A EUROMONEY SURVEY - MARCH 1996
SETTLEMENT
There are three different securities settlement operations in Spain: the Bank of Spain's Central de Anotaciones for public debt, Espaclear for corporate debt and the stock market's Servicio de Compensacion y Liquidacion de Valores (SCL) for share settlement.
Share settlement
The creation of the Servicio de Compensacion y Liquidacion de Valores, the settlement and registration system in Spain which began operating in December 1992, means that the country now has a paperless, computerized, centralized and fully fungible electronic system for registration and settlement of all shares quoted on the Spanish stock exchanges. The system has simplified settlement procedures in Spain and reduced the normal settlement period to only five working days (T+5). This has meant large cost reductions and increased efficiency. Previously, settlement could take up to 15 working days. Because the system is centralized and has simultaneous delivery-versus-payment, the risk for foreign investors is considerably reduced.
The SCL is owned by the banks and stock exchanges. Within the SCL, all Spanish banks hold securities accounts on behalf of their clients. The SCL monitors its members' accounts, lodging not only its own portfolio but also the positions held in favour of third parties.