This step marks the second phase of the Reform of the Spanish Clearing, Settlement and Registration System, which features changes to the Fixed Income securities, which are now settled together with Equities on a single platform, ARCO.

The first phase, completed in April 2016, dealt with changes in the Equities post-trade process: a Central Counterparty was introduced, the Registration References were eliminated and replaced with a system based on balances and settlement finality was established on the settlement date, rather than on trade date. During this phase the settlement cycle was also reduced, from T + 3 to T + 2.

The migration of Iberclear to T2S is one of the Reform’s key elements. This step will allow the post-trade system in Spain to be aligned with those of other leading European securities markets within the Eurozone, increase its efficiency, optimise costs and enhance its competitiveness, a key aspect in an increasingly competitive environment.

The process has entailed major regulatory changes, effected by the General Secretariat of the Treasury and the Ministry of Economy. The complexity and depth of the Reform process has demanded a significant amount of resources, work and coordination among all the agents involved. BME would like to thank the supervisors, the Bank of Spain and the CNMV, the participating entities and its own employees for the effort made throughout the project but especially last year, in which work intensified to make the new Spanish post-trade scenario a reality.