Fixed
Income
3
35
STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
AIAF members
Only market members can operate in AIAF.
Article 10.1 of AIAF’s Regulations establishes that
“members are those who meet the conditions of the
market in accordance with the Securities Market Act.”
Article 37 of the Securities Market Act, item 1,
stipulates that: “Attainment of the status of member of
an official secondary market shall be governed by the
general rules established in this Act or the specific rules
of each market. The following may become members
of official secondary markets:
a) Brokerage companies and agencies.
b) Spanish credit institutions.
c) Investment firms and credit institutions autho-
rised in other Member States of the European Union
provided that in addition to complying with the requi-
rements laid down in Title V of this Act for operating in
Spain, the authorisation given by the authorities in the
home country enables them to execute the investment
services set forth in points b) or c) of Article 63.1.
d) Investment firms and credit institutions autho-
rised in a country that is not a Member State of the Eu-
ropean Union provided that, in addition to complying
with the requirements laid down in Title V of this Act
for operating in Spain, the authorisation given by the
authorities in the home country enables them to exe-
cute the investment services set forth in points b) or c)
of Article 63.1. The Minister of Economy and Finan-
ce may deny those entities access to Spanish markets
or impose conditions upon access, for prudential rea-
sons, where Spanish entities are not given equivalent
treatment in the home country or where compliance
with the rules of order and discipline in the Spanish
securities markets is not guaranteed.”
The rights that institutions acquire for being mar-
ket members are mainly set out in Article 11 of the
Regulations, without detriment to other rules, and are
as follows: a) Conduct transactions for their own ac-
count or for clients; b) List and cross operations with
other members, either directly or via brokers. They are
responsible for giving exact prices and updating them.
Their activity must be in line with the current Regula-
tions and the applicable legislation; c) Quote and cross
operations with their clients as regards what is set out
in Article 30 to 35 of the Regulations and the applica-
ble legislation; d) List in the normalised system in ac-
cordance with Articles 27 to 29 of the Regulations, and
in standardised systems, in accordance with Articles 36
to 38 of the regulations; e) Receive information from
the market in the same conditions as other members; f)
receive information on transactions; g) Obtain for each
date and security exact details of the outstanding balan-
ce of securities registered in their accounts; h) Present
their complaints regarding procedures established in
the Regulations.
The institutions that become market members also
assume the obligations set out in Article 12 of the Re-
gulations and, of course, without detriment to others
arising from the applicable legislation, and they are: a)
Fulfil the Regulations and Circulars; b) Communicate
to the market the information required by it and, where
appropriate, to their clients; c) Communicate the ope-
rations and those required for confirmation, settlement
and clearing; d) Communicate the volumes, price and
internal rate of return (IRR), conditions and periods set
by the Regulations.
1...,25,26,27,28,29,30,31,32,33,34 36,37,38,39,40,41,42,43,44,45,...83