Madrid Stock Exchange Mad Ma What It Is How It Works
Madrid Stock Exchange (Mad) .Ma: What It Is, How It Works
What Is the Madrid Stock Exchange (MAD) .MA?
The Madrid Stock Exchange is the largest securities market in Spain, also known as the Bolsa de Madrid. In 1809, Jose I Bonaparte attempted to establish Spain’s first stock exchange in Madrid, but it failed as Madrid was not a major business center. The law creating the Madrid Stock Exchange was enacted in 1831, with securities of banks, railways, iron, and steel companies being the first traded.
Key Takeaways:
– The Madrid Stock Exchange is the largest securities market in Spain.
– Spain’s equity market has four stock exchanges: Barcelona Stock Exchange (Bolsa de Barcelona), the Bilbao Stock Exchange (Bolsa de Bilbao), and the Valencia Stock Exchange (Bolsa de Valencia), along with the Madrid exchange.
– As of 1999, all of Spain’s exchanges trade in euros.
– The Madrid Stock Exchange provides financing for the private sector, public, and local bodies in Spain through its fixed income transactions.
How the Madrid Stock Exchange (MAD) .MA Works
The exchange remained open during WWI but closed during the Spanish Civil War from 1936 through early 1940.
The Spanish Stock Exchange transformed in 1988 with Spain’s incorporation into the European Monetary System. In 1993, the Madrid Stock Exchange switched to all-electronic trading for fixed-income securities, and in 1999 Spain’s securities markets began trading in euros.
Spain’s regulatory body is the Spanish Stock Exchange Commission.
Madrid Exchange Operations
The exchange notes that over the past two decades, it has established a "new trading environment characterized by increased competition, regulated markets, and newly created entities, including Multilateral Trading Facilities (MTFs)."
MTFs are systems operated by an investment firm or managing entity of an official secondary market. They gather buy and sell interests on financial instruments of third parties based on non-discretionary rules.
The Spanish equity market operates based on the SIBE electronic trading platform, connecting the four Spanish stock exchanges – Barcelona Stock Exchange (Bolsa de Barcelona), the Bilbao Stock Exchange (Bolsa de Bilbao), and the Valencia Stock Exchange (Bolsa de Valencia).
Warrants, certificates, exchange-traded funds (ETFs), futures, options, and the IBEX35 Index (which includes the 35 most-liquid shares traded) and various European stock indexes are traded.
Special Considerations
The exchange handles fixed-income transactions to provide financing for the private sector, public, and local bodies in Spain. It lists and trades a wide range of assets and products that meet the needs of issuers and investors in corporate debt, offering issuers varied possibilities in terms of fundraising strategies.
According to the World Federation of Exchanges (WFE), the exchange ranks 8th globally in investment flows, with 40 billion euros invested in listed companies in 2017.
