Chile's Ministry of Finance is actively working to modernize its $82 billion public debt market through the introduction of a Market Makers Program. This initiative, designed to enhance liquidity, depth, and transparency, aims to establish clearer and more representative reference points for sovereign debt denominated in pesos and Unidades de Fomento (UF). The program is expected to improve the pricing of public debt and other fixed-income instruments, contributing to a more efficient capital market.
The Market Makers Program, whose design was published on August 27, 2026, invites financial institutions to voluntarily participate as Market Makers. These institutions will commit to regularly offering firm bid-ask prices for Treasury bonds and participating in placement processes. Key components include a platform for Market Makers to quote and trade, open systems for operations with investors, and a new information architecture to provide more frequent reference points and consolidated transaction records. The program also seeks to promote the repo market by facilitating these operations among Market Makers.
Eugenio Symon, Coordinator of Capital Markets, Finance, and International Affairs at the Ministry of Finance, emphasized that a deeper public debt market with better price references allows the state to finance itself on more favorable terms and strengthens capital market functioning. This initiative is part of a broader agenda to deepen Chile's capital market, diversify its investor base, and increase international integration. The public comment period for the program design will close on September 23, 2026, with a six-month pilot phase planned before full implementation. This modernization effort comes as foreign investors are already showing record interest in Chile's local government debt, attracted by factors such as a weaker peso, anticipated interest rate cuts, and a more market-friendly government.
