regulatory compliance as its customer base expanded and trading volumes increased.

What Makes It Smarter
In a stock exchange environment, a microsecond difference in transaction time can mean millions gained or lost, and a dramatic increase in volume within an exchange can lead to an increase in fraudulent activities. To tackle these challenges, the Santiago Stock Exchange implemented a real-time trade-matching system with intelligent surveillance. The high-throughput, low-latency solution enables processing of all orders to achieve throughput from tens of thousands to hundreds of thousands of transactions per second, with response times measured in microseconds and without performance bottlenecks. The exchange can respond to peak workloads of more than 30,000 messages per second, completing each in unprecedented speed. To match the new high-speed, high-transactional environment, it integrated a surveillance and trading monitoring system that does all the detection work of analyzing current and past transactions and market information, learning and adapting to identify new fraudulent schemes and activities and initiating enforcement actions, all in a matter of seconds instead of weeks. Additionally, the solution enabled the exchange to integrate and deliver local, regional and global market data to its traders.

Real Business Results
• Improves system uptime by 1 percent to establish near 100 percent availability, improving customer service
• Increases transaction capacity by 9000 percent, up to 3,000 orders processed per second, through high-speed, reliable multicast message transport
• Reduces round-trip order execution by more than 99 percent, from three milliseconds to one millisecond

For more information
Please contact your IBM representative or IBM Business Partner. Visit us at ibm.com/websphere.

To learn more about Santiago Stock Exchange, visit
www.bolsadesantiago.com.

Products and services used

IBM products and services that were used in this case study.

Hardware:
BladeCenter, System x

Software:
WebSphere Front Office for Financial Markets, WebSphere Business Events, WebSphere Message Broker for Multiplatforms, WebSphere Application Server Standard Edition, IBM solidDB

Service:
GTS Integrated Technology Services

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY 10589 Produced in the United States of America October 2013 IBM, the IBM logo, ibm.com, solidDB, WerbSphere, BladeCenter and System x are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The performance data discussed herein is presented as derived under specific operating conditions. Actual results may vary. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.