Bolsas y Mercados Españoles
Company
search
Home / ABOUT US / SERVICES FOR MEMBERS / Access to Spanish Markets >
Access to Spanish Markets

 

 

CONTINUOUS MARKET (SIBE)

The maximum and best exponent of the globalization and modernization of the Spanish stock markets is, without a doubt, the Continuous Market (SIBE), where the trading of the shares of the most representative companies of the Spanish economy and with the largest volume of hiring can be found.

The Barcelona Stock Exchange provides optimal access to the aforementioned Continuous Market (SIBE), guaranteeing that any national or foreign investor obtains, through the Members of this Exchange, the best existing price at all times in the aforementioned Market and the same liquidity and speed in the execution of the orders that can be carried out from any other Spanish Stock Exchange.

Continuous Market (SIBE) main characteristics:

ORGANIZATION AND OPERATION

Law 24/1988, of July 28, on the Securities Market, establishes a state-wide stock exchange interconnection system, integrated through a computer network that interconnects the four existing markets in the stock exchanges of Barcelona, Bilbao, Madrid and Valencia, for the negotiation of those securities agreed by the National Securities Market Commission. Likewise, the aforementioned Law indicates that said system will be managed by the Sociedad de Bolsas, whose capital is distributed equally among the Governing Companies of the four Spanish Stock Exchanges.

CONTRACTING SYSTEM

Electronic multilateral and automatic trading system, in which the priority of closing operations is determined by the price and, in the case of equality of prices, by the temporal priority in the introduction of the orders. The trading unit is a share or a subscription right. However, a different contracting unit may be established by means of an Operating Instruction in the case of specific securities where it is deemed necessary.

SESSIONS AND SCHEDULES

Every business day from Monday to Friday that appears in the calendar established for this purpose and in accordance with the following hours:

  • Opening auction:

Period between 8.30 am and 9 am, for the introduction, modification and cancellation of proposals. During this period no trades are crossed.

  • Open session

Period between 9 a.m. and 5.30 p.m., in which continuous contracting takes place.

  • Volatility auctions

They have a duration of 5 minutes plus a random ending of a maximum of 30 seconds and are carried out before operations, whose prices could reach or exceed the maximum limits of variation stipulated (static and dynamic ranges), are registered

  • Closing auction

Between 5.30 pm and 5.35 pm, dedicated to the introduction, modification and cancellation of orders. During this period no trades are crossed. The session will end at any time, within an additional maximum period of 30 seconds with a random ending.

CONTRACTING UNIT AND VARIATIONS IN THE PRICES OF EACH SESSION

The contracting unit will, as a general rule, be a unit of the corresponding value incorporated into the System. However, by means of an Operating Instruction, a different contracting unit may be established in the case of certain securities when it is deemed appropriate.

At the beginning of each session, the closing price of the previous session will be taken as the reference price.

Price and static range

The static price is the price arising from the last auction or the limit price of the static range in the event that a volatility auction is promoted by breaking the static range.

At the beginning of the session, the static price coincides with the reference price.

The static range is the maximum variation allowed with respect to the static price established at all times.

The static range is calculated based on the historical volatility of each security, and is operational throughout the session.

Price and dynamic range

The dynamic price is the last traded price of a security, either arising from an auction or from the execution of each incoming order in open session.

This price is continuously updated during the session.

The dynamic range is the maximum variation allowed with respect to the dynamic price. It is calculated based on the historical series of price variations during the session of each security.

The dynamic range is operational in both the open session and the closing auction. On the contrary, it is not operative in the opening auction, nor in the volatility auctions, nor in the extensions of the opening and closing auctions.

PRICE SETTING AND ASSIGNMENT OF CONTRACTING UNITS

  • At the opening auction

In view of the orders entered in the adjustment period, the first price will be the one that allows a greater number of trading units to be negotiated; In the event that two or more prices allow the same number to be negotiated, the first price will be the one that produces the least imbalance, the difference between the volume offered and the volume demanded at the same price being understood as the imbalance. If there is no imbalance or if the imbalances are equal, the price of the side with the largest volume will be chosen. If the three previous conditions coincide, it will be the auction price, of the two possible, the closest to the last one negotiated with the following exceptions:

  • In the event that the last negotiated price is within the range of the two possible auction prices, the auction price will be that last negotiated price.
  • If there is no last price traded or it is outside the price range of the static range, the auction price will be the closest to the static price.
  • Once the first price has been set, the market orders will be filled first and for the best, then the limited orders with better prices than the auction price and, finally, the rest of the orders limited to the auction price based on the time order in which they were entered into the system.
  • During the open session

If after the opening auction the offer and demand do not coincide, the security may trade during the session as soon as the aforementioned condition is met.

