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What it is

How Spain's securities markets are organized and supervised

BOE step 7 of 7 · Passed

It is a government bill. Introduced by the Government. It was introduced on 23 February 1988. Introduced by: GOBIERNO.

Official title: Government bill on the Securities Market.

Follow this law

Source: Congreso de los Diputados, file 121/000074· updated 11 Nov

Automatic summary, not yet reviewed

  1. The law regulates primary and secondary securities markets: it sets their principles of organization and operation, the rules for everyone involved in them, and their supervision system.
  2. It creates the National Securities Market Commission (Comisión Nacional del Mercado de Valores), a public entity with its own legal personality that supervises and inspects the markets, sanctions violations, watches over transparency and correct price formation, and protects investors.
  3. Negotiable securities can be represented through book entries (a computerized accounting record) or through physical certificates. Transfers are made by accounting entry, and whoever appears in the register is presumed to be the legitimate owner.
  4. Issuing securities does not require prior administrative authorization, but there are requirements to protect investors: notifying the project to the Commission, registering an information brochure, and having an audit of the issuer's financial statements.
  5. The official secondary markets are the Stock Exchanges, the Book-Entry Public Debt Market, and others the Government may create. The Exchanges are run by corporations whose only shareholders are their members, and a computerized interconnection system is created.
  6. Securities market activities are reserved for Securities Companies and Agencies, which replace the individual broker. Securities Companies may trade for their own account and for others; Agencies only for others.
  7. Anyone seeking a significant stake in a listed company must first launch a public tender offer to all shareholders; without it, they cannot exercise the political rights of those shares.
  8. It sets rules of conduct (absolute priority to the client's interest and a ban on using insider information) and a system of minor, serious and very serious violations with fines, suspensions and revocation of authorizations.

Who it affects

  • Individual investors: They get more protection: information brochures, public audits, conduct rules for firms, and a supervisor looking after their interests.
  • Companies issuing securities: They must notify their issues to the Commission, register brochures, audit their accounts, and immediately publish any fact affecting the price.
  • Firms operating on the stock exchange: Trading is reserved for Securities Companies and Agencies; banks and savings banks may only do some activities, never exchange trading.
  • Stock exchange agents (Agentes de Cambio y Bolsa): Their guilds are dissolved and they must join a Securities Company or Agency or become notarial brokers (Corredores de Comercio Colegiados).
  • The public administration: The National Securities Market Commission is created, concentrating supervision, inspection and sanctioning of the market.

Words worth knowing

Anotaciones en cuenta (book entries)
A way of representing securities through an entry in an accounting record instead of a physical certificate.
Primary and secondary market
The primary market is where securities are issued for the first time; the secondary market is where they are later bought and sold among investors.
Oferta pública de adquisición (public tender offer)
An offer addressed to all shareholders of a company to buy their shares when someone wants to reach a significant stake.
Información privilegiada (insider information)
Specific, non-public information that, if made public, would significantly affect a security's price. Trading on it is prohibited.
Folleto informativo (information brochure)
A document with the information an investor needs to make an informed judgment about the proposed investment.

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

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced23 February 1988Someone registers the text in the Congreso.
  2. Admitted1 March 1988The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendmentsno dateGroups propose changes.
  4. Committeeno dateA committee goes through the text in detail.
  5. Plenaryno dateAll 350 deputies vote.
  6. Senateno dateThe Senate can pass it, amend it or veto it.
  7. BOEno dateIt is published in the Official State Gazette (BOE) and comes into force.
See the 2 official steps on a timeline
Feb 198811. 23 February 1988: Presentación22. 1 March 1988: Calificación

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

Published in the BOE: Law 24/1988, of July 28, on the Securities Market.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

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