Options and Futures:
MEFF
4
47
STRUCTURE ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
The MEFF S/MART system guarantees the securi-
ty of operations and supervision of the market. It has
its own front-office and back office to facilitate trading
and decision-taking.
MEFF Technology has been established in other
financial markets such as MEXDER in Mexico, WTB in
Hanover, Germany, and the Colombian Central Clea-
ring House.
MARKET ACCESS
Direct access to the market is reserved for MEFF
members. Clients, whether individuals or entities,
who buy and sell contracts access the market via
members. Some members who fulfil certain require-
ments can carry out own account operations or opera-
te as market makers for some of the traded products.
The following members participate in MEFF: Tra-
ding Member, whose job is to transfer buy and sell
orders to the market for its own account or that of its
clients; Settlement Member responsible for daily sett-
lement of operations it performs or those performed
by other Trading Members; and Custodian Clearing
Member, who as well as daily trading and settlement
isresponsible for handling guarantees.
At the beginning of 2004, a new figure was crea-
ted: Own Account Trading Members (OATM). The
main purpose of this figure is to generate liquidity in
Spain’s derivatives market. The OATM are entities that
do not need to be investment service companies or
credit institutions, and can only operate for their own
account and generally have low equity. The OATMs
tend to occupy leading positions in world deriva-
tives markets by trading and are one of the engines
of market liquidity. The spread of electronic markets
has enabled firms to be created which access from the
same point as many markets as they want.
EQUITY DERIVATIVES
Futures contracts
• Futures on the IBEX 35 index: Futures contracts
whose underlying is the IBEX 35 index. Since Ja-
nuary 4, 1999, as a result of the launch of the Euro,
the contract’s value consists of multiplying the IBEX
35 index by €10 (i.e. each price point is €10). Prices
are expressed in IBEX-35 points. Contracts are cash
settled. As well as contracts with standard traded
maturities, contracts are admitted with maturities at
non-standard dates.
• Mini futures on the Ibex-35 index: Launched on No-
vember 22, 2001, they are futures contracts whose
underlying is also the IBEX 35 index but the mul-
tiplier is €1 (i.e. each price point is €1). Prices are
expressed in IBEX 35 points. The contracts are cash
settled.
• FuturesIBEX 35 IMPACT Div.:Futures contracts
whose underlying is the IBEX 35 Impact Div.
index.,which accumulates the dividends paid by
companies comprising the IBEX 35 over a year. The
contract’s value consists of multiplying the IBEX 35
Impact Div. index by €10. Prices are expressed in
the points of the underlying index. Contracts are
cash settled.
• Futures on shares traded on the Spanish stock ex-
changes: Futures contracts on the shares of the main
listed companies are traded on the Spanish stock ex-
changes (SIBE), including all those in the IBEX 35.
A futures contract on shares has an underlying of
100 shares of the value that corresponds (the num-
ber of shares can be adjusted as a result of corporate
actions). The price is in Euros per share with two
decimals. Two types of contracts are arranged: with
settlement on delivery and in cash. As well as con-
tracts with standard traded maturities, contracts are
admitted with maturities at non-standard dates (both
types of settlement).
1...,37,38,39,40,41,42,43,44,45,46 48,49,50,51,52,53,54,55,56,57,...83