IT & Consulting
The activities encompassed in this BME business area
are the most diversified in the company and are not only
aimed at entities and financial institutions, but also at
other types of companies and at public administrations.
The success of these businesses is underpinned by BME’s
technological knowhow. This unit, which raises revenue
from various products and managed services, is the
company’s youngest division. In 2012 the performance
of its operating figures was slightly negative although
its contribution to the Group’s total business volume and
profits increased slightly in the year, to reach a weighting
of 5.9% and 2.9%, respectively.
Its work revolves around various differentiated fields of
activity managed by two companies: Visual Trader and
BME Innova.
Combined revenues from IT & Consulting activities totaled
€16.33 million in 2012 (up -2.3%). Operating costs fell by
1.4% to €10.37 million. Finally, EBITDA dropped by 3.8%
to €5.96 million.
IT & Consulting. Key figures...
2012
2011
%
...For the Business
Revenue (million euros)
16,333 16,712
-2.3
Expenses (million euros)
-10,370 -10,512
-1.4
EBITDA (million euros)
5,963
6,200
-3.8
Visual Trader: value added services for channeling
andmanagingmarket orders
In 2012 Visual Trader Systems consolidated its leadership
position in the channeling and management of orders in
Spain, registering 25% growth in the number of trading
terminals installed. This terminal allows traders to operate
in national Equity, Fixed income, and Derivative markets,
in addition to over 50 international markets. Neverthe-
less, the effect that the regulatory environment has had
on activity levels has affected the performance of post-
trading support services. The number of orders handled
by theVT Systemduring 2012was 26% lower than in 2011,
in line with the general decline inmarket trading volumes.
This effect was partially offset by the 26% year-on-year
increase in maX terminals installed during the year.
The Visual Trader team works tirelessly to reduce as much
as possible the access times to market, with the aim of
satisfying the growing demand for greater speed from
High Frequency Traders. These efforts garnered fruit in
April, with the launch of a new technology that allowed
members to control and filter orders directed to the
market through an algorithmwith a latency of less than 70
nanoseconds. In another development, the company has
also adopted a new protocol that will be integrated into
all the company’s products, and that is based on Google
technology to optimise the consumption of bandwidth in
real-time communications.
In the second half of the year, investments were made to
expand the risk control systems in all the applications and
to improve the Best Execution, by routing orders using
algorithms that allow access to markets that simultane-
ously trade the same assets and automatically directing
these orders towards markets that offer the best prices.
These developments are already operative and we expect
to see more demand in 2013.
Revenues from the Proximity service, launched three and
a half years ago, have grown 60%, as a result of the incor-
poration of new entities.
In November, the Co-location service was launched. This
service offers space in BME’s Data Processing Centre for
members to site their tradingapplications and reduce their
access times to market even more. These two services are
complementary and complete BME’s offerings in this area,
while providing enhanced liquidity to the Spanish market.
BME Innova: technological solutions for the busi-
ness community
In 2012, BME Innova has stepped up its diversification
activity, concentrating on offering services of a high tech-
nological standard andmaking the best use of BME’s avail-
able resources to bolster the Spanish business community,
and especially SME’s competitiveness.
BME Innova’s product strategy continues to be based
on providing companies access to BME’s technological
capacity, and especially its experience in the secure and
confidential management of large volumes of highly
sensitive information, complemented by its knowledge of
tools to help ensure Regulatory Compliance.
This strategy of generating products continues to be
supported by the BME Innova’s business association with
Spanish SMEs that complement BME’s knowledge of
sectors outside of the financial sector, which has been the
main focus of the company’s activity.
In 2012, in the area of services against market abuse, the
company responded to the implications of the directives
published by ESMA, the Systems and Controls applied
by the trading platform, the investment services compa-
nies, and the competent authorities in an environment
of automated trading with SICAM’s Phase II, Integrated
Service Against Market Abuse. Furthermore, it initiated
the internationalisation of this service in financial entities
in Portugal. In addition, the service relating to Regula-
tory Reporting to the CNMV has been expanded with the
development of circulars 5/2011 of the CNMV, regarding
the solvency and confidential information of investment
services companies and circular 7/2011 of the CNMV, on
informative brochures on fees and contract types.
Lastly, on the internationalisation front, in 2012, BME
Innova, through its BME Consulting unit, carried out a
study for the Inter-American Development Bank (IDB) on
improving access of SMEs to funding via stock markets.
This project included an analysis of the opportunities
existing for the development of Alternative Markets (for
SMEs) in three countries in the region: Chile, Peru and
Jamaica. The results obtained will serve as a road map
for the implantation of other markets that create new
financing sources for SMEs.
51
BME Business Areas
4
Annual
Report 2012
/ BME
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