Dear Shareholder,
As Chairman of the Board of Bolsas y Mercados Españoles
(BME), I am pleased to present our 2013 Management
Report and Consolidated Financial Statements.
Macroeconomic and stock-market background
Spain is no longer the riskiest country and the interna-
tional pressure that sent the Spanish stock market and
the share prices of many Spanish companies tumbling
has subside Foreign investors are again looking at and
investing in our market, and in a big way. Foreign direct
investment has double And October last year was the best
month ever for the exchange trading.
But 2013 was not trouble-free. The situation in the first
half of 2013 was tense. There was even a possibility that
the Spanish economy would need to be bailed out.
Lacklustre economic data, rampant unemployment and
excessive debt eroded the markets’ confidence in Spain.
In the second half, however, Spanish, as well as European,
economic indicators turned less negative and the situa-
tion began reversing. Government reforms and interna-
tional agreements have helped keep the situation from
weakening further. But the main problems still remain.
Spain’s debt remains high and there is still little activity in
credit markets. Companies should tap capital markets for
finance. To continue making inroads and help steer the
economy towards recovery, work must continue to create
a newmodel that is less dependent on leverage and offers
access to funding through various channels.
Markets play a crucial role in this process and can provide
the response to today’s needs. Activity in regulated
markets has proven to be efficient, transparent and
secure, even with the economy struggling.
2013: the best year for the stock market since 2009 with
activity increasing
The IBEX 35 rose by 21% in 2013. This is the best result
since 2009. And improved prices were buttressed by
trading volumes. Trading nudged €704 billion, slightly
above the total for 2012. The 15% increase in the number
of trades carried out in the period, to 44.3 million, is
particularly noteworthy.
Turning to the Derivatives Market, although the volume
of contracts traded fell by 18.5% on 2012, volumes in
certain products increase For example, in IBEX 35 Futures
and Options volumes were up by 17.6% and 23%,
Trading in the Corporate Debt market totalled €1.28
trillion, 49% less than in 2012. However, the inclusion of
Public Debt in the SEND Fixed-Income platform for retail
investors has caused trading on this platform to more
than double (121%).
Spanish stocks among the most liquid in Europe
The quality of trading in Spanish securities is gaining
wider recognition internationally. Santander, Telefónica
and BBVA were the most liquid stocks on the Euro Stoxx
50 in 2013.
Letter from the Chairman
Report 2013
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