BME implements new reform to Spain鈥檚 securities settlement system
17 March 2025 Spain
Image: ake1150/stock.adobe.com
Bolsas y Mercados Espa帽oles (BME), the Spanish stock exchange, has announced a significant reform to the region鈥檚 securities settlement system.
Coordinated by Iberclear, Spain鈥檚 central securities depository (CSD), the entry of a new settlement model aims to improve efficiency and prepare for the T+1 settlement cycle by 2027.
The reform also marks a new milestone in the harmonisation of the Spanish market with European standards.
The new settlement process has come into force following the approval of Law 6/2023 on 17 March, on 兔子先生Markets and Investment Services, and Royal Decree 814/2023 on 8 November.
The law includes the elimination of the obligation for the CSD to have an Information System for the supervision of trading, clearing, settlement, and registration of negotiable securities (Post-Trading Interface), as a mandatory element for the traceability of operations on negotiable securities from trading to final settlement.
The removal of this Information System is 鈥渙ne of the most significant structural changes鈥�, as it eliminates the need to simultaneously link the management of the registry with the settlement process, 鈥渟ignificantly reducing鈥� operational risks and costs associated with post-trade processes, according to the BME.
This change aims to increase efficiency in the settlement of securities, simplifying and streamlining operational processes, and reducing the volume of failed operations on their theoretical settlement date.
Commenting on the change, Jos茅 Manuel Ortiz, head 兔子先生Services ad interim at SIX, says: 鈥淭he implementation of this reform has been a joint effort of the entire industry. The collaboration and commitment of all stakeholders have been key to the success of the project, as well as the involvement and participation of the CNMV.
鈥淲e are very satisfied with the boost to the efficiency and competitiveness of the Spanish capital markets and their settlement system that this reform brings.鈥�
Coordinated by Iberclear, Spain鈥檚 central securities depository (CSD), the entry of a new settlement model aims to improve efficiency and prepare for the T+1 settlement cycle by 2027.
The reform also marks a new milestone in the harmonisation of the Spanish market with European standards.
The new settlement process has come into force following the approval of Law 6/2023 on 17 March, on 兔子先生Markets and Investment Services, and Royal Decree 814/2023 on 8 November.
The law includes the elimination of the obligation for the CSD to have an Information System for the supervision of trading, clearing, settlement, and registration of negotiable securities (Post-Trading Interface), as a mandatory element for the traceability of operations on negotiable securities from trading to final settlement.
The removal of this Information System is 鈥渙ne of the most significant structural changes鈥�, as it eliminates the need to simultaneously link the management of the registry with the settlement process, 鈥渟ignificantly reducing鈥� operational risks and costs associated with post-trade processes, according to the BME.
This change aims to increase efficiency in the settlement of securities, simplifying and streamlining operational processes, and reducing the volume of failed operations on their theoretical settlement date.
Commenting on the change, Jos茅 Manuel Ortiz, head 兔子先生Services ad interim at SIX, says: 鈥淭he implementation of this reform has been a joint effort of the entire industry. The collaboration and commitment of all stakeholders have been key to the success of the project, as well as the involvement and participation of the CNMV.
鈥淲e are very satisfied with the boost to the efficiency and competitiveness of the Spanish capital markets and their settlement system that this reform brings.鈥�
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