Equities
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STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
A. Stockmarket
The electronic trading of shares was inaugurated
in Spain in 1989. This system is administered by Socie-
dad de Bolsas, S.A. which is owned by each of the four
Spanish exchanges.
In 1995, the SIBE (Spanish electronic trading plat-
form) replaced the technical trading platform. SIBE
was developed entirely by the Madrid Stock Exchan-
ge. SIBE was revamped in 2012, unifying into a single
system the trading of shares, ETFs, warrants and other
investment products.
Thanks to its advanced technology and the various
functions, in recent years SIBE has handled a large vo-
lume of trading, guaranteeing efficiency and transpa-
rency at all times.
SIBE is an order-driven market, offering real-time
information on screen and the automatic dissemination
of both buy and sell prices and trade prices.
The system allows all four Spanish markets to
channel orders from terminals to the same central com-
puter where they are then ordered according to price
and when the order is placed. If a matching order
exists during the open market session, the order is au-
tomatically executed; otherwise it shall remain on the
order book.
SIBE offers the following features:
• Continuous trading: eight and a half hours of
trading a day (9.00am to 5.30pm), during which time
orders are placed and trades executed.
• During this period order can be entered, alte-
red or cancelled, but no trades can be executed. The
system calculates, in real time, a break-even price. All
auctions have a 30-second random end period. At the
end of the opening (8.30am to 9.00am) and closing
(5.30pm to 5.35pm) auctions, the opening and
closing prices are set for each share. Volatility auctions
(on one or various shares) may occur during the trading
session. These auctions last fiveminutes and may be tri-
ggered by static and dynamic ranges.
• Single price for each stock on all four Spanish
exchanges.
• Times and regulations are intended to ensure
equal access.
• The Oversight Department guarantees opera-
tors equal opportunities in accessing the market.
There are three ways of trading:
1. Primary market: This represents 58% of daily
trades in 2011. The following trading possibilities are
included in general trading:
• General trading: Trading is open between
9.00am and 5.30pm. The most liquid stocks are traded
in this way.
• Latibex: Trading is open between 11.30am
and 5.30pm. Those Latin American stocks which are
listed on the SIBE are traded in this segment.
• Fixing: This is for less liquid stocks within
the electronic trading system. Two auctions are held
(8.30am to 12.00am and 12.00am to 4.00pm) to ensu-
re lower volatility and more efficient price formation.
2. Block trading: A communication system for
large volumes of stocks (between 9.00am and 5.30pm)
with two categories adapted to MiFID requirements in
July 2008 for the following types of transactions:
• Agreed block category: transactions are re-
ported with a ± 1% difference on the average of the
best purchase and sale positions of general trading. The
cash amount of the transaction must reach, at least, the
following amounts depending on the average daily
trading volume (ADTV) of the stock in question in the
previous year.
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