In the open session, the counterparties that close operations will be distributed among the orders that make up the dominant position, according to price range and, at equal prices, according to time priority.

UNIQUE PRICE SETTING METHOD (FIXING)

This modality is adjusted to the following schedule:

-       First auction period:            from 8.30 A.M. to 12.00 P.M.

-       First pricing:                        12.00 P.M

-       Second auction period:       from 12.00 P.M to 4.00 P.M.

-       Second pricing:                   4.00 P.M.

 

LATIN AMERICA STOCK MARKET (LATIBEX)

The four Spanish Stock Exchanges have organized the Latin American Stock Market in Euros (LATIBEX) with the aim of creating a meeting point between Latin American companies with a capitalization of more than 300 million euros and European investors. The members of the aforementioned four Spanish Stock Exchanges operate in said market, under equal access conditions.

LATIBEX is a multilateral system authorized by the Spanish Government. This Market became operational on December 1, 1999.

LATIBEX is the ideal vehicle to channel European investment to Latin America since it allows European investors to access the main Latin American companies through a single market, a single contracting and settlement operating system with recognized transparency and security standards, and using a single currency: the Euro.

TRADED STOCKS

In order to join LATIBEX, the securities must be previously admitted to trading on a Latin American Stock Exchange whose regime for admission to trading, supervision and dissemination of information complies with criteria comparable to those that govern the Spanish stock market.

TRADYING SYSTEM

Trading in the Latin American Stock Market (LATIBEX) is carried out in Euros through the same electronic trading system that is used in the Spanish Continuous Market (SIBE).

The priority of closing operations is determined by the price and, in the case of equality of prices, by the temporal priority in the introduction of the orders.

SESSIONS AND SCHEDULE

Every business day from Monday to Friday that appears in the calendar established for this purpose and in accordance with the following hours:

  • Opening Auction

Period between 8.30 am and 11.30 am, intended for the introduction, modification and cancellation of orders. During this period no trades are crossed. This auction ends at any time, within a random 30 second period starting at 11:30 am.

  • Open session

Period between 11.30 am and 5.30 pm, in which the continuous hiring takes place.

  • Closing Auction

Period between 5.30 pm and 5.35 pm, intended for the introduction, modification and cancellation of orders. During this period no trades are crossed. This auction ends at any time, within a random 30 second period starting at 5:35 PM.

PRICES AND THEIR VARIATIONS FOR EACH SESSION

At the beginning of each session, the closing price of the previous session will be taken as the reference price.

The securities may be listed with the minimum price variations established in accordance with current Regulations, the minimum price being 0.01 euros.

Price and static range

The static price is the price arising from the last auction or the limit price of the static range in the event that a volatility auction is promoted by breaking the static range.

At the beginning of the session, the static price coincides with the reference price.

The static range is the maximum variation allowed with respect to the static price established at all times.

The static range is calculated based on the historical volatility of each security and is operational throughout the session.

 Price and dynamic range

The dynamic price is the last price traded, either arising from an auction or from the execution of each incoming order in open session.

This price is continuously updated during the session.

The dynamic range is the maximum variation allowed with respect to the dynamic price. It is calculated based on the historical series of price variations during the session of each security.

The dynamic range is operational in both the open session and the closing auction. On the contrary, it is not operational in the opening auction, nor in the volatility auctions, nor in the extensions of the opening and closing auctions.

SPECIALISTS AND PERFORMANCE REGIME

  • The members of the market who acquire the status of specialist of the securities listed on LATIBEX undertake to constantly maintain positions and purchase and sale prices and minimum effective amounts for certain securities. They must maintain a spread or range between the purchase and sale prices, arbitrating the prices of this market with the markets of origin, trying to reduce volatility not linked to the market.

CLEARING AND SETTLEMENT OF TRANSACTIONS

The securities traded on the Latin American Stock Market (LATIBEX) are represented by book entries and the operations carried out on these securities are cleared and settled in Iberclear two business days after the transaction date.


