Equities
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STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
Allowing VCFs and funds to trade in an organised
market provides them with greater liquidity and trans-
parency and helps to popularise this new class of asset,
facilitating their incorporation into the portfolios of ins-
titutional and individual investors.
Law 25 of November 24, 2005, which regulates
VCFs and their management entities, gives them a more
flexible operating framework and introduces new finan-
cial figures, which are becoming increasingly common
in the European Union (EU). One of these is the op-
tion to diversify investment by creating venture capi-
tal funds and companies, whose assets must be mainly
invested in this type of vehicle. This was designed to
widen the base of traditional investors in venture ca-
pital to include other institutional investors and even
retail investors.
The MAB Regulations provide for trading, settle-
ment and registry of securities and financial instruments
which, because of their differential characteristics, need
to be handled within a specific scheme. This is the case
for VCFs, both those which invest in other VCFs and
those which invest directly in securities issued by the
companies in which the VCFs invest.
The MAB market for securities issued by VCFs is
based on a system whereby prices are set at a point
where supply and demand meet within a fixing period
and a distinct trading segment.
MAB FOR HEDGE FUNDS (HFS) AND FUNDS OF
HEDGE FUNDS (FHFS)
The MAB for HFs and FHFs is regulated by the
same rules as those applied to SICAVs, with some
specifications. On July 21, 2006, Circular 5/2008 was
approved and published, laying down the regulations
applicable to HFs and funds of HFs, the securities of
which are listed on the MAB. This Circular was updated
by Circular 3/2010 on January 4, 2010.
These institutions have particular features such as
different intervals for calculating settlement value, a
specific redemption regime, minimum periods of conti-
nuation of their shareholders or unit holders, a regime
of early warnings for subscriptions and redemptions,
and the possibility of prohibiting redemptions on all
settlement value dates.
The advantages that MAB brings to FHFs are grea-
ter liquidity, more investors and an efficient trading
system proven in the segment of SICAVs, which could
facilitate the transformation of some ordinary SICAVs
into SICAVs of HFs.
MAB´s flexibility has allowed its rules to be adap-
ted to these institutions, with Nordinvest, Sociedad de
InversiónLibre managed by NORDKAPP INVERSIO-
NES, the first company to be listed on this new segment
of MAB in January 2009. Subsequently, some of these
SICAVs have been transformed into HF companies and
FHFs. At 2011 year end, four HFs (Alpes 2000, Diver-
sity Inversiones, Equilibrialnvestments and Nordinvest)
and two FHFs (BreixoInversiones and Team Spirit) were
listed on the MAB.
TAX INCENTIVES AND SUPPORT FOR COMPANIES
One of the important elements for promoting the
MABare tax incentives. They have a low tax collection
cost, while their effectiveness and contribution is very
high as they are well received by investors when ma-
king investment decisions and have proved to be one
of the most effective instruments for developing today’s
alternative markets in Europe.
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