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Santiago Stock ExchangePlanning & Development Department

The Chilean Stock Market

Facts: Chile

• Population (2007 est.): 16,598,074  • Literacy: total population: 95.7%

• Economic Summary: (2007 est.)GDP/PPP: US$ 209.852 billion 

Per capita US$ 14,400 • Exports: $66.43 billion f.o.b. (2007 est.) • Imports: $41.8 billion f.o.b. (2007 est.)

Market Structure

IssuersCentral BankBanks and Financial InstitutionsCompanies

Institutional InvestorsPension FundsMutual FundsInvestment FundsInsurance Companies

Foreign Investors

Individual Investors

S.V.S. Securities, ExchangesCentral Bank Monetary PolicyS.A.F.P. Pension FundsS.B.I.F. Banks, Financial Inst.

IntermediariesBrokersIndependent AgentsBanks and Financial Institutions

Stock Exchanges

Stock Exchanges

• Bolsa de Valores de Valparaíso (est.1892)

• Bolsa de Comercio de Santiago (est.1893)

• Bolsa Electrónica de Chile (est.1989)

Equity Market (2007)

BE14,4%

BV0,4%BCS

85,2%

Fixed Income Market (2007)

BCS99,9%

BE0,2%

Market Indicators

Daily Amounts Traded On Floor (daily average, in millions of USD, 2007)

Equity Market

Debt Market

Money Market

196.4 million USD234.9 million USD

413.0 million USD

Markets

Daily Amounts Traded On Floor

(daily average, in millions of USD, 2007)

Daily Amounts Traded OTC

(daily average, in millions of USD, 2007)

Equities 196.4 0.0

Repos on Equities 31.5 0.0

Investment Funds 4.0 0.0

Bonds 234.9 337.4

Money Market 413.0 649.9

Forex 0.0 391.5

Futures 0.0 0.0

Total (USD 2.26 bn) 879.8 1,378.8

The Santiago Stock Exchange

• Private company established in 1893. Currently, there are 48 shareholders and 32 brokers.

• Listed Company• Board of Directors: 11 members. • Member of the World Federation of Exchanges

(WFE, 1991) and the Iberoamerican Federation of Exchanges (FIABV, 1973).

• Self-Regulation role to oversee market operations.

Brokerage Houses

Of the 32 Brokerage Houses:

• 21 traditional independent brokerage houses• 11 institutional brokers owned by banks or other financial

institutions

Traded Instruments

• Stocks (244 listed stocks)• Investment Fund Quotas (CFI)• Currency (Gold, Silver and USD)• Fixed Income Instruments (IRF)• Money Market Instruments (IIF)• Derivatives: Futures, Options (without activity)

Traded Amounts 1983-2007 (MMUS$)

0,00

10.000,00

20.000,00

30.000,00

40.000,00

50.000,00

Años

Mo

nto

s

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Equity: Traded Amounts

1985:Pension Funds are authorized to invest in the Equity Market

1990:CTC First Chilean CO. To issue ADR´s in NYSE

1994: Pension Funds areAuthorized to invest abroad

2000: Off Shore Market iscreated. Endesa-España

2001:Tax of foreign capital isremoved

2002TLC: Trade agreements: Korea, EU, USA

2004:Long term debt classification A1999:

Short Sale operations and shares Lending intro

2007: IPSA Index reaches his maximum: 3.499,5 points

Equity: Market Capitalization

Market Capitalization (MM US$)

89.53379.001 84.115

62.437

89.87282.428 84.713

75.847

112.264

139.075 144.080

186.831

213.364

0

50.000

100.000

150.000

200.000

250.000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Equity Indexes: IPSA

IPSA Index (2002/12/31 = 1000)

0,0

500,0

1.000,0

1.500,0

2.000,0

2.500,0

3.000,0

3.500,0

4.000,0

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

Equity Indexes

• IPSA (selective index, top 40 companies)• IGPA (general index)• INTER-10 (index for companies with foreign listings)

• SECTORIAL INDEXES:BankingCommoditiesTechnology&CommunicationsConstruction&Real-StateConsumer GoodsIndustrialRetailUtilities

• 2008:IGPA Small CapIGPA Mid CapIGPA Large Cap

7.92% Electricity

6.60% Transportation

6.08% Retail

4.95% Electricity

4.70% Commodities

4.22% Retail

3.49% Retail

3.38% Technology

3.01% Electricity

2.96% Retail

Most traded stocks: 2007

Sectorial Indexes

Others 29%

Consumer Goods3%

Tecnology & Comunications

3%

Industrial 7%

Retail 12%

Commodities 16%

Utilities 19%

Banking 11%

Constant Evolution

1917

1995

2008

Trading Systems

• Equity Market– Telepregón (order book system)– Electronic Auction for Stocks– Trading Floor/ On-Floor Auction (Stocks, Currency

and CFI)

• Debt Market– Telerenta (order book system)– Electronic Auction for Fixed Income and Money

Markets– Dutch Auction (for New Issues Placement)

Service Integration at the Santiago Stock Exchange

• Aiming at integrating products and services throughout the financial services chain, on different markets.

OrderRouting

ElectronicTrading

MarketInformation

Clearing &Settlement

BackOffice

Equity

DebtMarkets

OTCMarkets

Derivatives

Existing To be implemented in the future

www.bolsadesantiago.com