Syndicate
Spanish Stock Markets Features
There are four stock markets in Spain (Madrid, Barcelona, Bilbao and Valencia). Spanish stock markets are regulated by the Stock Market National Commission that is a public rights entity with its own legal personality. Its basic functions are the following:
- Direct the stock market system
- Authorize the admission of securities to be quoted
- Control and supervise the markets and the institutions that are part of it
- Inspect the markets and sanction when required
Look after the investors protection and clarity. In that sense, it must control that no one has an insiders trading information.
Members of the SNMC?s administration council are basically named by the Ministry of Economy (Department of Treasury). Therefore, the SNMC depends on the government. This council is advised by a denominated Consulting Commission in which stock members also participate, as well as investors, issuers and Autonomous Communities that count with a stock market (Catalu?a, Madrid, Vasque Country and Valencian Community).
Organizational Chart of the Spanish stock market system
- Government
- Ministry of Treasury
- Stock Market National Commission
- Supervising Societies of Stock Markets
Stock Markets
The members of each market (that could be the stock or debentures market societies or agencies, and individual members that have the same ability as the debentures agencies that come from previous exchange and stock agents) are stockholders from the management societies of the corresponding stock markets that have a legal figure of an anonymous society. These are the only members that contract in the market.
The Administration Council from the stock market management society rules that stock market and its basic functions are:
- organize contracting sessions
- publish prices
- organize the liquidations of stock market operations
Admission of titles to be quoted, in cooperation with the Stock Markets National Commission.
In Spain there are many types of markets, according to the contract; among which the following feature:
“Corros” market: traditional markets that exist in every of the four stock markets. In these, contracts are made orally (loud and sound) for those securities that have a fixed income as well as variable.
Continuous market: since 1989 an important part of the stock, bonds and debentures are quoted in this market. As a matter of fact, currently, the continuous market represents more than 95% of the securities trade. It is a market that works through a computing connection of the four stock markets under the so called Spanish Stock Market Interconnection System (SSMIS).