By Financial News Desk
Special reporting inspired by Asobolsa insights
Main Facts
The integration of the capital markets of Colombia, Chile, and Peru through the regional holding Nuam has officially entered a decisive operational phase. Having successfully homologated the primary trading platforms across the three jurisdictions, the initiative is shifting its focus toward the complex mechanics of post-trade processing, risk management systems, and regulatory harmonization.
According to Andrés Restrepo, Chief Executive Officer of the Bolsa de Valores de Colombia (BVC), the overarching objective transcends mere technological compatibility. The ultimate goal is to foster a deeply interconnected, highly liquid, and vibrant regional marketplace by 2027.
At present, market participants in all three nations operate using a unified matching engine, standardized trading screens, and an estimated 95% alignment in operational rules. However, closing the loop requires profound structural transformations in how trades are cleared, settled, and regulated. Unlike previous regional experiments—such as the historic, yet structurally constrained Latin American Integrated Market (MILA)—Nuam is building an end-to-end framework that integrates trading, post-trade operations, and risk management simultaneously.
Key structural elements of the ongoing integration include:
- Unified Trading Infrastructure: A shared technological backbone across Bogotá, Santiago, and Lima.
- Interconnected Risk Chambers: A networked model where local central clearinghouses act as members of foreign chambers, simplifying cross-border settlement for local investors.
- Enhanced Liquidity Tools: Introduction of new financial mechanisms such as Over-The-Counter (OTC) securities lending, open repo structures, and designated market makers.
- Currency Flexibility: Expanded capabilities allowing transactions and settlements in both local currencies and U.S. dollars, tailored to investor risk profiles.
Chronology of Integration: From MILA’s Lessons to Nuam’s 2027 Horizon
The journey toward a unified Andean market has evolved over more than a decade, marked by strategic pivots, regulatory hurdles, and technological upgrades.
The MILA Era (2011–2020): The Foundation of Regional Vision
The creation of the Latin American Integrated Market (MILA) in 2011 represented a pioneering milestone, connecting the stock exchanges of Colombia, Chile, and Peru (and later Mexico). While MILA successfully linked the trading front-ends of the participating nations, it suffered from a fundamental structural flaw: it left post-trade processes, custody, clearing, and settlement largely fragmented. Investors attempting cross-border transactions frequently encountered high frictional costs, prolonged settlement cycles, and administrative bottlenecks. MILA demonstrated that unified screens alone could not generate deep liquidity.
The Birth of Nuam and Technological Homologation (2021–2024)
Recognizing the limitations of MILA, financial authorities and exchange leaders initiated plans to merge infrastructure holdings, culminating in the establishment of Nuam. Over the past year and a half, intensive technological alignment took place. The three nations successfully integrated their trading platforms, culminating in the adoption of a shared matching engine and standardized operational rules. Simultaneously, Peru integrated its fixed-income market onto the Chilean platform, laying vital groundwork for cross-border asset mobility.
The Post-Trade Milestone and 2027 Horizon (2025–2027)
The current phase centers on the integration of the post-trade ecosystem.
- Late 2025: Nuam aims to roll out the unified post-trade segment for Colombia.
- Early 2027: The post-trade integration is slated to incorporate Chile.
- Parallel Peruvian Development: Because Peru historically lacked a traditional central risk chamber, ongoing efforts focus on establishing the necessary legal frameworks and institutional entities to bring Peru into the interconnected clearing network.
- Full Variable Income Integration: The complete consolidation of the equity (variable income) markets across all three countries is scheduled for completion by 2027.
Supporting Data: Infrastructure, Liquidity, and Asset Mobility
To evaluate the true scope of Nuam’s transformation, financial analysts look closely at the quantitative and structural differences between legacy systems and the proposed 2027 architecture.
The Clearinghouse (CCP) Architecture
Rather than centralizing all clearing operations into a single, monolithic regional entity—which would introduce massive legal and jurisdictional complexities—Nuam has opted for a networked architecture.
- Three Local Chambers Maintained: Colombia, Chile, and Peru will each retain their respective central risk chambers.
- Cross-Membership Model: Each national chamber will formally register as a member of the chambers in the other two countries.
- Local Neteo, Global Reach: Domestic investors will interact exclusively with their home chamber. The local chamber will then manage the complexities of cross-border netting and settlement with its foreign counterparties. This isolates local retail and institutional investors from international administrative friction.
