Chile and Bolsa de Commercio de Santiago

Erin BondThomas HareDenae BrownBen Zaczak

History• Bolsa de Commercio de Santiago was founded in 1893

– 329 Incorporated Businesses at that time (majority were in mining)

– Gave vitality and dynamism to the national economy

• Depression in the 1930’s heavily affected the economy and stock market of Chile

• Economy recovers somewhat due to WWII• Deterioration of the stock market continued until the

1970’s with military and economic reform– Hyperinflation - rate rises to 400%– Coup - Allende’s fall

History

• Chicago Boys try to revitalize the Economy• Debt Crisis of early 1980’s

– 20% Unemployment rate– Many of the largest corporations privatized

• Peaceful return to Democracy– Government leaves economic control– Free trade– Economy succeeds - import/export

Global/National Environment• Growth of this company depends a

great deal on the current state of the economy

• In the past, government intervention constrained free enterprise

• 1990s Chilean companies were open to international markets

• In 1981, the use of modern technologies– First time it computerized its main processes– Currently has a network of over 100 terminals – Has access to a large number of services

through the internet• Challenges for the future

– Integrate the Santiago Stock Exchange with international markets

– Incorporate new technologies– Motivate the participation of new investors

Products and Services• Terminals

– Consulting terminal– Executive terminal of fixed income– Executive terminal of variable income

• Information Services– Fecus Plus– FonoBolsa– Info Mail– Stock View

Products and Services• Vendors

– Bolsaticker– Internet Ticker

• Publications– Annual Reports– Daily Bulletins– Monthly Reports– Quarterly Newsletter of Analysis and

Financial Records

Products and Services• Historical Prices• Historical Summary of Transactions of

Fixed Income Instruments• Historical Summary of Transactions of

Stocks• IRF Tables• Metastock

Engineering Principles• 1981 Stock exchange adapted the

use of computers• Over 100 terminals networked

– One of the largest financial service networks in Chile

• Various services available for investors

Information Services• Stockview

– Online service that provides real time information about the current market

• InfoMail– Email service that sends daily reports to investors.

Info includes:• Summary of traded stocks• Market summary• Price indexes• Closing prices• Essential facts• Corporate actions• Financial parameters

Information Services• Fecus Plus

– Computer application designed by the stock exchange to collect information from corporations on a quarterly basis

• Fono Bolsa– Computerized telephone information system

that provides current Chilean stock information from anywhere in the world

– Option to create personal stock profiles

Engineering Aspects• Technicians/Engineers maintain

databases and computer networks• Must have knowledge of

technology– Not necessarily an engineer

Bolso de Commercio de Santiago• Stock markets are one of the

greatest indicators of the national economy and the country’s role in the global marketplace

• Its important for them to stay current with technologies to keep competitive with the global marketplace