Warrants Securities List

The list of warrants and securitized derivatives is determined through a formal admission-to-trading process. To have a security included, an authorized issuer (typically a financial institution) must submit a request to BME. The determination process involves:

• Regulatory Approval: Issuers must have a Base Prospectus and the specific Final Terms for each issue approved by and registered with the CNMV (the Spanish National Securities Market Commission).

• Compliance with Market Rules: BME verifies that the securities meet the technical and transparency requirements established in the Exchange’s Rulebook.

• Liquidity Commitment: For a warrant to be listed, the issuer must appoint a Specialist (Market Maker) who ensures continuous liquidity by providing bid and ask prices throughout the trading session.

• Ongoing Maintenance: The list is dynamic; securities are added as new tranches are issued and removed upon their expiration date or if they reach a "knock-out" level (in the case of Turbo products).

The warrants segment on BME (often referred to as the Warrants, Certificates, and Other Products market) includes a wide variety of leveraged and investment (delta-1) products:

A.  Leveraged Products:

• Plain Vanilla Warrants: Call and Put warrants that give the holder the right to buy or sell an underlying asset at a pre-set price.

• Turbo Warrants: Leveraged products that include a "Knock-Out" barrier; if the underlying asset touches this price, the warrant expires immediately.

• Multi-Warrants: Products that offer exposure to a basket of assets or specific technical strategies.

• Inline Warrants: These allow investors to generate returns if the underlying asset stays within a specific price range until maturity.

• Stay High / Stay Low Warrants: Products that offer a fixed payout as long as the underlying asset remains above (Stay High) or below (Stay Low) a specific barrier throughout the product's life.

B.  Investment Products :

• Certificates: These replicate the performance of an underlying asset on a 1:1 basis.

• Bonus: These provide an additional return or "bonus" if the underlying remains within certain boundaries.

• Discount: These allow for the purchase of the underlying at a discount in exchange for capping the maximum potential profit.

• Diverse Underlyings: These securities can be linked to a broad range of assets, including domestic and international equity indices (like the IBEX 35® or DAX®), blue-chip stocks, currencies (Forex), and commodities (Gold, Oil, etc.).