Positive results and favourable shareholder
remuneration
In 2013, BME focused on reinforcing what we consider our
core mission and reason for being: facilitating transparent
and efficient price discovery that is fair to all participants in
our markets and providing companies with mechanisms
that help them to gain access to financing.
This accounts for the diverse nature of our activities and
our robust operational gearing. Revenues not linked
to trading volume exceed the company’s operating
expenses. The company’s coverage ratio is very positive
and is unmatched in the sector.
The company’s results are very satisfactory, despite the
challenging backdrop. BME made a net profit of €143
million in 2013, 5.7% up on 2012. Full-year revenue
amounted to €307.7 million, up 3.9% year-on-year.
BME has maintained a very solid dividend payout and
this year will submit a 3% increase in shareholder remu-
neration, via the ordinary dividend, to the General
Shareholders’ Meeting; this is the highest in the market
operators sector. This is possible as a result of increasing
the supplementary dividend by 8%.
The market is ready for the new regulatory
framework
Markets will be facing a broader regulatory framework in
the coming months. September marked the fifth anni-
versary of the Lehman Brothers collapse, with the OTC
derivatives market becoming the centre of the financial
crisis and one of the main targets of the reforms to regu-
lations and financial oversight spearheaded by the G20.
BME Clearing to encompass Central Counterparty
activities
In 2013, the trading and clearing activities previously
carried out by MEFF were separate MEFF is now the new
governing company for the derivatives market (Sociedad
Rectora del Mercado de Productos Derivados), with BME
Clearing acting as the central counterparty (CCP).
BME Clearing now channels the transactions in three
activity segments, i.e. Financial Derivatives, Public Debt
Repos and Electricity Derivatives. In future, it will also
encompass the cash products segment (Equities and
Fixed Income), which is being developed as part of the
Reform of Clearing and Settlement in Spain.
REGIS-TR authorised by the European supervisory
authority, ESMA
REGIS-TR, the European derivatives trade repository oper-
ated by Iberclear and Clearstream, began operating in
February this year, having obtained authorisation from
ESMA in November 2013. This is a significant event for the
company, as this simple and efficient service will help our
clients comply with their European reporting obligations.
MAB stocks posted the highest gains and the new SOCIMI
segment is launched
There have been fewer new admissions to trading on
the MAB in 2013 than in years past. In 2013 the Market
consolidated as a source of funds, with significant growth
in volumes. Since MAB was created, the companies listed
on this market have raised more than €218 million of
funds. A new segment for SOCIMIs was opened on MAB
in 2013, with two SOCIMIs now liste
MARF created to provide a new source of funding
Since October, companies now have additional support
through the alternative fixed income market, Mercado
Alternativo de Renta Fija (MARF). MARF is a multilateral
trading facility for Fixed Income targeting institutional
investors. It provides a complementary and alternative
financing channel for Spanish companies that is more
accessible and affordable, and that also affords them
an opportunity to bolster their reputation, visibility and
accessibility to investors.
Fourth largest market in the world by investment flows
Investment flows amounting to $42 billion were chan-
nelled through the Spanish stock exchange in 2013.
This ranks the Spanish exchange fourth in the world and
shows how the market is successfully fulfilling its impor-
tant role as a source of finance for companies.
14
Letter from the Chairman
Annual
Report 2013
BME
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