Here’s the translation into American English:
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The entry into force of a new settlement model, resulting from the recent reform coordinated by Iberclear, represents a significant advancement toward harmonizing the Spanish market with European standards. This change is the culmination of a decade of transformations in post-trade processes in the country and lays the groundwork for the implementation of the D+1 settlement cycle, expected to occur in October 2027.
The regulation, established by Law 6/2023 and Royal Decree 814/2023, eliminates the requirement for the Central Securities Depository to have an Information System to oversee the trading and settlement of securities. This modification simplifies and accelerates operational processes, thereby reducing both operational risks and associated costs. Additionally, it minimizes the volume of transactions that could fail on their theoretical settlement date.
With the adoption of the European standard for case criteria, known as “Party 2,” the Spanish market not only improves its operational efficiency but also enhances its competitiveness by removing barriers to investment and cross-border settlement. This advancement facilitates greater interoperability with the rest of Europe, aligning settlement processes with best practices across the continent.
A crucial element of this reform is its focus on the transition to the D+1 settlement cycle, which is already underway in initial public offerings, such as those of HBX Group and COX. This migration not only promises to reduce risks but also improves market efficiency, as evidenced by the positive settlement data that has been maintained since its implementation, illustrating its success.
The reform represents the close of a chapter after a decade of evolution in the settlement system in Spain. This process began in May 2015 with Reform-1 and continued in 2017 with Reform-2, which unified the fixed income and equity systems.
José Manuel Ortiz, Head of Securities Services a.i. at SIX, has emphasized the importance of the industry’s collaborative effort to implement these changes, highlighting that cooperation has been fundamental to the project’s success. The entry into force of this reform translates into a considerable boost to the efficiency and competitiveness of capital markets in Spain.
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Let me know if you need any further modifications!
via: MiMub in Spanish
