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Annual Report Regarding Its Actions and the Securities Markets 2009

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Annual Report Regarding Its Actions and the Securities Markets 2009 Annual reportAnnual its actions regarding and the securities markets 2009 CNMV Annual report regarding its actions and the securities markets 2009 CNMV annual report regarding its actions and the securities markets 2009 Comisión Nacional del Mercado de Valores Serrano, 47 28001 Madrid Passeig de Grácia, 19 08007 Barcelona © Comisión Nacional del Mercado de Valores The contents of this publication may be reproduced, subject to attribution. The CNMV distributes its reports and publications via the Internet at www.cnmv.es. Design: Cromotex ISSN (Printed edition): 1889-5174 ISSN (Digital edition): 1989-5674 Depósito Legal: M-4662-2007 Printing: Producciones MIC Translation: Eagle Language Service, S.L. Abbreviations ABS Asset Backed Securities AIAF Asociación de Intermediarios de Activos Financieros (Spanish market in fixed-income securitie) ANCV Agencia Nacional de Codificación de Valores (Spain’s national numbering agency) ASCRI Asociación española de entidades de capital-riesgo (Association of Spanish venture capital firms) AV Agencia de valores (broker) AVB Agencia de valores y bolsa (broker and market member) BME Bolsas y Mercados Españoles BTA Bono de titulización de activos (asset-backed bond) BTH Bono de titulización hipotecaria (mortgage-backed bond) CADE Central de Anotaciones de Deuda del Estado (public debt book-entry trading system) CDS Credit Default Swap CEBS Committee of European Banking Supervisors CEIOPS Committee of European Insurance and Occupational Pensions Supervisors CESFI Comité de Estabilidad Financiera (Spanish government committee for financial stability) CESR Committee of European Securities Regulators CMVM Comissão do Mercado de Valores Mobiliários (Portugal’s National Securities Market Commission) CNMV Comisión Nacional del Mercado de Valores (Spain’s National Securities Market Commission) CSD Central Securities Depository EAFI Empresa de Asesoramiento Financiero (financial advisory firm) EC European Commission ECB European Central Bank ECLAC Economic Commission for Latin America and the Caribbean ECR Entidad de capital-riesgo (venture capital firm) EMU Economic and Monetary Union (euro area) ETF Exchange traded fund EU European Union FI Fondo de inversión de carácter financiero (mutual fund) FIAMM Fondo de inversión en activos del mercado monetario (money-market fund) FII Fondo de Inversión Inmobiliaria (real estate investment fund) FIICIL Fondo de instituciones de inversión colectiva de inversión libre (fund of hedge funds) FIL Fondo de inversión libre (hedge fund) FIM Fondo de inversión mobiliaria (securities investment fund) FTA Fondo de titulización de activos (asset securitisation trust) FTH Fondo de titulización hipotecaria (mortgage securitisation trust) IAASB International Auditing and Assurance Standards Board IAS International Accounting Standards IASB International Accounting Standards Board IFRS International Financial Reporting Standards IIC Institución de inversión colectiva (UCITS) IICIL Institución de inversión colectiva de inversión libre (hedge fund) IIMV Instituto Iberoamericano del Mercado De Valores IOSCO International Organization of Securities Commissions ISIN International Securities Identification Number LATIBEX Market in Latin American securities, based in Madrid MAB Mercado Alternativo Bursátil (alternative stock market) MEFF Spanish financial futures and options market MFAO Mercado de Futuros del Aceite de Oliva (olive oil futures market) MIBEL Mercado Ibérico de Electricidad (Iberian electricity market) MiFID Markets in Financial Instruments Directive 5 MMU CNMV Market Monitoring Unit MoU Memorandum of Understanding OECD Organisation for Economic Co-operation and Development OICVM Organismo de inversión colectiva en valores mobiliarios (UCITS) OMIP Operator of the Iberian energy derivatives market (Operador do Mercado Ibérico de Energía) P/E Price/earnings ratio RENADE Registro Nacional de los Derechos de Emisión de Gases de Efectos Invernadero (Spain’s national register of greenhouse gas emission permits) ROE Return on Equity SCLV Servicio de Compensación y Liquidación de Valores (Spain’s securities clearing and settlement system) SCR Sociedad de capital-riesgo (Venture capital company) SENAF Sistema Electrónico de Negociación de Activos Financieros (electronic trading platform in Spanish government bonds) SEPBLAC Servicio Ejecutivo de la Comisión de Prevención del Blanqueo de Capitales e infracciones monetarias (Bank of Spain unit to combat money laundering) SGC Sociedad Gestora de Carteras (portfolio management company) SGECR Sociedad gestora de entidades de capital-riesgo (venture capital firm management company) SGFT Sociedad Gestora de Fondo de Titulización (asset securitisation trust management company) SGIIC Sociedad gestora de instituciones de inversión colectiva (UCITS management company) SIBE Sistema de Interconexión Bursátil Español (Spain’s electronic market in securities) SICAV Sociedad de Inversión de Carácter Financiero (open-end investment company) SII Sociedad de Inversión Inmobiliaria (real estate investment company) SIL Sociedad de Inversión Libre (hedge fund in the form of a company) SIM Sociedad de Inversión Mobiliaria (securities investment company) SME Small and medium-sized enterprise SON Sistema Organizado de Negociación (multilateral trading facility) SV Sociedad de Valores (broker-dealer) SVB Sociedad de Valores y Bolsa (broker-dealer and market member) TER Total expense ratio UCITS Undertaking for Collective Investment in Tradable Securities 6 General table of contents Abbreviations 5 Index of boxes 11 Index of tables 13 Index of figures 15 Index of annexes 17 I Economic and financial framework 19 1 Economic and financial situation 21 1.1 International economic and financial situation 22 1.1.1 The world economy 22 1.1.2 The international financial markets 26 1.2 The economic and financial situation in Spain 32 1.3 Economic and financial outlook 38 2 Financial markets through the crisis: challenges and initiatives for their recovery 39 2.1 The dual nature of the crisis (I): macro-financial imbalances 39 2.2 The dual nature of the crisis (II): failures in credit risk management 41 2.2.1 Global imbalances and the demand for safe assets 41 2.2.2 Increase in the world supply of safe financial assets 43 2.2.3 The main failures in risk transfer mechanisms 46 2.3 Main regulatory initiatives in securities markets 51 2.3.1 Asset-backed securities 51 2.3.2 Infrastructures of credit derivatives markets 54 2.3.3 Risk rating agencies 56 2.3.4 Remuneration systems 57 2.3.5 Hedge funds and private equity 60 2.3.6 Accounting changes 62 2.3.7 Initiatives relating to short selling 63 2.3.8 Investor education 66 II Markets and issuers 69 3 Equity markets 71 3.1 General overview 71 3.2 Market size 73 3.2.1 Market capitalisation 73 3.2.2 Listed companies 75 3.3 Listings, issues and public offerings 75 3.4 Trading 76 3.4.1 Spot trading 76 3.4.2 Margin trading and securities lending 77 3.5 Takeover bids (OPAs) 78 7 3.6 Multilateral trading facilities 79 3.6.1 Latibex 79 3.6.2 The Alternative Stock Market (MAB) 80 3.7 Exchange-traded funds 80 4 Fixed-income markets 81 4.1 General Overview 81 4.2 Public debt 82 4.2.1 Primary market 82 4.2.2 Secondary market 82 4.3 Private fixed-income 84 4.3.1 Primary market 84 4.3.2 Secondary market 86 5 Registry, counterparties, clearing and settlement 89 5.1 Iberclear 89 5.1.1 Iberclear – CADE 89 5.1.2 Iberclear – SCLV 91 5.1.3 Technical enhancements Iberclear SCLV 92 5.1.4 European integration activities 93 5.2 MeffClear 95 6 Derivatives markets 97 6.1 General overview 97 6.2 MEFF 98 6.2.1 New developments in MEFF 99 6.3 Warrants and certificates 100 6.3.1 New developments in the segment of warrants, certificates and other items 100 6.3.2 Issues 100 6.3.3 Trading 101 6.4 Other financial contracts 101 6.5 Olive Oil Futures Market (MFAO) 102 III Financial institutions and investment services 103 7 Collective investment (UCITS) 105 7.1 Mutual funds 105 7.2 Investment companies (SICAVs) 107 7.3 Hedge funds 108 7.4 Real estate UCITS 109 7.5 Foreign UCITS marketed in Spain 110 7.6 UCITS management companies 110 7.7 UCITS depositories 112 8 Provision of investment services 113 8.1 Credit institutions 113 8.2 Investment services firms 114 8.2.1 Broker-dealers and brokers 114 8.2.2 Portfolio management companies 120 8.2.3 Financial advisory firms 122 9 Venture Capital Firms 123 9.1 Venture capital firms registered with the CNMV 123 9.2 Sector data 125 IV The regulation and supervision of securities markets 125 10 Issuers’ financial and corporate governance disclosures 127 10.1 Financial disclosures 127 8 10.1.1 Auditors’ reports and financial statements 127 10.1.2 Half-yearly and quarterly reporting 130 10.1.3 New regulatory developments 131 10.2 Information relating to significant shareholders, directors, executives and own shares (Royal Decrees on Transparency and Market Abuse) 132 10.3 Corporate governance 136 10.3.1 Most significant aspects of listed companies’ governance practices 136 10.3.2 Constitution and composition of audit committees 142 10.4 Significant events and other notifications received by the CNMV 142 11 Market supervision 147 11.1 Significant activities of the CNMV in the various markets 147 11.1.1 Equity markets 148 11.1.2 Fixed income 150 11.1.3 Derivative products 152 11.1.4 Registration, counterparty, clearing and settlement 154 11.2 Market Monitoring Unit 154 11.3 Supervision of takeover bids 156 12 Supervision of entities 159 12.1 Supervision of codes of conduct and organisational requirements in the provision
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