Bolsas y Mercados Españoles
Company
search
Home / ABOUT US / SERVICES FOR MEMBERS / Trading on Credit >
Trading on Credit

It is possible, on the Barcelona Stock Exchange, to trade on credit in the following way:

REGULATION AND FUNCTIONING

The credit market for stock exchange spot transactions is regulated by the Government Order of 25 March 1991 and the Government Order of 23 September 1998 and by the regulations of the Barcelona Stock Exchange. It provides a way for financing stock exchange deals, through which buyers and sellers can obtain cash credit and securities loans respectively, without altering the principles of spot transactions.

Contratacion a credito  

LISTED SECURITIES

The securities comprise those that form part of the Íbex-35 index and are listed on the Barcelona Stock Exchange.

 

ENTITIES AUTHORIZED TO GRANT CREDIT

The brokering companies which are authorised to carry on this type of activity, as well as official credit institutions, banks and savings banks, including the Association of Spanish Savings Banks and the Post Office Savings Bank, and the credit cooperatives which are referred to by the letters a) and b) in article 76 of the Law of the Securities Market.

 

CONDITIONS FOR CASH AND SECURITIES LENDING

The entity granting credit is required to inform the Barcelona Stock Exchange Operating Company of the conditions that apply to the credit facilities, including the charge for the cash or securities loan, the guarantees provided and the eventual remuneration. This information will be published in the Quotation Bulletin of the Stock Exchange on the working day prior to the application of the credit facility.

 

SYSTEM OF QUARANTEES

All of the guarantees should be monetary and constituted in cash.

  • Initial guarantees
    The Barcelona Stock Exchange Operating Company has established an initial minimum guarantee of 25% of the effective value of each credit transaction, for both purchases and sales.
  • Complementary guaranteesstrong>
    A complementary guarantee will be requested, from the buyer, when the price of the day is over 10% lower than the last price upon which the guarantee was based and, from the seller, when the price of the day is over 10% higher than the last price upon which the guarantee was constituted. When the price reaches a level at which a complementary guarantee will be required, the previous complementary guarantee will be released.
  • Additional guarantees
    Without prejudice to the above, the entity granting credit may demand additional guarantees.

 

MINIMUM TRADING VOLUME

The minimum effective value for both purchases and sales transactions on credit is 1,200 euros.

 

VOLUNTARY CANCELLATION OF THE CREDIT

At any moment, the principal may request the cancellation of the credit transaction. This cancellation will be accounted for on the same day that the instruction is filed.

 

DEFRALS AND EXTENSIONS

In terms of deferrals, the Barcelona Stock Exchange Operating Company will automatically extend credit transactions, unless a request for total or partial cancellation is lodged by the entity granting the credit.

Generally, trades effected within the first two weeks of any month will mature on the last day of the same month, and deals executed in the last two weeks of the month, will mature on the last day of the following month. Each transaction cannot be extended more than two times.

 

CACELLATION FOR NON-COMPLIANCE

This cancellation will be effected in the event of non-compliance of the following obligations by the recipient of a credit operation:

  • Payment of initial guarantees and/or commissions.
  • Payment of complementary guarantees.
  • Payment of deferral surcharges.

In these cases, the entity that granted the credit will order the broker-dealer or broker which mediated the spot transaction, to issue an irrevocable order to reverse it, which is in its power to do.

 

 

Follow us in:
Copyright © Bolsas y Mercados Españoles 2018

MARKET STATUS

The Market Status informs through quick and easy-to-read notices on incidents affecting the Equity markets as well as Indices and financial systems operated by BME.

If an issue occurs, the message "TRADING" will change to "MARKET ISSUE" to reflect that a market event has occurred. By clicking on the Issue of the published alert it will be possible to access the information and intraday updates associated with this incident, which will be published immediately.

Note: BME will use its discretion to assign the severity of an incident