Extended Services | BME Bolsas y Mercados Españoles

The Extended Custody Services of BME offer multiple services aimed at entities, issuers, and clients that need a provider of technical resources to develop activities related to post-trading, corporate event management, or financial communication.

Benefits for Our Clients

Solutions

Providers of Post-Trade technical solutions for connection to BME infrastructures and also to the SWIFT network.

Approval

Suppliers approved by the infrastructures.

Experience

Experienced personnel in solutions with BME infrastructures and the SWIFT network.

Services and Solutions

The services we provide take advantage of the experience, strength, and security that characterize BME as an operator on Spanish market systems and infrastructure.

BME Securities Solutions (BME2S) offers approved technical resources to market and BME Clearing members and Iberclear participating entities.

This solution allows the client to outsource infrastructure connection services and operational compliance in settlement and custody activities.

Advantages:

Maintaining client independence and control
Flexibility in the degree of system performance
Flexibility in the handling and notification of data and instructions
Compliance with the technical infrastructure requirements:
- Market
- BME Clearing
- PTI
- Iberclear-T2S

BME2S offers the alternative that provides the client with full independence with respect to any regulatory, legal, or technical changes, since they will be fully covered by the platform, in a fully transparent manner vis-à-vis the client.

BME2S Technical Platform Modules

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)
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 (Inntech).

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:

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 Iberclear and the agent entity
Management of settlement instructions in IBERCLEAR/T2S and the Bank of Spain/ECMS
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.

We offer the outsourcing of the administration and management of connectivity to the SWIFT network through:

SWIFT Engine

Provides entities with connectivity to the SWIFT network through the outsourcing of the entire infrastructure, which provides support in service mode and the use of the SWIFT Hub components of BME and the SIX Group.

BME Highway

The service provides all types of companies with the technical means for connectivity to the SWIFT network, thereby enabling banking notification and guaranteeing the integration of the company’s financial messaging with its treasury management software or ERP.

The Corporate Events Service (EVCO) offers technical resources and support to Agent Entities in holding corporate events, as well as advice on its planning. Manages all types of events relating to securities registered in Iberclear: capital increases, IPOs, flexible dividends, exchanges, etc.

EVCO is also in charge of the technical coordination of notifications with participating entities, as well as with market infrastructures.

Capital Increases, Fixed Income Subscriptions, Fixed Income Swaps and Conversions

Preparation of a budget
Design of the rules to be followed for reporting trade data
Receipt of IT support and automated data processing
Preparation of the dissemination tables to be submitted to the CNMV

Takeover Bids, Public Offers for Sale or Subscription

Collaboration in the publication of the corporate event and the corresponding circular

Coordination and reception of all transactions and management of derived orders.
In public offers for sale or subscription, issuance of documentation adapted to each transaction.
Notifications to the CNMV.
In the case of takeover bids, publication of the result in the Daily Bulletin.

The Accounting Register of Book-entry and the Shareholder Register Book service offer technical support for keeping the book-entry record of unlisted securities as well as the register book of shareholders, both of securities admitted to trading on a regulated market or multilateral trading system, and unlisted securities with the book entry record in Iberclear.

Company managers can use their own terminals to consult individual shareholder information, including the current position and historical changes, as well as aggregated information by nationality, percentage of capital, etc.

We offer issuers two registration services:

Shareholder Register

It aims to record the daily movements of the shareholders' positions in the companies derived from the settled operations to know, in detail, the information that identifies the company's shareholders.

Features and benefits

Exclusive access to real-time information
Accurate, current, and historical information on security holders
Generation of complementary reports
Exhaustive detail concerning each annotation
Economy of scale with application of very low fees
Savings on operating expenses and connection costs in settlement services
Registration and Automatic update in the registry of reported transfers
Maintenance of the information for the necessary time, ensuring security and confidentiality.

Book-Entry Accounting Register

Enables the issuing company or the management company to record all transactions in order to know, in detail, the information that identifies the company’s shareholders.

Features and benefits

Exclusive access to real-time information
Accurate, current, and historical information on the owners of the securities
Generation of complementary reports
Exhaustive detail concerning each annotation
Immediate registration of transfers
Control of financial transactions
Technical and legal certainty in assigning ownership
A prerequisite for a subsequent IPO
Disappearance of physical titles with the consequent cost reductions.

This BME service facilitates the exchange of messaging between subscribing entities and the ECMS (Eurosystem Collateral Management System) platform for the management of collateral for monetary policy transactions with the Eurosystem.

Technical Sender acts as an operations center, assuming development, notification, and control functions of the different elements that make up the system. This enables compliance with the technical requirements of security, continuity, and contingency.

It offers two levels of service:

Technical Sender (TS)

Basic message routing service.

TS Converter (TSC)

Routing service with conversion of messages between different standards.

Message Categories Used by ECMS

Corporate Actions
Securities Settlement
Securities Management

Payments
Margin Call
Collateral Management

Cash Management
Credit Claims
Credit Freezing

What Entities Are Our Extended Custody Services Intended For?

Services	Intended For
Shareholder Register	Issuers / Managers / Participating Entities / Market Members
Book-Entry Accounting Register service	Issuers / Managers / Participating Entities / Market Members
Corporate Events	Agent Entities
BME2S – Post-Trade Management System	Market Members
BME2S – Clearing Management System	BME Clearing Members
BME2S – Deposit Management System	Participating Entities
BME2S – Static Data	Market Members / Participating Entities / BME Clearing Members
BME HighWay – SWIFT Engine	Market Members / Participating Entities / Managers / Banks
BME HighWay – Companies	Companies
Technical Sender / Converter	Participating Entities / Banks / Counterparty entities in ECMS / Central Securities Depositories

For More Information About Our Services

Send Us Your Inquiry

Solutions

Approval

Experience

Services and Solutions

BME Securities Solutions

BME Service Bureau

Corporate Events Service

Services to Issuers (Shareholders’ Registry)

Technical Sender

What Entities Are Our Extended Custody Services Intended For?