Spain
1 Country overview
MTS facilitates a regulated market for the wholesale electronic trading of Spanish government bonds and other types of fixed income securities.
2 Instruments
For a full list of available instruments, click here.
2.1 Minimum lots
For Proposals
Benchmark securities: EUR 5 million for benchmark securities
Liquid securities: EUR 2.5 million for liquid securities
Segregated securities (strips): EUR 1 million for principal only strips / EUR 1 million for coupon only strips
Increments: EUR 0.5 million for all types of securities
For Orders
Minimum order quantity: EUR 1 million for benchmark, liquid and segregated securities
Order increments: EUR 0.5 million for benchmark, liquid and segregated securities
2.2 Quoting obligations for treasury bills market makers
Minimum tradable amounts:
For Proposals
Treasury bills with benchmark reference: EUR 20 million
Treasury bills with non benchmark reference: EUR 10 million
Increments: EUR 0.5 million
For Orders
Minimum order quantity: EUR 1 million for treasury bills
Orders increments: EUR 0.5 million for treasury bills
3 Participants
For a list of participants, click here.
3.1 Requirements
Market makers: institutions that may apply to operate as market makers are official Spanish primary dealers (Creadores de Mercado), and other entities willing to participate under this figure. Market makers will be obliged to commit to:
− Provide two-way proposals for a predefined set of securities (including strips).
− Display proposals for the assigned bonds for a minimum amount of time during the trading.
session
− Respect a minimum volume and maximum bid/offer spread.
− Market making obligations on MTS Spain replicate those established by the Spanish Treasury for its Official Primary Dealers.
Price takers: entities that wish to participate as price takers will not have any quoting obligation to the platform, additionally as opposed to market makers, price takers will not be able to enter two way prices, but only lift or hit prices
4 Market Hours
Cash Market Hours (CET)
Pre-Market: 7:30am – 8:00am
Trading Hours: 8:00am – 5:30pm
Market Closed: 5:30pm
Repo
Market Hours (CET)
Pre-Market: 7:30am – 7:45am
Market Open: 7:45am – 5:15pm
GC allocation window: 5:15pm – 5:30pm
Market Closed: 5:30pm
5 Settlement
Trades on Spanish Government bonds settle at Iberclear. MTS sends an unique Swift settlement instruction on behalf of both participants to Iberclear. MTS participants must hold a securities account at Iberclear either directly or indirectly through a custodian.
LCH.Clearnet SA is available as a Central Counterparty: for CCP transactions MTS sends Swift trade messages on behalf of both participants to LCH.Clearnet SA.
The settlement cycle is T+2. The settlement calendar follows the TARGET calendar skipping value date only on TARGET non-business days.
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