During its first days of operation, the new platform has increased the speed of transactions with substantial benefits to the market. In addition, new services can be accessed, and new technologies can be implemented.
Currently, the Chilean capital market is facing several challenges. And with Depósito Central de Valores (DCV) as a relevant player in the system being responsible for holding securities and recording and settling stock exchange and OTC transactions, among other services, we decided to deploy a state-of-the-art technology base as the central axis of our strategy to accompany the market in its evolution.
In 2018, a partnership was created with Nasdaq, a world-class technology provider, to install a new platform and computer system to provide their services, placing the Chilean market at the forefront of security depositories worldwide.
This great innovation, called "DCV Evolution," completed its installation process in September, taking another step forward to continue moving towards capital market development, facilitating interconnection with international markets and promoting the development with the industry's players of newly added value services.
"It is important to mention that this project involved the active participation of all of our clients, stock exchanges, clearing and settlement houses, the Central Bank of Chile, and other companies of the securities market infrastructure, which was vital for the success of this initiative." In addition, there was an on-going communication with our authorities given the importance and scope of the change," says Guillermo Tagle, President of DCV, who, together with Rodrigo Roblero, the Company's General Manager, comment on the benefits of the new system and the following steps to be taken in the Company.
When did the system go into operation, and which services are available for our clients?
Rodrigo Roblero: The platform went into operation on August 16 for all DCV participants, who were able to log in on August 15 (a bank holiday) to check their balances and test the system out, which reflects the extraordinary commitment of all the parties involved in this complex change process. In this first stage, we focused on moving the current services of DCV to the new platform. Now that that phase has been completed, we will start with a new one that includes improving the quality standard of our services and exploring new growth and business opportunities.
What is the impact of the start-up of this new platform in partnership with Nasdaq in the financial market?
Guillermo Tagle: First, DCV will be able to access new services currently offered in the more developed markets and customize them together with Nasdaq for our market. The second relevant impact is that it will help us face in a better way the changes being experienced in the Chilean market, making it possible, among other things, to help in the challenges that will be given by the new Fintech law that is currently being discussed in the congress. Similarly, it will allow DCV to be more adaptable to include blockchain technology-based services such as facilitating the issuance of digital assets or their tokenization.
Finally, this new platform will allow improving processing capacity and reducing time, which is excellent news for our market.
Which benefits does this bring for the clients that operate in the financial market?
Rodrigo Roblero: During the first days, we experienced a considerable increase in the processing speed of DCV transactions, up to 144 times faster. This means that the processes that used to take place in seconds have been reduced to milliseconds. On the other hand, we have continuously communicated with our clients, proving that the new user experience is more efficient and straightforward, thus facilitating their work. The change has been evaluated positively by the market.
Our team worked hard in this process to ensure that our clients moved into production successfully and for the market to obtain the benefits of having a high-processing capacity, efficient, and resilient platform to face the future challenges of our market.
In the era of cyberattacks, what are the guarantees this platform offers for clients to operate?
Rodrigo Roblero: Cybersecurity does not only play a role in the development of a technology platform; it is also included in the way of managing and handling all the Company's infrastructure resources. Nasdaq technology provides us access to the best practices in this area. However, we are aware of the fact that we must always be looking out for any threats. DCV considers cybersecurity a central aspect of its operation, where we will continue strengthening our protocols to be prepared to face these risks. Nobody is free of cyberattacks, so we are constantly focusing on managing any risks related to that matter.
Do you have any plans after DCV Evolution? Are you planning to participate in new businesses?
Guillermo Tagle: As mentioned, we have taken a significant step for the Company and the market, moving from (in the context of installing a system in a big bang modality) an old technology system to an entirely new world-class system such as the Nasdaq platform. We will continue ensuring the system's proper operation but are already planning the second stage of future development for our Company. In the short term, the Company decided to start a new project called "DCV Digital," which includes in its first phase enabling custody and settlement services for digital assets based on blockchain technology. For this, we are working with some players in the market. We will also start a profound transformation process to improve the shareholders' registers we manage through our DCV Registros S.A. subsidiary.
Rodrigo Roblero: In addition to what our President has mentioned, DCV will continue enabling new services that provide value to the market with the same quality, security, and efficiency standards that characterize us. Our future growth strategy also considers strengthening the cross-border custody service and integrating with other entities to provide our services. It is worth recalling that the Company recently created a new subsidiary called "DCV Asesorías y Servicios" which will allow us to grow in activities that are complementary to our line of business.