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 2016.

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