stock exchanges

   When Spain had its own version of Big Bang in 1989 the official stockjobbers or agentes de cambio y bolsa, who controlled all trading, disappeared and were replaced by private brokers who used computerized systems. Trading can now be done via the so-called mercado continue (continuous computerized system) or physically in the stock exchanges of Madrid, Barcelona, Bilbao and Valencia, the first of these accounting for the bulk of the total trading. All four exchanges are connected by computer and most trading is done on-screen via a sophisticated system known as SIBE. Although with fewer than 400 listed companies the stock market in Spain is narrow compared with London or New York, the volume of trading is comparatively high, as has been profitability over the past ten years, with the index rising some 400 percent, well in excess of inflation. Few foreign companies are quoted, but among them are Volkswagen and Commerzbank. The Spanish stock exchange system is overseen by a national stock exchange commission (Comisión Nacional del Mercado de Valores—CNMV) set up in 1989, which tightened inspection procedures, imposed fines for irregularities and expunged the worst cases of insider dealing. This new more professional approach has encouraged foreigners to invest increasingly in the Spanish stock market.

   C. A. LONGHURST