What Is the Santiago Stock Exchange (SSE)?

The term Santiago Stock Exchange (SSE) refers to the premier stock exchange of Chile. Located in Santiago, the SSE trades more than $2 billion each day in stocks, bonds, investment funds, derivatives, along with gold and silver Chilean coins. Its goal is to provide the nation with growth in the securities market in order to help boost the country's development. Founded in 1893, it is one of the largest stock exchanges in Latin America. The exchange is part of the World Federation of Stock Exchanges.

Key Takeaways

  • The Santiago Stock Exchange is the premier stock exchange of Chile.
  • The SSE trades stocks, bonds, investment funds, derivatives, along with gold and silver Chilean coins.
  • The General Stock Price Index, the Selective Stock Price Index, and the Inter-10 Index are published indexes that attempt to mirror the SSE's performance.

Understanding the Santiago Stock Exchange (SSE)

Founded in 1893, the Santiago Stock Exchange is one of two exchanges that trade in the country along with the Chilean Electronic Stock Exchange (Bolsa Electronica de Chile). A third exchange, the Valparaiso Stock Exchange (Bolsa de Valores de Valparaiso), was shut down in 2018. The SSE's stated mission is to provide exemplary service for the growth of Chile’s securities market.

The exchange holds itself to the following pillars:

  • Excellent service
  • Innovation
  • Transparency
  • Sustainability

The Santiago Stock Exchange aims to provide its customers with trust, efficiency, and security.

The SSE, which is also called Bolsa de Comercio de Santiago, runs between 9:30 a.m. to 4:00 p.m. local time. The Santiago Stock Exchange has several markets that trade in equities, money market instruments, fixed-income securities, exchange-traded funds (ETFs), derivatives, and foreign securities. Some of the companies that trade on the SSE include Chilectra, Sintex, and Axxion. The exchange also has an electronic trading platform called Telepregon. Roughly $2 billion worth of trades are executed on a daily basis on the exchange.

There are three indexes published that attempt to mirror the SSE's performance. The first one is called the General Stock Price Index, or Indice General de Precios de Acciones (IGPA). This is a market capitalization-weighted index. The Selective Stock Price Index, which is also called Indice de Precios Selectivo de Acciones (IPSA), is made up of the exchange's 40 most-traded stocks. The final index is the Inter-10 Index consists of 10 major national stocks listed through American Depository Receipts (ADRs) on foreign markets.

As part of the U.N. Sustainable Stock Exchanges Initiative, the Santiago Stock Exchange is among the international exchanges that promote sustainable development.

History of the Santiago Stock Exchange (SSE)

As noted above, the exchange was founded in 1893. Construction on the building where the exchange is located began in 1913. The Santiago Stock Exchange became a member of both the Iberoamerican Federation of Exchanges as of 1973 and the World Federation of Stock Exchanges in 1991. The SSE was voted the Best Stock Exchange in Latin America by financial magazine Euromoney in 2014.

Here are a few other milestones for the exchange:

  • 1977: The Selective Stock Price Index (IPSA) is created.
  • 1988 to 1989: The Telepregon system launches electronic trading of stocks and debt instruments.
  • 1990: Chilean companies start trading in international markets.
  • 2000: The exchange initiates the foreign market for the listing and trading of foreign securities.
  • 2012: The exchange concludes the bidding process for the IPSA, IGPA, and INTER-10 indices, which creates ETFs in Chile.