Madrid Spain

History

The Bolsa de Madrid, or Madrid Stock Exchange, is the largest and most international among Spain’s four regional stock exchanges, with others located in Barcelona, Valencia, and Bilbao. It facilitates the trading of shares, convertible bonds, fixed-income securities, and both government and private-sector debt. Owned by Bolsas y Mercados Españoles, the Bolsa de Madrid was officially established in 1831. In 1993, it transitioned to all-electronic trading for fixed-income securities.

In compliance with Spanish law, the Bolsa de Madrid is managed and operated by the Sociedad Rectora de la Bolsa de Valores de Madrid S.A., a corporation organized under the laws of the Kingdom of Spain. The exchange boasts a membership comprising 41 major financial institutions and 12 established securities dealers. As of December 31, 2001, around 1477 domestic and foreign companies had their equity securities listed on the Madrid Stock Exchange. The total market capitalization of these equity securities in May 2007 amounted to €1,276.26 billion.

The restructuring of Spain’s financial market encompasses bolsas, derivatives markets, and fixed-income markets under the national framework of the Spanish Stock Market. Trading is seamlessly connected through the electronic Spanish Stock Market Interconnection System (SIBE), facilitating over 90% of transactions, with all fixed-income assets traded via SIBE.

The Madrid Stock Exchange General Index (IGBM) serves as the principal index, representing various sectors such as construction, financial services, communications, consumer, capital/intermediate goods, energy, and market services. The IBEX 35 Index, a capitalization-weighted benchmark, includes the 35 most liquid Spanish stocks traded in the continuous market. Additionally, Bolsa de Madrid offers the FTSE-Latibex Index, focusing on European trading for Latin American stocks. The Ibex New Market Index, designed for emerging companies, was available from 2000 to 2007. Settlement occurs on T + 3. Trading on SIBE is conducted from 9 a.m. to 5:30 p.m., with open outcry sessions from 10 a.m. to 11:30 a.m., Monday through Friday.