The Spanish stock market includes fixed and variable yield securities and also includes options and futures. Most local companies take part in trading, although foreign companies are also listed. Spanish finance and its management system is based on the Anglo-Saxon option.
Spanish finance: how securities transactions are regulatedе
The Spanish stock market focuses on small investors and the protection of their rights. An electronic system is used, and any use of privileged information is subject to penalties.
For transactions there is no need to involve official certifiers, their legality and compliance with the rules is monitored by the state commission – CNMV. It controls the work of the securities market, checks the companies that are represented on the site.
In addition, the functions of the agency include:
- pricing monitoring and process transparency assurance;
- investor protection.
The CNMV processes are regulated by companies whose securities are publicly offered, secondary stock markets, as well as by organizations working in the investment field.
The repayment period of trading operations is not more than 3 days, credit options are allowed.
To improve the work of traders, effective hedging mechanisms have been introduced, as well as the system of using government offers and selling shares has been improved.
A Royal Decree was issued in 2003 in order to expand the activities of small investors and to control public offerings aimed at the purchase of securities. Its clauses provide an opportunity to improve the efficiency of activities on the stock exchange and the trading system.
In 2002, the Spanish financial system and stock exchanges were modernized. All of them merged into a B.M.E. company. This included the trading floors of Bilbao, Barcelona, Madrid and Valencia. This step helped to create a single network for all financial markets in order to expand opportunities at the global level.
In addition, the Spanish authorities clearly monitor the transparency of transactions with foreign companies to rule out the phenomenon of capital laundering. To this end, legal regulations and a clear algorithm for financial transactions have been introduced.
Changes in preferred shares were also touched upon. Now only resident companies from Spain or EU countries are allowed to issue them. The issuer must submit the activity data to the tax authority. Preferred shares themselves must be listed on secondary markets. They are not required to have an expiration date limit. At the same time, the possibility of early redemption is allowed in 5 years after purchase, for which permission must be obtained from the Bank of Spain.
These and other rules for operations with securities allow to speak about transparency of the market and protection of its participants.