New rules for Spanish securities trading venues

Automatic summary, not yet reviewed

1. Regulated markets need authorization from the CNMVCNMV Comisión Nacional del Mercado de Valores, the Spanish public agency that supervises securities markets. to start operating. If the CNMV does not rule within six months, the request is deemed denied.
2. Regulated markets must meet organization and operation requirements: managing conflicts of interest, having resilient trading systems, controlling algorithmic trading, setting transparent fees and managing volatility, among others.
3. The figure of the organized trading system (SOC) is created, alongside regulated markets and multilateral trading systems. All of them need prior CNMV authorization and at least three active members or users.
4. Regulated markets may suspend or exclude from trading instruments that break their rules, and the CNMV may also suspend or exclude them in certain cases, such as the issuer's liquidation.
5. A sanction regime is established with very serious and serious offenses. Maximum fines are 5 million euros or 10% of annual turnover for very serious offenses, and 2.5 million euros or 5% for serious ones.
6. The rule enters into force on January 3, 2018 to adapt Spanish law to European securities market rules. Existing markets are automatically deemed authorized.

Who it affects

• Spanish regulated markets, such as the stock exchanges: They must obtain or are automatically granted authorization and must meet new organization and operation requirements.
• Managers of multilateral trading systems and organized trading systems: They need CNMV authorization and must follow specific rules.
• Investment services firms: They must meet technical requirements if they do algorithmic trading or provide direct electronic access, and can be sanctioned.
• CNMV: It is the authority that authorizes, supervises and sanctions.
• Issuers of financial instruments: Their instruments may be suspended or excluded from trading.

Words worth knowing

Mercado regulado (regulated market)

An official market where financial instruments are bought and sold, such as a stock exchange.

Sistema multilateral de negociación (multilateral trading system)

An alternative to the stock exchange where several participants trade financial instruments under their own rules.

Sistema organizado de contratación (organized trading system)

A more flexible trading system than the multilateral one, where its operator has more discretion over which orders are matched.

Negociación algorítmica (algorithmic trading)

Trading financial instruments through computer programs that generate orders automatically.

CNMV

Comisión Nacional del Mercado de Valores, the Spanish public agency that supervises securities markets.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries