Table of Contents
Bolsa de Madrid (BME)
BME is the largest and most international of Spain's four regional stock exchanges.
The reorganisation of Spain's financial market under the national umbrella of the Spanish Stock Market includes the bolsas, the derivatives markets, and fixed-income markets. Trading is linked through the electronic Spanish Stock Market Interconnection System (SIBE), which handles more than 90% of transactions. All fixed-income assets are traded through SIBE.
Currency: Euro (EUR)
Trading Summary
Interconnection Trading System S.I.B. (Sistema de Interconexión Bursátil) is a trading platform used by the four Spanish stock exchanges (Madrid, Barcelona, Bilbao, and Valencia) that ensures a single point of liquidity per share and facilitates direct, real-time communication among the stock exchanges, allowing for a single price and order book per share.
Most shares listed on the S.I.B. form part of the Main Trading market, which is an order-driven continuous market with an opening auction at the session’s beginning and a closing auction at the end. In addition, some of these shares have specialists responsible for providing liquidity.
Order Types
- Limit Buy/Sell→ShortSell
- Limit-On-Close Buy/Sell→ShortSell
- Market Buy/Sell→ShortSell
- Market-On-Close Buy/Sell→ShortSell
Available ATS
- BATS CHI-X Europe
- Turquoise
Basic Market Rules
- Lot Size: 100 shares.
- Tick Size: varies by price, as follows:
| Price Range (Euro) | Tick Size (Euro) |
|---|---|
| 0 to 9.999 | 0.001 |
| 10 to 49.995 | 0.005 |
| 50 to 99.99 | 0.01 |
| 100 and greater | 0.05 |
- Short Sale Rules: short sell is allowed. Naked short selling is prohibited.
- Circuit Breakers: activates when either the static or the dynamic price limits are exceeded. An auction follows the break, lasting 5 minutes with a 30-second random end.
- Note: as part of pre-trade transparency requirements under the new MiFID II rule, Europe hidden or hidden portion of iceberg (e.g., CHIX-X Bats and Turquoise reserve/dark orders) order must be sent above the Large In Scale (LIS) thresholds as defined by the European Securities and Markets Authority (ESMA). For more information about the MiFID II rules, visit the ESMA official website at https://www.esma.europa.eu/.
Auction Mechanisms
Open
The Opening Auction phases are at 8:30 - 9:00. The session begins with the Opening Auction, during which the order book is partially visible. During this time, orders can be entered, amended, and cancelled, but no trades can be executed. All orders from the previous day remaining in the order book and entered during the Opening Auction participate.
This period (for the Main Trading segment) lasts 30 minutes, with a 30-second random end period to prevent prices from being manipulated. After the random end, the allocation period begins, during which the shares included in orders subject to execution at the fixed auction price are traded. During the allocation period, orders cannot be entered, altered, or cancelled. On special occasions, the opening auction may be extended.
Once the shares are allocated, members receive information on the total or partial execution of their orders. All non-executed orders in the allocation period remain on the order book. The market is informed of the opening price, trading volume, time of each trade, and the identity of the trading members. After this, the market is open.
Close
The closing price is defined by the following auction mechanism:
Auction means an auction conducted in a trading platform in respect to qualifying orders to determine the auction price pursuant to the following process:
- a) The price at which the largest volume of shares is executed
- b) If there are two or more prices at which the same number of shares can be executed, the auction price will be that which leaves the smallest surplus (difference between bid and ask volumes)
- c) If the above two conditions are the same, the price of the side with the largest volume will be taken
- d) If the above three conditions are the same, the price which is closest to the last executed price will be taken
- e) Orders will be executed based on price-time priority
Auction Periods
1. Open market (09:00 - 17:30)
- Orders may be entered, amended, and cancelled
- No closing orders will be matched, all other orders will be matched to the open market
2. Closing auction (17:30 - 17:34:45)
- Orders may only be entered
- No orders will be matched
3. Uncross (17:34:45 - 17:35:30)
- Closing orders will be matched
- Trades will be reported
Order Types: Market, Limit, and Market-On-Close (MOC) orders are eligible to participate in the closing auction.