FTSE LATIBEX ALL-SHARE INDEX

To monitor the Latin American Stock Market (LATÍBEX), the FTSE LATIBEX All-Share index is calculated and disseminated in real time, based on 1,000 as of December 1, 1999.

OTHER INDEXES

  • FTSE Latibex TOP, designed to represent the behaviour of the largest and most liquid LATIBEX companies, with the aim of being suitable for derivatives.

FTSE Latibex BRASIL, which represents the behaviour of the most liquid Brazilian companies. 

 

BME MTF EQUITY

BME MTF Equity is a multilateral trading facility (MTF) managed by BME and subject to the supervision of the CNMV. Each of its segments has its own specifically designed regulation, and costs and processes adapted to the characteristics of the different types of companies, maintaining high levels of transparency.

This MTF is made up of three segments:

1.- BME Growth Segment. It is aimed at companies with small capitalization from any activity sector seeking to expand (representation of the real estate sector through REITs is important). This market, which has the European SME Growth Market seal, provides visibility and credibility to companies and facilitates access to capital for medium-sized companies.

2.- BME CIIs Segment. It is designed for SICAVs (Variable Capital Investment Companies), for Hedge Funds and Investment Funds.

3.- BME VCCs Segment. Includes Venture Capital Companies.

 

BME GROWTH SEGMENT

TRADING SYSTEM

BME Growth securities are traded through the same electronic trading system used in the Spanish Continuous Market (SIBE).

Depending on their size and trading volume, the securities can be traded in the general trading mode or in the single price setting mode (Fixing).

SESSIONS AND TRADING FORMS

This market is traded every business day from Monday to Friday that appears in the calendar established for this purpose and in accordance with the following trading modalities:

1. General Trading Modality

It is the modality of the Market in which the priority of execution of operations is determined by the price and, in case of equality of prices, by the temporal priority in the introduction of the orders.

1.1. Opening auction

Period between 8.30 am and 9.00 am, intended for the introduction, modification and cancellation of orders. During this period no trades are crossed. This auction ends at any time, within a random 30 second period starting at 9:00 AM.

1.2. Open market

Period between 9:00 a.m. and 5:30 p.m., in which continuous contracting takes place.

1.3. Closing auction

Period between 5.30 pm and 5.35 pm, intended for the introduction, modification and cancellation of orders. During this period no trades are crossed. This auction ends at any time, within a random 30 second period starting at 5:35 PM.

2. Single pricing method (Fixing)

It is a form of negotiation that is based on auctions. Specifically, two auctions are held:

2.1. First auction: From the beginning of the session at 8.30 am to 12 noon, with a random closing of 30 seconds.

2.2. Second auction: From the end of the allocation of the first auction (12 noon) until 4 pm, with a random close of 30 seconds.

In this type of negotiation, the same pricing rules apply to all auctions and there are no auction extensions.

PRICES AND VARIATIONS FOR EACH SESSION

The securities may be listed with a minimum price variation that is equal to or greater than that corresponding to:

a) The liquidity band corresponding to the range of the average daily number of operations for each security in the most relevant market in terms of liquidity; and

 b) The price range in that liquidity band corresponding to the order price.

This minimum price variation will be applied in accordance with the provisions of Delegated Regulation (EU) 2017/588 of the Commission of July 14, 2016.

CLEARING AND SETTLEMENT OF TRANSACTIONS

The securities traded in the BME Growth segment of BME MTF Equity are represented by book entries and the operations carried out on such securities are cleared and settled on D + 2 at Iberclear.

LIQUIDITY PROVIDER

The special characteristics of the companies incorporated into BME Growth make the figure of the Liquidity Provider necessary to favour the liquidity of the transactions and achieve a sufficient frequency of contracting.

This entity must be an investment services company or a credit entity that is a member of the Market, with which the listed company has entered into a liquidity provision contract.

IBEX GROWTH MARKET AND IBEX GROWTH MARKET ALL SHARE INDICES

To monitor BME Growth, the IBEX Growth Market 15 and IBEX Growth Market All Share indices are calculated and disseminated in real time, both based on 1,000 as of December 31, 2015.

 

WARRANTS MARKET

CONCEPT

Warrants are securities that grant the holder, through the payment of a price (premium), the right, but not the obligation, to buy (CALL) or sell (PUT) a specified quantity of an asset (underlying), at a price of predetermined exercise (strike), during its life (American warrant) or on the expiration date (European warrant).

