The operation needs 50% support from BME’s capital. However, it also depends on the relevant authorizations. The purchase depends, in addition to the green light of the Spanish Competition Authorities, the approval of the Spanish market regulator CNMV.
BME ‘s income for 2018 fell -0.5% to 78.8 million euros while operating costs grew +7.2% to 30.5 million euros. Moreover, in order to confront the competition from alternative platforms, BME will reduce tariffs to attract volume. It will lower the charge on the most liquid shares from 0.30 to 0.25 bp for intermediaries who meet a series of requirements and fix the charge for shares with a floating capital between 3/10 billion euros at 0.60 bp.
According to a report by the Study Services of BME on the ownership of shares, foreign investor participation on Spain’s stock market reached 46% at the close of 2017, the highest level in the historical series, with an increase of 3% over the course of the year, 9% in the decade, and 16% since 1992.
Bolsas y Mercados (BME) has published a report giving details of stock market trading activity in December, as well as a figure for 2017 as a whole. Some €651.466 million were traded in equities during last year, in line with the amount negotiated in 2016.
BME announced yesterday that it will adapt its fixed income market so that intermediaries can transfer all their operations to the regulated market and comply with the new transparency and reporting requirements of MiFID II.
Foreign investors have increased their leadership in terms of how many shares they own in Spanish listed companies. They held 43.1% of the total at end-2016.
“The stock market’s relevance and its trading volumes increase to the extent there is a good derivatives market, given that this helps neutralise part of the risk of exposure to the stocks. In this sense, multiple products help to deepen the market.”
UBS | Cash equity volumes were down sharply in August on a YoY and MoM basis across all the European exchanges we cover, driven by the typical seasonal summer slowdown. The August average daily volumes (ADVs) marked a 2 -year low for DB1 & LSE, a 3 -year low for Borsa Italiana and Euronext and a 14 -year low at BME . August ADVs were down 55% YoY for BME, 40- 44% for DB1, Euronext & Borsa Italiana and 24% for LSE.
At end-2015, Spanish banks and savings banks had barely a quarter of the holding in Spanish companies’ shares it had in 1992, the first year in the historical series elaborated by BME’s Rearch Department. The current share of 3.6% is 12 percentage points lower than that in 1992 and 5.8 percentage points below the level in 2007, at the start of the global financial crisis.
A good dozen Spanish small and midcap listed companies have presented their projects to big institutional investors on different days in New York and Chicago. The event was organised by Spain’s Bolsas y Mercados Espanoles (BME), broker JB Capital Markets and its US partner Auerbach Grayson.