BME Helps Bolivia's BBV to Move Away From Outcry Pits Toward Electronic Trading

Prior to the launch of Smart BBV, an electronic trading platform, Bolivia's trading was done in open outcry pits. The platform is built on BME's Sibe-Smart matching engine. It has a common base as those built for other markets, and allows for the execution of fixed income, equities and derivatives trades based on the European market model, a spokesperson for BME tells WatersTechnology.

"In order to meet customer needs, the platform is adapted to respond to the reality of the different markets in which it is implemented," says the spokesperson.

The Next Stage
Smart BBV took "several months" to develop. The implementation of the platform is being carried out in stages, the first, which started in August, allows investors to buy and sell standardized fixed-income securities through the platform. The second stage, which will take place in 2017, will include the implementation of the primary market and trading in other non-standardized securities and repo trades, according to the spokesperson.

While the platform supports both equities and fixed-income instruments, it will also feature a currency segment in order to meet the Bolivian marketplace's specific demands. As it is fully rolled out, it will allow for the automation of all market transactions currently carried out in the trading pits, noted Javier Aneiva, BBV's general manager, in a statement.

"The pits and the outcry trading that have defined trading at the BBV will become history, giving way to electronic automated transactions that do not require the physical presence of intermediaries in the stock market, as a virtual network is established in which traders can remotely place their ask and bid orders and close their trades from their own facilities ─ in La Paz or in any city of the country ─ via their computers."

The pits and the outcry trading that have defined trading at the BBV will become history. ─ Javier Aneiva

BME's spokesperson said the exchange is "studying new projects" but as of yet, nothing has been finalized. "BME is always open to cooperation with all Latin American markets and is pursuing other technological projects," the spokesperson says.