Technology and a wider range of available
underlying assets
As noted, trading volumes were also buoyed by new
services such as the co-location service rolled out in
November 2012, which enables user members to install
their automated trading systems just a few metres away
from the Data Processing Centre, thereby speeding up
their market access; this in turn favours liquidity and
price formation. The connection from the London Hub
and the new (real-time) data feed have also helped make
the Spanish market highly competitive and accessible on
optimal terms by all classes of investors.
Nowadays it is crystal clear that technology props up
liquidity. On this point it is worth noting that the vast
majority of today’s securities markets are electronic
exchanges and high frequency trading is just another
step in the market’s natural evolution.
The IBEX® product family continues to grow
adding new strategic indices to the fold
Interest in Spanish equities has also been fuelled by the
continual expansion of the IBEX® index family. A new
line of IBEX 35® Target Volatility indices was launched
in September 2013 with eight new products designed
to enable the issuance of investment products with
embedded index underlyings (ETFs, warrants, deriv-
atives, etc.), helping portfolio managers to offer their
clients a broad range of investment strategies tailored to
their investment profiles.
The eight new indicators added to the IBEX® family
of stock indices are designed to cap risk exposure to
the IBEX 35® index within predefined thresholds. The
strategy consists of combining an investment in equities
with an investment in risk-free fixed income securities
ETFs, warrants and certificates
BME’s efforts to continue evolving and adapting to
economic conditions is reflected very positively in the
ETF market segment, with increasing trading levels and
assets under management.
In 2013, the volume of ETFs listed on the Spanish stock
market stood at 68, and at 31 December had moved, in
aggregate, €4.284 billion, 56.6% more than the same
period the previous year. The real trading star was the
ETF category benchmarked to the IBEX indices, which
represented 91% of total trading in the market. These
ETFs exceeded one billion euros being indexed to the
performance of the indicator for the first time, increasing
by 248% in the year. ETFs are a highly efficient vehicle
for major institutional investors to invest in Spain. And
private investors are increasingly looking to this product
as they build their portfolios.
Unlike the ETF segment, the warrants market was
lethargic, although the number of new references
included in the market has increase Even so, this market
shrank compared to 2012, due mainly to the significant
decrease in trading of Bonus Cap, Warrants and Turbo
Warrants, which have been directly impacted by lower
market volatility and, in some cases, by their tax treat-
ment. Over the year as a whole, €754 million of warrants
and certificates were traded over BME systems.
and of varying the investment mix depending on trends
in market volatility. These new indices were devised to
provide underlyings for financial products and to provide
investors with a wide range of investment strategies.
The new ETFs minisite is the answer to the growing demand for information on this product.
39
Business Areas
Annual
Report 2013
BME
1...,29,30,31,32,33,34,35,36,37,38 40,41,42,43,44,45,46,47,48,49,...236