Fixed
Income
3
38
STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
The procedure that members must follow is re-
gulated by Articles 27 and following of the Market’s
Regulations. There are two procedures:ageneral one
for own account operations between members; and
another one between members and clients.
TRADING OF SECURITIES ON SENAF
Purchases and sales conducted under the gene-
ral trading model can be spot, forward, spot sell/buy-
back, transactions or repo transactions at a set date,
in accordance with Circular 2 of April 29, 1997 re-
garding transactions involving securities listed on the
AIAF Mercado de RentaFija.
Outright spot transactions are just one purchase or
sale where the two sides agree a settlement date which
is no further than the fifth working day following the
date of the trade.
Outright forward transactions are just one purcha-
se or sale where the two sides agree a settlement date
which is after the fifth working day following the date
of the trade.
Spot sell/buy-back transactions consist of two pur-
chases/sales in the opposite direction that meet the fo-
llowing features: both are contracted at the same time
by the same parties but the buyer in the first is the se-
ller in the second, and vice versa; the issue and num-
ber of securities are the same; the settlement date of
the operations is different; they can both be spot, both
forward or the first spot and second forward. The spot
sell/buy-back transactions, from the purely financial
standpoint, are like repos, but are different from them
as regards the accounting treatment, as the asset co-
mes off the seller’s balance sheet and onto the buyer’s.
At the return date, the opposing entry is made.
Trading of securities on SENAF
AIAF offers the opportunity for the SENAFelectro-
nic platform to be used for the trading of securities
admitted to the market. Two trading segments have
been created for this purpose, depending on the type
of security that SENAF’s financial institution members
are interested in listing and trading. They are:
(I) ASSETS WITH COLLATERAL
This segment covers issues which fulfil the fo-
llowing:
They are backed by mortgage loans, loans to the
public sector or any other type of guarantee established
in the prevailing regulations.
The volume issued, aggregated to the code level of
the security, is more than €1,000 million.
They have a known and pre-established structure
of financial flows, via payments of fixed coupons and
with final redemption at par.
They have a redemption period as of the date of
issue equal to or more than three years.
They have a credit rating equivalent to or more
than AA/Aa from an internationally recognised rating
agency.
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