Current status of the project to reform the securities system - International Law Office

On October 13 2010 the Comisión Nacional del Mercado de Valores (CNMV) published the latest of its regular reports on the status of the project to reform the Spanish system for the clearing, settlement and registration of securities on the Spanish equity market. Reporting began with the document made available for public consultation between February 12 2010 and March 15 2010. This latest report summarises the work carried out in the period since its last communication (June 30 2010).

Various aspects have been discussed relating to the corporate governance of the Central Counterparty Clearing House (CCP), its institutional composition, its interoperability with other CCPs and the provision of clearing services to various trading platforms, all from the perspective of the practical experience in other jurisdictions that already have CCPs.

The report analyses the proposed alternative models for the registration and safekeeping of securities in a settlement system, by way of prior clearance of the transactions by a CCP. For these purposes, the CNMV has presented for debate two possible forms of supervision and control:

• a control model based on updating the second step at the registry by supplying the corresponding security delisting number (based on security identification codes); or
• a control model based on the introduction and use of standardised procedures for the keeping of securities accounts.

In both cases the settlement and registration processes would be very similar and could entail the introduction of stricter capital and operating resource requirements.

For further information on this topic please contact Javier Ybáñez or Luis de la Peña at Garrigues Abogados & Asesores Tributarias by telephone (+34 91 514 5200), fax (+34 51 399 2408) or email (javier.ybanez@garrigues.com or luis.de.la.pena@garrigues.com).