Fixed
Income
3
44
STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
C. Governmentdebt. SENAF
SENAF, the BME’s electronic platform for the
trading of Spanish public debt, operates as a multila-
teral trading system, adjusted to the requirements of
the Markets in Financial Instruments Directive (Mi-
FID) and the Spanish regulations which transposed
this European directive and created this new institu-
tion for financial markets.
Following the takeover of SENAF by the AIAF Fi-
xed Income Market, this became the body managing
and supervising the electronic trading platform. This
is a significant advance in terms of transparency and
enables the platform to widen its sphere of business
and add new instruments to its range of products
with which members can trade.
Its clients include Europe’s leading banks and it
has operating terminals in Madrid, Barcelona, London,
Paris and Frankfurt. It has an automatic connection
with the IBERCLEAR clearing and settlement system,
as well as with MEFFCLEAR for settlement of repos.
It operates neutrally as its status bars it from ta-
king positions and it is subject to supervision by the
CNMV and the Bank of Spain.
It has supervisory and conflict resolution bodies
including the Oversight Committee, the Department
of Supervision and the Arbitrage Committee, whose
functions are defined in Chapter IV of its Regulations.
Its mission is to provide the market with transpa-
rency and security, in cooperation with market mem-
bers and regulators; provide simple access to the mar-
ket via various products such as its terminals and the
SAPI and make the market more efficient and liquid
by concentrating supply and demand positions in a
single system.
Among the platform’s objectives are quick opera-
tions and automatic connection between the various
market members; lower trading costs via the use of
products such as the interactive terminal and SAPI,
without the need for intermediaries, and increase the
range of products and improve the system’s capacities.
D. MARF: Mercado Alternativo
de Renta Fija
The Mercado Alternativo de Renta Fija or MARF
is a complementary and alternative channel for me-
dium and small enterprises, almost exclusively re-
liant on the banking system. The objective of the new
market is to help these enterprises tap the pool of
savings of institutional investors with adjusted costs.
MARF is a Multilateral Trading Facility (MTF)
geared to Institutional Investors. This type of elec-
tronic platform is designed to provide Fixed Income
markets with enhanced transparency and liquidity
and best execution, and in turn, the necessary inves-
tor protection.
The market is managed by AIAF, BME’s Corpora-
te Debt market, and relies on the work of two major
participants: firstly, the Members, which are financial
firms and investment services institutions authorised
to trade on their behalf and on behalf of others. Se-
condly, the Registered Advisers, which are legal per-
sons who advise companies on issuing shares and
help them to deal with the periodic documentation
and information required by the Market.
Those wishing to issue Fixed Income Assets on
this market will benefit from fewer formal require-
ments, quicker procedures and lower issuance costs,
without compromising the reporting obligations that
are necessary to guarantee the confidence of inves-
tors in the securities listed.
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