UNDERLYING ASSETS

There are warrants on the following underlying assets:

- Spanish and foreign shares.

- National and international stock market indices.

- Exchange rates (currencies).

- Others (baskets of shares, interest rates, bonds, raw materials, etc.).

SESSIONS, SCHEDULE AND HIRING

Every business day from Monday to Friday listed in the calendar established for this purpose and from 9 a.m. to 5:30 p.m.

Warrants issued by different entities, once admitted to trading, are contracted through electronic systems, and on an ongoing basis, like most fixed and variable income securities traded on the Spanish stock market.

Warrants are traded in a special segment, with regulations adjusted to the characteristics and specific trading requirements of this type of product. Consequently, the contracting of warrants is governed by the general rules applicable to equities, with the following particularities:

• Non-existence of opening and closing auctions, maintaining the volatility auctions, the latter being able to be activated if it is estimated that the theoretical price of the warrant is outside the static price range.

• The validity of the orders is limited to the current session.

• The closing price is determined taking into consideration the best buy and sell positions in the market at the close of the session.

• Incorporation of the warrants specialist, maximum one in each security, as a figure that helps to promote liquidity and that favours the price formation process. The specialist will be able to introduce, through approved external applications, combined limited buy and sell orders that cannot be traded at the moment of their introduction against existing positions in the market, but that, once introduced, may give rise to confrontational negotiations. with other incoming orders.

• The contracting of blocks has specific conditions of price and minimum amount.

• Anticipation of the interruption of the trading of warrants, mainly due to causes that affect the underlying assets.

SETTLEMENT

The settlement of the operations is carried out through Iberclear, two business days after the contracting date.

ADVANTAGE

Investing in warrants has the following advantages:

- Allows high leverage, due to the lower investment (premium) in the warrant compared to direct investment in the underlying asset.

- It has a limited risk, since the maximum loss is equal to the investment amount (premium) of the warrant.

- It allows obtaining unlimited potential benefits, equivalent to the difference between the preset exercise price (strike) of the warrant and the price registered for the underlying asset.

STRATEGIES

Due to their characteristics, warrants can be used to:

 - Hedging of risks of adverse movements in the price of the underlying asset, since the warrant incorporates a right to buy or sell, but not an obligation.

 - Short-term or maturity investment, based on leverage, with limited risk and with the unlimited potential benefits provided by warrants.

 

EXCHANGE TRADED FUNDS (ETFs) MARKET

ETFs (Exchange Traded Funds) are Collective Investment Institutions whose objective is to replicate the evolution of an index or a basket of securities. The units or securities are traded on the SMART platform in real time and with the same characteristics that apply to any other listed security.

SESSIONS, SCHEDULE AND CLOSING PRICE

Every business day from Monday to Friday that appears in the calendar established for this purpose.

The market starts with an opening auction between 8:30 am and 9:00 am, with trading taking place continuously until 5:35 pm. There is no closing auction.

The closing price will be the midpoint of the best buy and sell position, rounded up. If there are no positions or it is outside the static range, it will be that of the last trade. In the event of not having been negotiated, it will be the reference price for the session.

CHARACTERISTICS

The main characteristics of ETFs are:

• Accessibility: The purchase and sale of ETFs is carried out, like shares, through the usual financial intermediaries and during the same trading hours.

• Transparency: The composition of the ETF is known at all times. The market offers all the relevant information (prices, volumes, daily composition of the Fund's portfolio, daily net asset value and indicative net asset value in real time).

 Liquidity: The negotiation is carried out in the Stock Market Interconnection System (SIBE). In addition, each ETF has specialists who provide liquidity. When the difference between the price of the security and its corresponding indicative net asset value is significant, a volatility auction may be applied, so that the price of the security adjusts to the aforementioned indicative net asset value.

• Agility: ETFs allow you to obtain exposure to a portfolio of stocks with a single transaction.

• Hedging strategy: Trading with ETFs allows the use of hedging strategies in a complementary way to derivative products.

• ETFs are subject to the general taxation of the sale or transfer of shares. Unlike Investment Funds, there is no withholding on account of capital gains derived from the redemption or transfer of ETFs. The transfer tax deferral regime cannot be applied to these products, that is, the transfer tax exemption provided for the rest of the Funds is not applied.

SETTLEMENT

The settlement of the executions is carried out through Iberclear two business days after the date of operation.

 

 

 

 

 

 

Follow us in:
Copyright © BME 2021