BME Securities Solutions
BME2S is a certified technical provider which offers technical support to market members, members of BME Clearing and IBERCLEAR participant entities, which allow the client to outsource the connection to the infrastructures, ensuring operational compliance.
The BME2S platform stands between the infrastructures of the market and the client entity, absorbing and adapting to any operational or technical change requested by the infrastructures. In an environment in which regulatory adaptations and new developments are increasingly demanding and require specialized resources, BME2S offers an alternative that allows the client total independence from any regulatory, legal, or technical change that must be carried out for the correct fulfillment of the activities linked to the settlement and custody of securities since they will be fully covered by the platform, transparently to the customer.
In summary, the adoption of this solution guarantees the client regulatory compliance in terms of the activity of settlement and custody, while improving efficiency by ensuring savings in development and maintenance resources.
BME2S combines proven experience in the provision of tools for settlement and custody tasks for a wide range of clients, together with the experience and soundness that only a Group such as SIX-BME can provide.
The BME2S Technical platform consists of the following modules:
- SGP – Post-Trading Management System
- SGC – Clearing Management System
- SGD – Custody Management System
- SGX – Static Data System
The SGP, SGC and SDG modules are totally independent. If more than one is contracted, the systems interact with each other, providing added value and transmitting information in real time.
The advantages of contracting BME2S services are as follows:
Post-Trading Management System (SGP) – Market members
The Post-Trading Management System provides the market member with main functions, such as:
- Execution and transaction register
- Linking transactions to the shareholder
- Internal and external allocations in BME Clearing (automated)
- Ownership communication to the PTI
- Calculations and management of the Settlement and brokerage fees and the FTT
The system also interacts with the other two BME2S management systems: the Clearing Management System (SGC) and the Custody Management System (SGD), as well as with Visual Trader (VT).
Clearing Management System (SGC) – BME Clearing members
The purpose of the Clearing Management System (SGC) is to provide the BME Clearing Member with the necessary mechanisms to manage the transactions recorded in its Central Registry accounts. To this end, the System provides the user with management tools that facilitate:
- The maintenance of the transaction at Second-Tier registry level
- Acceptance or rejection of external allocations
- Processing of internal and external allocations
- Calculating risks and setting alerts
- Maintaining filters
The system allows the configuration of alerts based on the consumption of collateral in BME Clearing.
The SGC exchanges information with the BME2S management systems and with other management systems.
Custody Management System (SGD) – IBERCLEAR participant entities
The Custody Management System (SGD) is the BME2S module for participating entities that meets the technical requirements of IBERCLEAR and, therefore, has the functionalities to manage settlement, the registration of transactions and corporate events, in accordance with the rules and procedures established by ARCO and Target2-Securities. Among its main fully automated functions, the following stand out:
- Maintenance of the Central and Second-Tier Registry.
- Management of corporate events with the agent entity
- Management of settlement instructions in IBERCLEAR/T2S and the Bank of Spain
- Calculation and reconciliation of the amount to be settled in T2S
- Management of withholding and release instructions in BME Clearing
- Notification of ownership to PTI
- Tax forms. Calculation and reporting of the Financial Transaction Tax (FTT).
This technical platform is connected to the following infrastructures: BME Clearing, Post-Trade Interface (PTI), IBERCLEAR/Target2-Securities (T2S), Bank of Spain and corporate event agents.
Connectivity with T2S will always be through IBERCLEAR (indirect connectivity with T2S).
Static Data System (SGX)
The purpose of the Static Data System (SGX) is to record a series of data (clients, securities master, links between clients and accounts to facilitate the automation of processes, fees, etc.) necessary for the management of each of the BME2S modules.
