Securities

BME Clearing manages securities collateral within a secure and transparent framework, which includes eligible assets, collateral posting and ongoing valuation. 

They must consist of Spanish Sovereign debt registered with IBERCLEAR. Sovereign public debt securities of Germany, France, The Netherlands, Austria, Italy and Portugal registered at IBERCLEAR through the connections with other central securities depositaries will also be accepted. 

Sovereign public debt securities of Spain, Germany, France, The Netherlands, Belgium, Austria, Italy, Portugal, United Kingdom and the United States registered in SIX SIS or EUROCLEAR BANK SA/NV  is also accepted. 

 Eligible Securities, Conditions and Concentration Limits 

• In all cases above Treasury notes and bonds with fixed, floating coupons, or issued as zero-coupon bonds, will be accepted.  

• Any issuance must have a minimum outstanding nominal balance of €5 billion, except for the regional debt for which there is no such restriction, and for the Portuguese sovereign debt for which the required minimum outstanding nominal balance will be of €1 billion  

• The collateral provided by one single clearing member in the same issuance must not exceed 10% of its outstanding nominal balance, and the total collateral provided by all the members in that issuance must not exceed 25% of the outstanding nominal balance.  

• Securities must have a residual life of over three months on the date they are posted as collateral.  

• A clearing member’s exposure in any residual maturity of the same issuer term cannot exceed: 
  • Ten times the daily average volume of the corresponding residual maturity term for assets maturing within 11 years
  • Six times the daily average volume of the corresponding residual maturity term for assets maturing after 11 years.

These must be shares listed on the IBEX 35 index. 

Eligible Securities, Conditions and Concentration Limits

• Securities issued by the party subject of the secured obligation or by any entity pertaining to the same corporate group as the party subject of the secured obligation cannot be offered as collateral; neither can securities issued by the clearing members, non-clearing members or clients thereof. 

• The maximum collateral that a clearing member can post in a single stock cannot exceed 15% of the total collateral provided by said clearing member. 

• The maximum collateral in shares in a specific economic sector that a clearing member can post cannot exceed 30% of the total collateral provided by said clearing member.

• By pledge of securities with IBERCLEAR or EUROCLEAR BANK SA/NV.
• By transfer of ownership, through a transfer of the collateralised securities by the Clearing Member to the corresponding securities account of BME CLEARING with IBERCLEAR, SIX SIS or EUROCLEAR.

BME Clearing measures in real time the credit quality, market liquidity and price volatility of each asset accepted as collateral.

BME Clearing system updates in near to real time, every 15 minutes, the prices of assets accepted as collateral: last price for equities provided by SIBE, and bid-ask average calculated based on bid and ask price data per issue provided by SIX BFI for sovereign debt.