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Letter from the Chairman


Annual Report 2014 BME

Dear Shareholder:

As Chairman of the Board of Bolsas y Mercados

Españoles (BME), I am pleased to present our 2014

Management Report and Consolidated Financial


For Spain, 2014 saw certain economic progress and

achievements in the stock market. The various indica-

tors have confirmed that Spain is no longer in reces-

sion and is on our way to recovery while the equity

market set records in several areas of activity.

Against this complicated backdrop, and with

concerns over the future, Spain has managed to

maintain a trend which it had already begun in 2013.

The government’s willingness, and that of the vast

majority of citizens, to implement reforms has helped

the country to be on a relatively better position

compared to the rest of Europe. However, we cannot

be complacent; there are still clouds on the horizon.

A positive year for the Spanish equity markets

It has been a year of two halves, as we saw in 2013.

The first half was very strong with the IBEX 35 reaching

its best levels in 11 years. The second half though was

somewhat weaker with recession threatening those

countries which had previously seemed immune;

persistent problems in others; and the emergence of

geopolitical conflicts on the international stage.

Highest capitalisation for five years

The Spanish exchange closed 2014 once again as one

of the strongest in the world, with a capitalisation of

€1.1 trillion, 1.34% higher than 2013. And it features

some of Europe’s most liquid companies: namely

Santander, BBVA, Telefónica, Repsol, Iberdrola and


Record number of trades

The figures are certainly optimistic: 71 million trades

were executed, a 46% increase on 2013. This is

a record high and 1.5 times more than in 2008. In

October alone, the Spanish exchange recorded

8.6 million trades, an unprecedented figure for just

one month. Trading volume to December was €884

billion, a 26% improvement on 2013, while the leading

European exchanges only saw a 17% improvement

on average.

Stronger Fixed Income markets

This year we have seen investment flows moving

from Fixed Income to Equities. We believe this is very

positive for Spanish companies as they pursue finan-

cial equilibrium with more equity, something which is

extremely important for Spanish business.

Trading in the Corporate Debt market stood at €1.1

trillion for 2014. This is down 14.5% on the previous

year, although trading-to-maturity volumes have

risen 42.3%.

IBEX 35 derivatives growth

The Derivatives market saw the number of contracts

increase by 3% year-on-year to 56 million. Activity in

the warrants and certificates segment totalled €819

million, up 8%.

2014 was a good year for IBEX-indexed products,

with futures contracts increasing 24% and options

contracts rising 42%. However, and as we have

seen in other European markets, single stock deriv-

atives declined, with Futures down 8% and Options

decreasing 6%.

Antonio Zoido, BME Chairman & CEO