Growth in equity trading volumes
Trading volumes in Spanish equities firmed as the year
progressed last year to end 2013 at €704.52 billion by
value, year-on-year growth of 0.7%.
The turnaround became tangible during the second half
of the year and peaked in October, when trading volumes
topped year-earlier levels by 30%, marking the highest
monthly trading volumes in 27 months. The sea-change
in volumes is all the more encouraging as it was accom-
panied by significant growth in liquidity, underpinned
by market positions and growth in the number of trades
and orders.
The improvement observed throughout the year in
bid-ask spreads (which narrowed by 4.8 basis points on
average for IBEX 35® stocks) translated into savings in
terms of the cost of trading in Spanish equities that can
be quantified at over €300 million.
The other piece of good news for trading volumes came
in early 2013 when the regulator lifted the ban on short
positions in Spanish stocks. Nevertheless, threats to the
sustained recovery in the volume of trades channelled
through the regulated securities exchanges linger,
such as the agreement among 11 EU member states
(including Spain) to charge a levy on financial transac-
tions and ongoing attempts to curtail high-frequency
trading.
The most heavily traded stocks in the eurozone
In 2013, the shares of six companies listed on the
Spanish stock exchange and forming part of the EuroS-
toxx 50 accounted for 20% of this index’s total trading
volumes during the year. This percentage is higher
than these stocks’ aggregate weighting in the index
(12.38%), not to mention higher than the Spanish econ-
omy’s weighting in the eurozone in terms of GDP.
Banco Santander, BBVA and Telefónica were the first,
second and third most heavily traded stocks in the
Eurostoxx 50 in 2013, in that order. Inditex was the
9th most traded stock, as in 2012, while Iberdrola and
Repsol ranked 20th and 21st, respectively. These stocks’
performance within the Eurostoxx 50 evidences inves-
tors’ continued interest in blue chip Spanish stocks.
Deep liquidity
Despite ongoing intensification in competition from
international trading platforms, the Spanish stock market
continued to account for nearly 90% of overall trading in
Spanish BME-listed shares, bolstering transparency and
efficient price formation in a self-fulfilling process.
The access services, such as the co-location services,
rolled out to accommodate more advanced automated
trading systems, coupled with the encouragement of
more flexible market players with greater scope for
involvement such as the new Non-Clearing Members,
helped provide a deeper market for share trading while
guaranteeing quality standards and market alternatives.
Extending the upward trend of recent years, the number
of trades executed in 2013 rose by 8 million (19.7%) to
48.54 million. A new record was marked in October,
when BME crossed 6.4 million trades, smashing the prior
record of 4.7 million trades hit in May 2012. The number
of orders processed by the Spanish stock exchange
soared from nearly 100 million five years ago to 288
million in 2013.
Business drivers: Highly Liquid Market
Spanish Blue-chips are the most liquid stocks in the EMU
Source: Bloomberg. (1) As of 31/12/13
RK
Company
FY13
Turnover (€ Billion)
Daily avg. FY13
Turnover (€ Billion)
%
Relative weight at
EuroStoxx50
1
1
140.8
0.55
3.760%
2
115.8
0.45
2.650%
3
113.1
0.44
1.430%
4
109.7
0.44
2.550%
5
85.9
0.34
1.940%
6
84.0
0.33
5.080%
7
82.4
0.33
2.570%
8
79.7
0.31
4.170%
9
74.2
0.29
3.660%
10
74.1
0.29
2.910%
19
56.9
0.22
1.350%
26
47.0
0.18
1.220%
27
46.4
0.18
0.830%
Business Areas
Annual
Report 2013
BME
37
1...,27,28,29,30,31,32,33,34,35,36 38,39,40,41,42,43,44,45,46,47,...236