The implementation of a new settlement model in the Spanish market, resulting from the reform led by Iberclear, marks a significant advance toward alignment with European standards. This development concludes a decade of transformations in post-trade processes in Spain and prepares the way for the D+1 settlement cycle, which is expected to be activated in October 2027.
This new framework, regulated under Law 6/2023 and Royal Decree 814/2023, eliminates the need for the Central Securities Depository to have an information system to supervise the trading and settlement of securities. This restructuring not only reduces operational risks and associated costs, but also optimizes and speeds up the procedures, reducing the number of failed trades on their settlement date.
The adoption of the European standard 'Party 2' strengthens the efficiency of the Spanish market and increases its competitiveness. By removing barriers to cross-border investment and settlement, interoperability with the rest of Europe is improved, aligning processes with the continent's best practices.
One of the key aspects of this reform is the preparation for the D+1 settlement cycle, already implemented in initial public offerings such as those of HBX Group and COX. This transition aims to minimize risks and optimize market efficiency, as evidenced by the positive data since its implementation, reflecting its success.
This change closes a cycle of evolution in the settlement system in Spain, initiated in May 2015 with Reform-1 and followed by Reform-2 in 2017, which unified the fixed-income and equity systems.
José Manuel Ortiz, Interim Head of Securities Services at SIX, highlighted the importance of the industry's joint effort to materialize these transformations, emphasizing that collaboration was crucial to the project's success. The entry into force of this reform promises a significant boost to the efficiency and competitiveness of Spain's capital markets.
