Citi Securities Services Evolution 2025

Securities Services Evolution 2025 | 37 Latin America T+1: near and far The T+1 journey continues to be highly resource- intensive for respondents in Latin America, making it the most impactful market dynamic in 2025 for 47% of respondents in the region. With 76% of respondents across Latin America still running projects to accommodate last year’s transitions to T+1 (the highest of any region globally), the impact of cross- and dual-listed securities on Latin American markets has been strong. And now, following Mexico and Argentina’s moves to T+1 in May 2024, Brazil, Chile, Peru and Colombia are starting their own T+1 journeys. Brazil is targeting a February 2028 transition to T+1 settlement, 47 with public consultations and regulatory amendments from the Brazilian Securities and Exchange Commission (CVM) and the Central Bank of Brazil (BCB) starting in late 2025 and continuing into 2026. Given the unique structure of Brazil’s markets for foreign investors, this transition is set to be a major point of focus for the coming months – as onshore institutions drive both education and preparation of their own processes. Equally, nuam 48 has confirmed that equity markets in Chile, Peru, and Colombia will transition to T+1 settlement in the second half of 2027, a revised target from an earlier date. This timeline allows regulators (Chile’s CMF, Colombia’s SFC, and Peru’s SMV) ample time to harmonize regulatory frameworks for cross-border T+1, focusing on critical areas such as pre-matching, failed trades, and liquidity management across diverse jurisdictions and currencies. Platform changes: a wave of market transformation The transition to T+1 in Brazil comes at a time of significant transformation in core FMI platforms. B3’s clearingmodernization project is crucial, aiming for a December 2027 transition to amicroservices architecture. This newplatformwill enable 21-hour, five-day-a-week operations, significantly extending trading hours to support global T+1 cycles across various time zones. Given the role of B3 in providing centralized confirmation and allocationmatching to themarket (similar toDTCC’s CTM), this global connectivity is an essential requirement for T+1. Meanwhile, on the horizon, theMexican CSD BMVwill also be refreshing its entire post-trade platform (workingwithNasdaq 49 ), andworkwill continue in Argentina and Chile’s (among others) to drive new levels of automation from their newly refreshed post-trade infrastructures. Despite the heavy change-management load that these transitions are creating, thewave of new technology across the region is creating newopportunities for standardization across all parts of the trade cycle. Andwith nuam 50 gainingmomentum further in 2025 (reporting a 13% revenue growth and a 17% increase in Average Daily Trading Volumes toUSD$9.6 Bn in 2024), the regionalization of Latin American trade processing appears to be getting closer. Digital assets: the next step for FMIs The adoption of digital assets in Latin America has seen a significant increase in industry focus in 2025 (seen as the highest impact trend by 20% of respondents, up from 3% last year), following the live implementation of several initiatives that we highlighted in our 2024 report. In Chile, DCV ismaking significant strides in its digital transformationwith their newdigital platform nowhandling issuance and settlement of digital securities, amajor step towards amore digitized capital market (now that a legal framework for digital assets has been established). Brazil’s “PilotoDrex” 51 Accelerated settlements Settlement efficiency Replacement of FMI legacy technology platforms Adoption of Generative AI* Adoption of digital assets Increased shareholder participation and governance Automation of asset servicing Mandatory fixed income clearing Resiliency Figure 20: Most significant changes in the Latin American post-trade space today Expressed as: % of respondents in Latin America citing each change, excluding others. *New category in 2025. 10% 25% 47% 15% 3% 25% 23% 14% 2% 8% 3% 10% 8% 6% 5% 15% 8% 3% 5% 2% 3% 2023 2024 2025