Technology and broader range of available
underlying assets
The overhaul of the SIBE platform and the start-up
of services to improve access to trading platforms
also propped up activity amid tough times for the
economy in 2012.
The World Economic Forum’s The Financial Develop-
ment Report 2012 released in October has Spain ranked
as the ninth most developed financial market of the 62
countries analysed. It was first among euro area coun-
tries and measures up particularly well in the specific
analysis of equity market development, bond market
development and derivatives markets. The financial
markets variables measured show a high degree of
development of these markets in Spain by relative
size, liquidity of platforms and variety of instruments
traded. Much of this can be attributed to the continual
improvements made to the market model over the past
decade and, evidently, technology and service renewal
and upgrades, which favour the trading activity and
quick access by multiple players.
Regarding the latter, 2012 featured a major milestone
in the Spanish stock market. The new SIBE platform
was up and running in April, increasing the system’s
response capacity by ten-fold. SIBE handles trade in
shares, warrants, certificates and ETFs, with extremely
high security standards. This platform, not to mention
the“Co-location”services begun in November, connec-
tion from the London Hub and the new (real-time)
datafeed, make the Spanish market highly competi-
tive and accessible under the best conditions for any
type of investor.
Accordingly, liquidity is also underpinned by the tech-
nology in place. High Frequency Trading (HFT) in securi-
ties markets has made a strong impact on stock markets
as a natural progression in the wake of the widespread
introduction of electronic markets and the increasing
use of computerised trading systems.
The IBEX family grows with new strategy indices
The steady growth of the IBEX index family has also
helped shore up interest for Spanish equities. New refer-
ences have been included, allowing for the issuance of
investment products based on their underlying assets
(e.g. ETFs, warrants, derivatives). This allows portfolio
managers to apply and offer customers exposures that
are more suitable to their investment profiles.
Three new indicators were added in 2012 to the IBEX’s
already large family of stock market indices. The three
fall under the category of strategy indices, a range of
benchmark indicators designed for different invest-
ment strategies based on the daily performance of the
IBEX 35 (underlying index), tracking both positive and
inverse performances and with different coefficients. In
short, where the IBEX 35 represents the behaviour of the
Spanish continuous market, these strategy indices can
achieve double or triple the returns offered by the index
In accordance with the development of market infra-
structure and communications technology, this method
of trading in electronic markets has gained weighting in
the main US and European trading hubs in the last five
years. BME is no exception.
On this front, Group company Visual Trader, whose
results are included in the IT & Consulting business area,
plays a huge role. The individual section on this area
takes a more in-depth look at the activities carried out by
this subsidiary in 2012.
or follow an investment strategy that obtains inverse
returns to that of the underyling index, with leverage
factors of one, two, three and up to five.
Rounding out this range, three new indices were
launched in November 2012: the IBEX 35® TRIPLE
LEVERAGE NET, which offers triple exposure to the
daily return on the IBEX 35® NET RETURN; the IBEX 35®
X5 LEVERAGE NET, which offers quintuple exposure
to the daily return of the IBEX 35® NET RETURN; and
the IBEX 35® X5 SHORT, linked to a quintuple perfor-
mance of the IBEX 35® TOTAL REETURN in the opposite
direction.
These new indices are intended to serve as under-
lying assets for financial products, such as warrants,
certificates, ETFs, providing final investors easy access
to these strategies.
Ibercom listed on the MAB market
35
BME Business Areas
4
Annual
Report 2012
/ BME
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