The market admission process is designed to make compliance straightforward, fast and free of charge for companies.
There is a circular particularly dedicated to requirements applicable to the quotation of Latin American securities. (Circular 1/2018).
If an agreement exists between the Central Depositories, the contract may be replaced by an application to the Central Depository in the country of origin to use the connection the latter may have established with the Spanish Depository. Currently, these agreements exist for Argentina and Brazil.
Once all the documentation has been presented, the Latibex Board will study the security's application to be listed.
Judging by the experience of other companies with respect to the time involved in the listing authorization process, this period is very short: two weeks perhaps being sufficient. The delay is sometimes longer due to the need to seek the best date to start trading, which in practice involves the elaboration of a Communication Plan which basically involves the presentation of the company in Madrid to the Spanish financial community (the main Spanish institutional investors and media groups). This means that the company's relevant managers should be present at the ringing bell ceremony.
Carrying out a public share offering is not a requirement as such in Latibex. However, the definition of a strategic plan to create liquidity and a sound base in the market is considered preferable. This plan may involve the availability of shares to lend or making a certain amount of securities available to offer as counterpart to a broker or Bank in Spain, in the initial period at least. A share placement among institutional investors would be a simple alternative and would serve to spread the security initially.
Even if no public offering (PO) is necessary it would still be the ideal solution to guarantee a good level of liquidity from the beginning.
La incorporación y posterior permanencia de la compañía en Latibex no devengarán ningún coste para la emisora por parte de este mercado ni del depositario central español (Iberclear). Únicamente se habrá de tener en cuenta, en su caso, el coste de la entidad enlace, que será negociable.
La información que la empresa debe suministrar a Latibex será la misma que presente ante las Bolsas y/o entidades reguladoras de los mercados en los que cotice. Como regla general, dicho envío deberá realizarse a la mayor brevedad posible y con antelación suficiente.
La información puede agruparse en dos grandes bloques:
The Associated Entity (AE), whose client wishes to carry out an inclusion on Latibex, should send instructions to their foreign custodian to deliver the shares free of charge to the LE's foreign custodian, indicating all the following information:
It is advisable for the AE to inform that the LE of all previous information, as well as settlement instructions in the market of origin (transfer agent with their code at the Central Depository, account and name of the agent-final beneficiary- and the transfer dates).
The Associated Entity (AE), whose client wishes to carry out an exclusion from Latibex, should send instructions to the LE indicating all the following information:
The AE should additionally send instructions to their foreign custodian to accept the shares transfer free of charge from the LE's foreign custodian.
On receiving the confirmation of exclusion on the part of the Iberclear, the LE shall ask their foreign custodian to transfer the securities free of charge in accordance with the instructions received.
The Associated Entity (AE), whose client wishes to be listed on the Latibex, should send instructions to their foreign custodian to deliver the shares free of charge to the account the Iberclear holds at the Central Depository of origin, indicating all the following information:
On receiving confirmation from the Central Depository in the country of origin of having received the securities, the Iberclear shall transfer the securities to the AE according to the instructions received. The transfer shall be carried out immediately.
La Entidad Adherida (EA), cuyo cliente desee realizar una exclusión desde Latibex, deberá enviar instrucciones a su custodio extranjero para recibir las acciones libres de pago desde la cuenta que Iberclear mantiene con el Depositario Central en el país de origen. Adicionalmente la EA efectuará el traspaso libre de pago de los títulos, mediante mensaje M36, al código de entidad asignado por Iberclear al correspondiente Sistema de origen indicando todos los datos siguientes:
Iberclear solicitará al Depositario Central en el país de origen el traspaso de los valores según las instrucciones recibidas.
In the Spanish system, transactions involving securities recorded in book-entry form are settled on T+2 (two business days after the trade date). Clearing and settlement are carried out through a single central securities depository, Iberclear.
The settlement of transactions executed on Latibex is conducted through a custodian entity participating in Iberclear, which must maintain the securities accounts and cash balances required for the member's activity on Latibex. In other words, Latin American members do not settle directly with Iberclear; instead, they must enter into an agreement with an authorized Spanish custodian entity that will settle transactions on their behalf. Iberclear sets out the applicable requirements and contractual framework in its Circular nº 2 / 2002.
If your company is listed on a Latin American stock exchange, has a market capitalization of more than EUR 300 million, and is looking to increase its visibility and gain access to European investors, Latibex may be an excellent option. This market enables Latin American companies to access Europe through a streamlined admission process, with no listing fees and a transparent trading environment that is internationally recognized.
