Equities
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STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
F. IBEX indices
In 1991,Sociedad de Bolsa saw the need to create
an index representing the continuous market because
of its increasing importance in total equity trading in
Spain (in excess of 90%). It also decided to create an in-
dex upon which derivatives could be traded as a result
of the advanced state of this project by MOFEX (later
MEFF RV).
As the FIEX 35 and the MEFF 30 indices were
already in place, and warrants had been issued refe-
renced to the FIEX 35, Sociedad de Bolsas decided to
acquire these two indices, continue the FIEX 35 series
(with a benchmark base of 3,000 points at December
31, 1989), change the name to IBEX 35® and begin to
disseminate it as its own as of January 14, 1992, when
the futures and options market was launched in Spain.
The IBEX 35® is the official index of the continuous
market. Sociedad de Bolsas, S.A. calculates, publishes
and disseminates it in real time. The index is weighted
by capitalisation and comprises the 35 most liquid
stocks on the continuous market of Spain’s four stock
exchanges.
It is designed to act as the official index of the
continuous market and to be used by Spanish and in-
ternational analysts to monitor the performance of the
Spanish stock market. It is also the underlying for the
trading, clearing and settlement of futures and options
contracts on the Spanish Futures and Options Market
(MEFF RV).
An independent committee of experts selects
stocks on the basis of liquidity and their weighting in the
index by market value adjusted for free float, enabling
the index to be representative and reliable. These two
objectives mean that the index reflects the reality of the
Spanish market, while the number and choice of the
shares included in it does not allow for manipulation
and so ensures its efficiency.
The functions of the Technical Advisory Commit-
tee responsible for the indices are:
• Ensure that the indices are calculated by the
governing body in accordance with Sociedad de Bol-
sas’ Technical Rules on the Settlement and Calculation
of Indices in force at any given time.
• Guarantee the smooth functioning of the in-
dices when used as the underlying for the trading of
derivatives.
• Study and approve, when necessary and
within a maximum period of three months, new defini-
tions of the indices.
• Define the rules for drawing up and calcula-
ting the index.
Ordinary Technical Advisory Committee meetings
take place twice a year, coinciding with the calendar
half-years, in order to redefine the indices for the fo-
llowing period.
Surveillance meetings take place twice a year, in
the calendar quarters not coinciding with the half-years.
During these meetings, components will be modified
only when significant changes in terms of liquidity re-
quire the indices to be redefined for the following pe-
riod.
Any additional meetings are held on an extraordi-
nary basis.
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