The Madrid Stock Exchange has taken a new step towards the modernization of its trading system with the launch of SpainAtMid, a non-pre-trade transparency order book that promises to revolutionize the equity market in Spain. This innovative tool allows for trades to be made at the midpoint of the visible buy and sell spread, thus providing an additional source of liquidity that could significantly increase the efficiency of the Spanish market.
SpainAtMid is designed to interact immediately with the visible book of BME and is available for securities traded continuously during the open market phases. This gives intermediaries the ability to handle larger orders with less impact on prices, improving the execution of both passive and aggressive orders.
The new system supports different types of orders, including Direct and Sweep. Direct orders are exclusively executed at the midpoint, while Sweep orders first attempt to execute through SpainAtMid and, if there is remaining volume, are moved to the visible book for complete settlement or cancellation. Both modalities offer options for market or limit orders and incorporate specific conditions such as “Immediate or Cancel” or “Minimum Volume.”
Iván Lorenzo, Product Manager at BME, has noted that the creation of SpainAtMid responds to the increasing demand among clients for non-pre-trade transparency trading platforms. Inspired by the success of the Swiss SwissAtMid launched in 2016, SpainAtMid aims to concentrate more liquidity in the Spanish market, benefiting all participants in the trading.
Since its launch, SpainAtMid has received the backing of early clients, indicating a promising future for this new tool in the transformation of the equity market in Spain. It is expected that this development will have a similar impact to what it had in the Swiss market, increasing the competitiveness and appeal of the Madrid Stock Exchange for traders and investors.
Source: MiMub in Spanish
