SPAIN
ANNEX
GUIDANCE NOTES ON ENTERING INTO REPOS INVOLVING SPANISH DEBT SECURITIES AND
AMENDMENTS TO THE OPERATING PROCEDURES
1. TRANSACTIONS INVOLVING SPANISH DEBT SECURITIES:
1.1 “Spanish Debt Securities” means (i) debt securities which are registered on the
Spanish Public Debt Market (“Mercado de Deuda Pública en Anotaciones”), and (ii) debt
securities (including corporate debt securities) listed in other Spanish markets which apply
the same rules and operative procedures as those of the Spanish Public Debt Market.
1.2 Transactions and margin transfers in Spanish Debt Securities will be subject to the
Spanish Public Debt Market regulations. These regulations contain rules and operative
procedures which will prevail over the terms of the GMRA to the extent that they arise as a
result of mandatory provisions dictated by the Spanish Ministry of Economy, the Bank of
Spain or any other duly qualified public entity.
2. SPANISH REPOS AND “SIMULTÁNEAS”
2.1 Parties may enter into two types of Spanish Public Debt Market transactions:
“operaciones con pacto de recompra” (Spanish Repos) and “simultáneas”.
2.2 Under a Spanish Repo the buyer of a given number of securities must sell back to
the seller, on the repurchase date. The securities subject to a Spanish Repo are identified by
CADE and must be sold back to the initial seller on the agreed date. The buyer is therefore
entitled to enter into subsequent repo transactions over the relevant securities provided that
the maturity date of the subsequent repo transactions is, at least, one day prior to the
maturity date of the first Spanish Repo.
2.3 Under a “simultánea”, the buyer of a given number of securities is entitled to sell
back to the seller, on the repurchase date, an equivalent number of securities; the buyer,
therefore, may enter into subsequent repo transactions over the relevant securities without
having to commit himself to repurchase any pre-identified securities in advance of the sell
back date of the “simultánea”.
2.4 Parties are advised to identify a Transaction (whether a repo or a buy/sell back
transaction) as either a Spanish Repo or a “simultánea” in the confirmation.
3. SUBSTITUTION
The Spanish Public Debt Market does not permit the transactions registered with it to be
varied and continue in effect. If the parties to a transaction wish to amend it, the
transaction must be cancelled and a new transaction must be entered into with new terms
and conditions. Therefore, the substitution provisions of the Operating Procedures are not
applicable to Transactions in Spanish Debt Securities.
4. PROPOSED AMENDMENTS TO OPERATING PROCEDURES
Therefore, the following amendment to the Operating Procedures is proposed in the case
the parties have agreed that:
(a) the Transactions to which the GMRA applies may include Transactions in respect
of which the Purchased Securities comprise or include Spanish Debt Securities
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which are Spanish Repos (“operaciones con pacto de recompra”) and
“Simultáneas”, as defined in the RDL 5/2005; and
(b) a transfer of Margin Securities may consist of or include Spanish Debt Securities:
(i) Paragraph 4.7 (Substitutions) shall not apply.
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