Fixed
Income
3
36
STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
By volume refers to the total nominal amount
crossed and the price is that at which the transaction
was completed; e) Formulate the position proposals in
accordance with Articles 28, 32, 35, 37 and 40 of the
regulations; f) Quote buy prices definitively or indicati-
vely, where appropriate, and provide a counterparty in
accordance with the regulations; g) Maintain a “Regis-
try of own account operations” and a “Registry of third
party operations”. In the registry of third party ope-
rations, each member must set out all the operations
conducted in the market with their clients and which
affect the ownership of securities. Members obtain or
are in a position to obtain for each date and each secu-
rity the exact details of the outstanding balance of the
securities registered. Each member is only responsible
for its registries; h) Members must issue and deliver to
their clients receipts of the operations conducted on
their account and recorded in the registry for third par-
ties. The receipts must contain, at least, the following
data: full identification of the securities acquired, with
the name and surname, corporate purpose of the inves-
tor, address, tax identification number, nominal value,
purchase price and withholding, where appropriate; as
well as the receipts issued, members must provide their
clients, at their request, with the documents accredi-
ting the balances of the different securities held in their
name and on their account, at a certain date; i) Colla-
borate with the governing body for the control, supervi-
sion and smooth functioning of the market; and j) Fulfil
and ensure compliance with the Securities Market Act,
in particular Articles 78 to 83 and the implementing
provisions.
Marketable securities
AIAF’s marketable securities are fixed income
securities and, in particular, those set out in Article 8
of the Market’s Regulations. The list, however, is not
restrictive as item 2 says that “following a report from
the National Securities Market Commission the gover-
ning body can approve different types of securities to
be quoted and traded on the market in accordance with
prevailing regulations.” The securities traded on AIAF,
whether those specifically mentioned in the regulations
or approved under item 2 of Article 8 of the Regula-
tions, are as follows:
Commercial paper: Short-term assets of between
one week and 36 months. They are issued at a discou-
nt, with implicit return. Issues are made under the fra-
mework of a programme that sets a maximum balance.
Issues are done by direct assigning or by auction. There
is no withholding tax if the holder is an entity subject
to corporate income tax, represented in the book-entry
system and is quoted in an official market like AIAF
Mercado de RentaFija.
Bonds and debentures: Medium- and long-term
assets of 3 to 5 years and of more than 5 years. The
return can be explicit (fixed or variable), implicit (zero
coupon) or mixed. They can be main or subordinated
debts. There is no withholding tax if the holder is an en-
tity subject to corporate income tax, represented in the
book-entry system and is quoted in an official market
like AIAF Mercado de RentaFija.
Securitisation assets: Securities backed by assets
that provide economic flows. These assets can be of
a homogeneous nature, with historic databases, and
for which there are no legal obstacles for their transfer,
and with technical management. The securitised assets
can be mortgages (currently most of them) or assets in
general. When they are medium or long term, they are
securitisation bonds; and, short term, they are securiti-
sation paper.
1...,26,27,28,29,30,31,32,33,34,35 37,38,39,40,41,42,43,44,45,46,...83