The Spanish
Securities Market
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STRUCTURE, ORGANISATION AND OPERATION
OF THE SPANISH SECURITIES MARKET
Regulation of the
Spanish securities
market. European MIFID
regulations
Spanish securities markets and financial instru-
ments regulations are heavily influenced by European
legislation following the implementation of the Finan-
cial Instruments Directive (MiFID). The directive was
transposed through two acts: Act 47/2007 involved an
important amendment to the Spanish Securities Market
Act 28/1988 (LMV), while Royal Decree 217/2008 es-
tablished the legal framework applicable to investment
services institutions.
1. TRADING ENVIRONMENT
Pursuant to the LMV, the regulated markets (RM),
Multilateral Trading Systems (MTS) and systematic in-
ternalisers (SI) are all considered as part of the Spanish
trading environment.
Regulated markets (RM).
According to the LMV the-
se are official secondary markets. They are multila-
teral trading systems that allow parties interested in
the purchase and sale of financial instruments to be
brought together to exchange contracts with respect
to financial instruments that have been listed for tra-
ding, and are authorised to do so by law.
Multilateral Trading System (MTS).
These are all tra-
ding systems managed by an investment firms (IF) or
by a governing body of an official secondary market,
that allow parties interested in the purchase and sale
of financial instruments to be brought together to
exchange contracts with respect to financial instru-
ments.
Systematic Internalisers (SI).
These are investment
firms (IF) and credit institutions that execute, through
the regulated market or a multilateral trading system,
for their own account, client orders for shares lis-
ted in regulated markets, in an organised, frequent
and systematic way. IS operations are subject to
compliance with certain requirements related to the
transparency and size of operations.
In a framework where a single security can be
traded in a number of trading centres, information is
highly important. In order to avoid situations prejudi-
cial to clients, the LMV has established, for each of the
trading systems, transparency requirements both before
and after a trade has been executed.
Transparency Regime
Official secondary markets, in order to ensure mar-
ket transparency and price efficiency, are, before a tra-
de, obliged to make publicly available on their systems,
the current bid and offer and the depth of the market at
those prices, of shares that are listed on the markets. In
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