Fixed
Income
3
41
STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
B. Fixed income market
The Spanish stock market trades fixed income is-
sues via the Electronic Fixed Income Market and the
Barcelona, Bilbao and Valencia stock exchanges.
ELECTRONIC FIXED INCOME MARKET
The Electronic Fixed Income Market is used to
trade fixed income securities admitted to trading and
book-entry public debt.
All trading is continuous and carried out electro-
nically in real time, while the market is anonymous for
both orders and trades. The trading system provides
operators with the tools needed to manage their orders,
allowing them to consult them or amend them at any
time. It also provides information and tools regarding
the products traded thereon: features of the securities,
volumes traded and historical prices of trades, calcula-
tion of IRR, coupon flow and redemptions, etc.
Members of the four Spanish stock exchanges
can trade on the system (market members consisting
of brokerage companies, brokerage agencies, and fi-
nancial institutions) in addition to entities participating
through market members. Market members have access
via the SIBE terminals and external certified applica-
tions.
The market is open from 9.00am to 4.30pm.
Type of trading
1. Multilateral trading
Multilateral trading involves trades that are the re-
sult of matching buy and sell orders posted by market
members.
Orders are placed on the market in order of prio-
rity based on price criteria and the time at which they
are submitted. Orders are traded automatically based
on these priority criteria.
All orders placed are limit orders to be executed at
a specified price or better.
The types of limit order with regard to the way in
which the nominal amount is negotiated are as follows:
• Unconditional orders: The order is executed
immediately if there is a matching order on the market
at the same price or better. If no matching offer exists
or the price is not sufficient, the order or the unfilled
part thereof will be placed on the market in order of
priority based on price criteria and the time at which it
is submitted, and remain on the market until the order
is filled or cancelled.
• With limits:
-
Minimum volume: An implicit condition is
that at least a minimum order quantity must be traded
when the order is placed. If the minimum order quan-
tity is traded, the order remains on the market until the
remainder is traded, although this remaining amount
can be traded in any quantity. If no matching offers are
found to meet the minimum acceptable order quantity,
the order is cancelled.
-
All-or-none: The order is executed if, when it
is placed, there is a matching order for the entire num-
ber of securities specified. Otherwise, the order is can-
celled.
-
Fill-or-kill: The order is executed for the part
for which there is a matching offer when it is placed,
while any part that cannot be filled is cancelled.
The orders can be introduced with the following
validity:
• Day validity: The order is good only for the day it is
placed.
• Good till date: A date within the next 30 days can be
selected. At the end of this period, the order or the
unfilled part thereof is automatically cancelled.
• Thirty-day validity: Any order or the unfilled part the-
reof is automatically cancelled after 30 days.
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