Spanish Market Reform (SMR)


The Spanish Market Reform, which significantly changed the clearing, settlement and registration process, began on 27 April 2016.  The main change was the introduction of the registration and settlement system, managed by Iberclear, the Central Securities Depository.  It was implemented in two phases:

Phase 1, 27 April 2016

In the first phase of the Reform project, Iberclear established a settlement procedure that enabled its participants to settle their trades in cycles or in real time.  The first phase was implemented on Trade Date 27 April 2016.  As from Trade Date 29 September 2016, the T+2 settlement cycle was introduced in the Spanish market.

EuroCCP is a direct Iberclear participant with CCP status.  This role implies that EuroCCP will (i) be responsible for the reporting of all gross transactions it has cleared and that settle in Iberclear and (ii) must support the operational processes relating to the four different types of accounts at Iberclear, namely:- Individual (I), Proprietary (P), Third Party (TPA) and Special Financial Intermediary (SFI).  

Further details can be found in Service Description and Specification Spanish Market Reform

Phase 2, 18 September 2017

In the second phase, IBERCLEAR will connect to TARGET2-Securities (T2S) and outsource the settlement process, which will, from that point onward, be performed in accordance with procedures and timetables established by T2S.  The implementation of the second phase is scheduled for the weekend of 16–17 September 2017. The first settlement day on the new settlement platform will be 18 September 2017. A detailed description of the Migration Weekend process can be found in EuroCCP migration plan T2S Wave 5 - Spain.

EuroCCP will become a Directly Connected Party (DCP) to the T2S platform in the Spanish market and operate a Dedicated Cash Account (DCA) with the Dutch Central Bank.  With the introduction of T2S in the Spanish market, certain elements of EuroCCP’s service for the Spanish market will change.  A detailed description of these changes can be found in Service Description - Spanish Market Reform T2S.

Client Testing

In order to ensure a smooth, safe and efficient migration to T2S, EuroCCP offers the testing of the settlement and registration process in ARCO II/T2S mode to its Clearing Participants and their Settlement Agents.

Client Testing in ARCO II/ T2S mode will be available from 24 April 2017. A detailed description of the test requirements, EuroCCP Client test environment, test cases and self certification can be found in Client test plan Spain T2S

Clearing Participants are asked to confirm their readiness to EuroCCP for the migration to ARCO II / T2S, we would like to refer you to the Readiness Statement, which should be signed and submitted by 1 September 2017.

Owner Reference Static Data File (ORS)

From Monday 24 April 2017, the updated ORS file can be used to add Owner Reference Data including the Date of Birth. A detailed description of the implementation and the collection of the Date of Birth for natural persons can be found in the Owner Reference Static Data file