Operations Management

Allocation is a operation that is performed from the Daily Account.

It consists in assigning to the corresponding Position Accounts the Transactions that have been made in the Daily Account during the session.

The general rule is that the allocation period ends at the end of the clearing session and, therefore, the allocation must be made during that session until the allocation period of the Daily Account ends. Only in extraordinary circumstances will the period be extended to complete the allocation process.

There is no change in the price of the trade and the maximum volume that can be assigned is that of the original operation.

The type of operation that identifies the allocation is "D". The allocation is made by the member himself.

Give-up is an operation in which a client requests the execution of an order to a Member (called Executing Member), with the particularity that he also requests that, once the order is matched, transfer the record of the transaction  to another Member (called Destination Member) so that the transaction is registered in a Position Account of the Destination Member so that it meets the clearing and settlement obligations.

The Destination Member and, in the event that it is a Non-Compensating Member, his Clearing Member, may accept or reject the Give-up request. The total acceptance of the Give-up application is called acceptance or give-in.

There is no change in the price of the operation and the maximum volume is that of the original operation.

The type of operation that identifies the Give-up is "G".

Regularization is a transfer of operations (not of positions) between accounts of a Member.

Regularization or Transfer of Operation is the reallocation of an operation to another account or accounts different from the original within the same Member.

There is no change in the price of the operation and the maximum volume to be regulated is that of the original operation.

The type of operation that identifies the transfers of Operation is T.

In exceptional cases, BME Clearing may carry out transfers of Operations on behalf of the member.

A Position Transfer is the transfer of the position to another account or accounts distinct from the original of the original account with the  same member or among different members.

It does not generate position, and at most the open position at the time of the transfer request may be transferred 

Position transfer operations will be of type "Z".

They will be registered during the following  session  of the  request and exceptionally, on the same day of  receipt.

The registration will be made at the closing price of the previous session for the futures, at zero price for the options and at the registration price of the trade for the other products.

Position transfer operations will be subject to a commission fee, except in the case of forced position transfer due to incidents provided in the BME Clearing Rule Book or any other situation that may be considered by BME Clearing.

Act by which the buyer of an Option makes use of his right to buy or sell the Underlying Asset, or to obtain the amount resulting from the Cash Settlement and the ECC assigns the exercises to the selling positions.

Contracts that have not been exercised at the end of the hours of communication to BME Clearing on the Expiration Date will expire without value.

The Settlement for the Exercise of the contracts will be performed  by Cash Settlemnet or by delivery of the shares that constitute the Underlying Asset according to the Contract Class, in exchange for the cash payment of the Exercise Price.

In the case of Stock Options, the Exercises of these Options will produce the corresponding Cash Equities trades

The shares to be delivered will only be those admitted to negotiation with full rights and fungibility with the main series of shares of the value.

The Exercise may be carried out on the Expiration Date or any previous day if the option is American style, and only on the Expiration Date if the option is European style, with the time limits established by Circular

For the communication of the Exercise, in those cases where express communication is necessary, the procedure established by Circular must be followed.

Only express communication to BME Clearing will be necessary in the case that you want to exercise Options that do not meet the conditions indicated or in the case that, in compliance with the conditions indicated, you do not want to exercise.

Once the communication schedule to BME Clearing of the Exercise / non-Exercise orders has ended, if for any Series of Options all the selling positions are not exercised, the Exercises will be assigned proportionally between the selling positions of the same Series of Options, adjusting to whole numbers of Contracts.

In BME CLEARING the Detail Registration Accounts are entrusted to the Members with the Capacity to run a Second-Tier-Register, in accordance with the provisions of article 24 of the Rule Book.

The Detail Registration Accounts, whose holders are Clients, will be kept in relation to the Accounts of Clients with Omnibus segregation (OSA) of the Central Registry, and in them the Transactions and Margins of the incumbent Client are registered, reflecting at all times the position of each client in front of the Members with the capacity to run a Second-Tier Register.

The Individual Clearing Members and the General Clearing  Members of the BME Clearing Segments in which the corresponding General Conditions require the keeping of Second-Tier Register accounts in relation to the OSA Accounts of the Central Registry shall be considered as Members with the capacity to run a Second-Tier Register.

These Members will be authorized to perform the function of Registrar Members and will manage Second-Tier Register accounts, subject to the conditions established in Article 25 of the Regulations and in the Circular (Registration Members C-GEN-17/2018)

In order for the OSA Accounts of the Central Registry to reflect the position of the corresponding Second-Tier Register accounts, BME Clearing will allow, through the electronic settlement system, that the Member makes an adjustment of the position of the OSA Accounts in the Central Registry as a consequence of the closing of Transactions or Positions in the Second-Tier Register accounts.

An adjustment must be made for each contract with an open position.

The adjustment will consist of indicating by the Member the number of contracts that close position, which will reduce both the balance of purchases and sales for each contract to the same extent.

The Member may make as many position adjustments as he wishes, as long as the total volume adjusted for each contract does not exceed the open position at the time of making the adjustment.

The schedule at which Members may make position adjustments is regulated by Circular.

The position adjustments will be registered in the BME Clearing system as type P operations.

Cancellation. Wrong operations in Futures and Options

If MEFF in the application of the Circular, on Filters of Members and Erroneous Transactions in Futures and Options, or the one that replaces it, had to correct some operation, it would do so with an operation type “X” that would make a seat opposite to the operation of the original market and all the operations that in BME Clearingwould have been generated by transfers, breakdowns and give outs.

The Member that has intention to allocate trades at an Average Price, will be able to perform this action during any session, from any position account, selecting the trades to be converted, for the same contract, same side (long or short), and same register and execution date that must also match the original trade register date.

This procedure is available for IBEX 35, Mini IBEX 35 and Micro IBEX 35 future contracts.

Once performed Average Price trade, trade type J, original trades will be closed by using opposite value 0 type trades. In case of error, BME Clearing will allow its correction during the session when the Average Price trade has been created, previously requesting Member’s explanation. BME Clearing Operations Department will be entering an X trade type, in order to cancel the incorrect J trade, and will be getting back the original ones, by using an N trade type, so that the Member can request again the Average Price trade properly.

This procedure will have an associated fee, defined in the Financial Derivatives Fee Circular.

In order to help Members during its implementation period for this Average Price functionality, (at least during the 6 following months after effective date of this Circular C-DF-19/20 of 4 november), while its system is not ready to handle this automatized feature, they will be allowed (until 4 may of 2021) to keep  the requesting this procedure in the same terms that they were using it:

✓ It wi'll be used for managing the roll-overs during the expiry week, for IBEX 35, Mini IBEX 35 and Micro IBEX 35 future contracts.

✓ The merge will be carried out by BME Clearing Operations Department, after receiving Member’s request, for those trades allocated in 0PMC@ (long) and OPMV@ (short) position accounts.

✓ J Average Price trade will be allocated to the daily account, and the original trades will be closed by using a J trade type.

✓ The correction of errors will be also possible for this type of requests.