Spanish exchange operator Bolsas y Mercados Españoles (BME) has implemented a reform to the country’s securities settlement system, removing the requirement for the CSD to “have an information system for the supervision of trading, clearing, settlement, and registration of negotiable securities”. The reform aims to harmonise the Spanish market with European standards and prepare the country for T+1 settlement.
The requirement for the information system was previously in place to ensure the “traceability of operations on negotiable securities from trading to their final settlement”. Its removal, which was coordinated by Iberclear, “eliminates the need to simultaneously link the management of the registry with the settlement process”.
The firm states in a press release that the reform is expected to reduce the operational risks and costs associated with post-trade processes; increase efficiency in the settlement of securities; simplify and streamline operational processes; and reduce the volume of failed operations on their theoretical settlement date.
The Spanish market now complies with the European standard of matching criteria, facilitating its interoperability with the rest of Europe. Perhaps most significantly, the reform also prepares Spain for a successful transition to T+1 in 2027.
The change has been described by the firm as the culmination of a decade of post-trade transformations. Says José Manuel Ortiz, ad interim head of securities services at SIX, “The entry into force has been a success and this is reflected in the good settlement efficiency data over the last week.”
