Fixed
Income
3
39
STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
(II) NEW ISSUES SEGMENT
This segment covers issues which fulfil the following:
The volume issued, aggregated to the code level of
the security, is more than €200 million.
The issuer has stated in their launch that the place-
ment of the securities is for Spanish or foreign institutional
investors, as set out in Royal Decree 291/1992 of March
27, 1992 on Issues and Offerings of Securities.
These issues will be excluded from the system one
month after their date of disbursement.
CLEARING AND SETTLEMENT
Operations performed in AIAF by its members
have to be cleared and settled. These activities are per-
formed in accordance with the clearing and settlement
system regulated by Article 42 of the Market’s Regula-
tions and Circulars.
However, clearing and settlement in AIAF is not
performed directly by the system but by another enti-
ty. Currently, this entity is Sociedad de Gestión de los
Sistemas de Registro, Compensación y Liquidación de
Valores, S.A.(Iberclear), which manages the registry,
clearing and settlement of securities traded on Spain’s
markets.
SEND, AN ELECTRONIC PLATFORM FOR INDIVIDUAL
INVESTORS
Bolsas y MercadosEspañoles (BME), via the AIAF
Corporate Debt Market, has created an electronic
platform for fixed income trading by individual inves-
tors. It operates under the name of Electronic Debt
Trading System (SEND).
This new platform meets the demands of mar-
kets and of greater participation by individual inves-
tors in bond markets. It represents a significant ad-
vance in enhancing the transparency and liquidity
of the Spanish corporate debt market, following the
recommendations of new regulations, particularly
the Markets in Financial Instruments Directive (Mi-
FID) and of national and international regulatory and
supervisory authorities.
It enables individual investors to enter or exit,
buy or sell, simply, directly and transparently, as hap-
pens in the stock market, thereby gaining autonomy
and independence.
SEND aims to become a benchmark in providing
retail investors with information on fixed income pri-
ces at a time when private saving is on the increase.
This is expected to encourage issuers to launch issues
aimed at these retail savers.
This platform was developed on the basis of
BME’s experience and technology, with the neces-
sary adjustments to the functioning of the AIAF fixed
income market. This market has a proven track re-
cord in technology with which individual investors
are already acquainted, and they are able to benefit
from safer and quicker operations.
The results of SEND confirm that it has achieved
the objectives it was designed to meet: boost trans-
parency in Spanish fixed income trading, especially
with respect to retail investors, enabling its members
to meet the new regulatory requirements and ensu-
ring clients that the best prices and conditions will be
sought in keeping with the policy of best execution
in all buy and sell transactions. This helps protect
retail investors, enabling them to buy and sell easily
in a direct and transparent manner, while affording
them greater freedom and independence in respect
of the entity where their securities are deposited.
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