New BME Projects in 2012
Throughout 2012, BME continued to pay special attention
to the needs of its customers and users of financial markets
so that it can offer the right products and services. This is
even more important, if possible, considering Spain’s
drawn out economic crisis.
Among the things users of equity markets demanded
most were faster trading speed, shorter response times
and capacity to process increasing orders. To meet these
demands a new trading system was put in place in April.
SIBE’s technology platform was upgraded to, inter alia,
improve transaction latency, which was reduced by more
than ten-fold while security levels in the Spanish market
were maintained.
In addition to the technological upgrade, BME undertook
other projects and developed other user services in 2012.
For instance, BME Market Data expanded the range of
services it offers market users further. In April, it increased
the information it provides on Spanish securities markets
to include data on securities lending, market credit, his-
toric series, etc. In the third quarter, the company started
up an online consultancy service, “e-Data services”, of-
fering subscribers access to all daily and historical data,
as well as information on BME’s fixed income markets.
In line with BME’s commitment to providing users with
any means possible to help them develop their activity
and in light of the future regulatory changes that will
require financial and non-financial institutions alike to
increase liquidity and improve the management of the
collateral required from their funding or risk hedging op-
erations, in May, Iberclear and Clearstream, the interna-
tional central securities depository, announced an agree-
ment to develop a collateral management service for the
Spanish market starting in 2013.
The derivatives markets featured two major develop-
ments in the year: the extension of trading hours on
IBEX35® futures on 21 May, and the admission and reg-
istration of futures contracts on the Spanish 10-year gov-
ernment notional bond from 29 May, which lends an el-
ement of portfolio hedging to the maturity of divergent
and volatile sovereign debt.
In July, the OTC derivatives registry, OTC REGIS-TR, an-
nounced that it had reached an agreement with the glob-
al financial messaging service provider, global SWIFT,
to help its customers deal with the upcoming regulatory
changes in the European derivatives industry, implying
significant advantages in terms of efficiency and security
for REGIS-TR users and facilitating compliance with the
new European regulation.
In October, BME Innova, in conjunction with Anadat Con-
sulting, one of the leaders in virtualisation integration in
Spain, launched BME InCloud, a cloud computing service
tailored to the needs of small- and medium-sized enter-
prises (SMEs).
On 12 November, BME launched a
co-location
service, of-
fering a high-performance facilities where market mem-
bers may house their automatic trading systems. The aim
of the service is to improve the speed of access to the
Spanish market, thereby enhancing liquidity and price
formation. In the same vein, an agreement was reached
with Interxion, Europe’s leader in CPD services, to pro-
vide remote access to BME’s
co-location
service from the
London CPD. This will afford market participants wanting
remote access from London lower communication costs
and significantly lower latency in the London-Madrid
connection.
In November, the number of IBEX 35® indices was ex-
panded with the creation of three new tradable indices:
IBEX 35® Triple Apalancado Neto, IBEX 35® X5 Apalanca-
do Neto and IBEX 35® Inverso X5.
Also in November, through its BME Innova subsidiary,
BME launched Treasury and Financial Management Solu-
tions, specifically designed to meet the needs of Public
Administrations so as to provide treasury departments,
auditors and secretaries of different administrations with
appropriate tools to achieve the most efficient financial
management possible.
On the international front, another highlight of 2012 was
the award to BME, through BME Innova, of the tender
held by the Inter-American Development Bank (IDB) to
conduct a study on“The development of stock exchange
instruments for SME funding” in Latin America, with the
objective of finding a private finance alternative for SMEs
through securities markets, in this case, with the col-
laboration of AFI, the public call from Algeria’s Treasury
Department to create and develop a public debt trading
platform for the market as part of the Debt Conversion in
Public Investment programme in Algeria.
27
BME meets user needs
Corporate and Social
Responsibility
Report 2012
/ BME
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