Introduction of Advanced Liquidity Mechanisms
Historically, the Colombian capital market—and to varying degrees, those of its Andean neighbors—lacked sophisticated instruments for portfolio optimization. To remedy this, Nuam is introducing structural financial mechanisms that have long been standard in developed markets:
- OTC Securities Lending: Enabling institutional investors to temporarily transfer securities for a fee, enhancing market depth and facilitating short-selling strategies.
- Open Repos (Repo Abierto): Providing flexible, short-term liquidity management tools backed by collateral.
- Designated Market Makers (Formadores de Liquidez): Institutions contractually obligated to provide continuous buy and sell quotes, thereby narrowing bid-ask spreads and mitigating volatility.
According to BVC leadership, introducing these instruments is non-negotiable. Without tools for active portfolio, liquidity, and risk management, even the most advanced trading technology will fail to generate organic market depth.
Official Responses and Stakeholder Perspectives
The realization of a unified Andean market requires seamless coordination between exchange operators, regulatory bodies, and industry associations. Key leaders have offered critical insights into the remaining hurdles and strategic imperatives.
Andrés Restrepo, CEO of the Bolsa de Valores de Colombia (BVC)
Restrepo has consistently emphasized that technology is merely the vehicle, not the destination.
"Today we have the same matching engine, the same trading screen, and I would say 95% of the same operating rules functioning across the three markets," Restrepo noted.
However, he issued a cautionary note regarding infrastructure versus utility:
"The issue of technology is very important, but it is only a part. If we do not give market participants the elements for the management of their portfolios, liquidity, and risks, we can have excellent technology, but we will not achieve the objective… The goal is not to have a common platform, but a truly vibrant integrated market."
Regarding fixed income, Restrepo noted that while Peru’s fixed-income sector now operates on Chile’s platform, fully integrating regional debt instruments remains a lower priority due to structural differences in local debt issuance and yield curves across the three nations.
Shenny González, President of Asobolsa
Addressing the legal and regulatory dimensions of the integration, Shenny González highlighted the asymmetries that still require legislative attention. While cross-border legal frameworks have progressed, operational friction remains.
"Colombians already have the legal authorization to connect directly to the Chilean market, but there are ongoing discussions regarding foreign exchange (FX) regulations with local impact," González explained.
Specifically, Colombian regulations must explicitly permit domestic broker-dealers to execute and settle securities transactions directly in U.S. dollars to fully unlock the potential of multi-currency regional trading.
Implications: What Nuam 2027 Means for Investors and the Regional Economy
The culmination of the Nuam integration project by 2027 carries profound implications for retail investors, institutional funds, macroeconomic stability, and the global positioning of the Andean region.
1. Instantaneous Diversification for Investors
For an individual investor sitting in Bogotá, Lima, or Santiago, the geographical boundaries of their local stock exchange will effectively vanish. Instead of being restricted to a handful of domestic issuers—many of which are concentrated in traditional sectors like banking, energy, and commodities—investors will gain frictionless access to a broad cross-section of Latin American corporate and public assets.
"It will multiply the number of alternatives instantaneously," Restrepo stated.
2. Tailored Currency Exposure and Foreign Exchange Flexibility
A major breakthrough of the Nuam architecture is the integration of multi-currency clearing and settlement. Investors will no longer be forced to assume unwanted foreign exchange risks simply by purchasing cross-border assets.
- USD-Denominated Inflows: Investors who earn income in U.S. dollars or wish to hedge against local currency devaluation can acquire and settle assets denominated in hard currency.
- Local Currency Preference: Those operating purely within domestic peso or sol economies can maintain local currency exposure while still capturing foreign corporate growth.
This flexibility is expected to attract international institutional funds that previously avoided Andean equities due to currency hedging complexities and illiquidity concerns.
3. Upgraded Back-Office and Operational Ecosystem
Beyond trading screens and clearinghouses, the integration mandates a complete overhaul of back-office infrastructure across brokerage houses (Sociedades Comisionistas). Implementing standardized messaging, risk protocols, and back-office software ensures that administrative errors are minimized, operational resilience is maximized, and compliance with international auditing standards is maintained.
4. Overcoming the Ghost of MILA
By addressing post-trade friction, risk management synchronization, and regulatory alignment concurrently, Nuam aims to avoid the pitfalls that stalled MILA. If successful by 2027, Colombia, Chile, and Peru will no longer present three fragmented, relatively shallow capital pools to the world. Instead, they will present a consolidated economic bloc capable of competing globally for capital, driving corporate growth, and offering retail and institutional investors a modern, resilient, and deeply liquid financial ecosystem.
