REQUIREMENTS FOR BECOMING MEMBER OF THE STOCK EXCHANGE

Membership of the Spanish Stock Exchanges and multilateral trading systems of Bolsas y Mercados Españoles (hereinafter, the “BME Group”) is open to Spanish investment service companies and credit entities, and non-Spanish entities both within and outside the European Union. Within the European Union, investment service companies and credit entities are subject to the provisions of Directive 2004/39/EC, of the European Parliament and of the Council, of 21 April 2004, on markets in financial instruments, and Directive 2006/48/EC, of the European Parliament and of the Council, of 14 June 2006, relating to the taking up and pursuit of the business of credit institutions.

Investment service companies and credit entities from outside of the European Union must become members of Spanish Stock Exchanges in order to undertake investment activities in Spain. This requires prior authorisation from the Ministry of Economy and Competitiveness, at the proposal of the National Securities Market Commission (Comisión Nacional del Mercado de Valores or “CNMV”).

The entity must apply for membership of one or more of the Spanish Stock Exchanges, in Barcelona, Bilbao, Madrid and Valencia. The procedure for becoming member of the Stock Exchange is included in the Circular of the respective Stock Exchanges number 1/2016.

To achieve member status of any Spanish Stock Exchange, the applicant entity must, at least, be a non-clearing member of the central counterparty that has entered into clearing agreements with the Stock Exchange to which the entity has applied, for trades in the relevant multilateral trading segments. The Spanish Stock Exchanges have currently agreed clearing agreements with the central counterparty BME Clearing, part of the BME Group.

The applicant entity may also be a participant in the registration and settlement system managed by the settlement system with which the Stock Exchange to which the entity has applied has entered into the agreements required for settlement of its trades. The Spanish Stock Exchanges currently have settlement agreements with Iberclear, the BME Group's Central Securities Depository (CSD).

Entities interested in acquiring membership of any of the aforementioned Stock Exchanges may simultaneously apply to become members of the BME Group's multilateral trading systems: the Alternative Securities Market ("MAB" for its initials in Spanish) and the Latin American Securities Market (“Latibex”).