Major challenges for the coming months
Regulators and supervisors still focused on price
discovery and trading venues
Technology has helped drive the spectacular growth of
securities markets in recent years, with regulation and
supervision focusing heavily on the trading systems,
which provide the basic price discovery function.
Finance to become the focal point in coming years
I doubt it will be long before another key role of markets
-the provision of funding for companies- joins technology,
and the social communication approaches brought about
by this technology, in driving major changes. The crisis
has led to the conviction that excessive leveraging must
come down, that more capital is required and that, in
short, balance sheets in general need to become more
“balanced”. Accordingly, the banking system, in a variety
of ways, offers access to other financing schemes.
The change in the model will come about quickly in secu-
rities markets. The creation of the MAB or the MARF, or
similar alternative instruments in other countries, is a clear
indication of the emergence of new mechanisms, new
ways of financing that must be addresse
Change in finance, technology and communication will
lead to mechanisms in which capital plays a greater role
and debt a less prominent role
The rupture of the excessive weight of bank debt, avail-
able technology and the existing culture of communica-
tion should give rise to new substitution mechanisms, in
which capital plays a greater role and debt a less promi-
nent role, and the use of other assets that can support the
various balance sheet line items.
And as part of what is to come, the securities markets
should play a role, given their independent position and
strong credibility (underscored throughout the crisis).
This role, geared toward financing for companies, will
no longer respond, in a large part, to a classical order in
respect of how it addresses this or of the assets involve
The roles of the various actors in the financial industrymay
begin to shift and become indistinguishable. And regu-
lators and supervisors will surely have an arduous task
delimiting the scope of action and enabling tightly regu-
lated and supervised areas to be compatible with others
that appear and grow in practically virtual areas.
Antonio J. Zoido
The results we are presenting in our 2013 Report are satis-
factory and put BME in a favourable competitive position
to meet the coming challenges. The company is ready to
make the decisions and investment needed to continue
our growth and offer increased value to our shareholders.
Letter from the Chairman
Report 2013
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