About Latibex

General Information

Latibex is the only international market for Latin American securities. The market’s creation, in December 1999, was approved by the Spanish government and it is regulated by the current Spanish securities market regulation. Latibex is operated by the Spanish Exchange BME, a SIX company.

Latibex is an ideal way to channel European investment efficiently towards Latin America. European investors can buy and sell shares and securities in leading Latin American companies through a single market, with a single operating system for trading and settlement and a single currency, the euro. The market is based on the trading and settlement platform of the Spanish stock market, in such a way that the Latin American securities listed on Latibex are traded and settled like any other Spanish security.

Meanwhile, Latibex gives Latin American companies easy and efficient access to the European capital market. In short, it brings European investors close to one of the world’s most economically attractive regions, streamlining the operational and legal complexity and reducing risks. And this is all achieved in an environment of considerable information transparency.

What are the main features of Latibex?

Multilateral trading facility (MTF).

Trading and settlement platform in Europe of the main Latin American companies.

Currency: trading in euros.

Trading: though the Spanish electronic trading system (SIBE SMART).

Settlement: D+2 through book-entries.

Connected to the market of origin under agreements of Iberclear with Latin American custodians or a link entity.

Members or Brokers: currently, most members of the Spanish Stock Exchange operate in Latibex.

Specialists or Market Makers: brokers who facilitate constant bid and ask prices.

Indices:

  • FTSE Latibex All Share, which covers all the companies traded on Latibex.

  • FTSE Latibex Top, which covers the 15 most liquid securities traded on Latibex.

  • FTSE Latibex Brasil, which covers the most liquid securities from Brazil traded on Latibex.

* The indices are drawn up in conjunction with the FTSE, the company responsible for the indices of the Financial Times Group.

Transparent information: the listed companies provide the market with the same information and at the same time they supply to the regulatory entities of their markets of origin.

Investors

How to Invest in the Latibex Market?

What are the advantages of invest in Latibex?

What is the role of the Specialist or Market Maker?

Companies information

How to get listed on Latibex? 

Members and Associated Entities Information

How to carry out an exclusion through the Link Entity (LE)?

How to carry out an inclusion through the direct Iberclear-Central Depository connection in the country of origin?

How to carry out an inclusion through the direct Iberclear-Central Depository connection in the country of origin?

How to carry out an exclusion through the direct Iberclear-Central Depository connection in the country of origin?

Can a member of a Latin American stock exchange be a member of Latibex?


Investors

How to Invest in the Latibex Market?

The shares listed on Latibex are traded and settled in the same way as any other on the Spanish stock market: the same brokers provide electronic trading through SIBE, settlement is carried out in the same time periods and conditions and the same fees are charged.

The same shares are traded on Latibex as those issued in the country of origin.

What are the advantages of invest in Latibex?

Latibex, el mercado latinoamericano en euros, ofrece diversas ventajas para los inversores de las cuales podemos destacar:

  1. A single currency, the Euro: securities are traded in euros like the rest of securities traded on the Spanish stock market. This enables European investors to trade Latin American securities in their own currency, avoiding the complexity of having to manage different currencies. So far, this has only been possible in dollars and for certain companies.

  2. Attractive markets for investors: there are many companies in Latin America with high growth potential attracting lots of investors from all over the world. Blue Chips from Brazil, Mexico, Argentina and Peru are already listed on Latibex. Only a single market, a single trading system and a single currency (the euro), allowing European investors an easy and cheap access to them.

  3. Connection between markets through a Link entity or Central Depositories agreement: structure connection that ensure the shareholder’s rights in different circumstances like:

    • Receipt of dividends.
    • Capital increase events.
    • Trading of preferential acquisition rights.
    • Subscription rights over new shares.
    • Dissemination of the information provided by the company for the voting rights.
  4. A market maker access to the liquidity of the local market facilitating constant bid and ask prices: it is a broker, appointed by the company, who contribute to the liquidity of the market. Most of the companies listed on Latibex have a market maker, however, it is not a mandatory figure, therefore, could be possible that some companies don’t count with a market maker in the future. Please check the list of companies and their market makers here.

What is the role of the Specialist or Market Maker?

To contribute to the liquidity of the market facilitating constant bid and ask prices up to a certain volume and with competitive spreads for each stock. They arbitrage prices on Latibex by accessing to the local markets reducing volatility unrelated to the market. See Latibex Specialists list.

Companies information

How to get listed on Latibex?

The process of entering this Market has been designed to be simple, fast and cost-free for companies.

Prior requirements

  • The security must be listed previously on a Latin American Stock Exchange.
     
  • The Market Capitalization of the company must be greater than 300 million euros.
     
  • A commitment to send information in the same manner and at the same frequency as that despatched to regulating bodies in the country of origin.

There is a circular particularly dedicated to requirements applicable to the quotation of Latin American securities. (Circular 1/2018).

Mandatory Information

  • A formal application to include securities on the Latin American Securities Exchange (application form)
  • The granting of a contract with a "link entity" of your choice, and which can authorise the tying up of securities in the country of origin, include securities represented in the Spanish settlement and registration system and handle dividend payments, return of contributions, etc.

If an agreement exists between the Central Depositories, the contract may be replaced by an application to the Central Depository in the country of origin to use the connection the latter may have established with the Spanish Depository. Currently, these agreements exist for Argentina and Brazil.

  • All economic-financial information which may have been presented to the regulatory bodies in the country of origin in the previous financial year and in the months which have elapsed in the current year prior to presentation of the application. The information should not include any adaptation of accounting standards. It is thus sufficient to send a copy of available information for investors from Mexico, Brazil, Argentina, Peru etc.
    If the security is also quoted on other international Stock Exchanges, the information handed in to these markets' regulatory bodies (e.g. NYSE/ SEC, etc.) should be sent.
  • Copy of the current Company Bylaws.

Approval by the Latibex Board

Once all the documentation has been presented, the Latibex Board will study the security's application to be listed.

Judging by the experience of other companies with respect to the time involved in the listing authorization process, this period is very short: two weeks perhaps being sufficient. The delay is sometimes longer due to the need to seek the best date to start trading, which in practice involves the elaboration of a Communication Plan which basically involves the presentation of the company in Madrid to the Spanish financial community (the main Spanish institutional investors and media groups). This means that the company's relevant managers should be present at the ringing bell ceremony.

Instruments for Promoting Liquidity

Carrying out a public share offering is not a requirement as such in Latibex. However, the definition of a strategic plan to create liquidity and a sound base in the market is considered preferable. This plan may involve the availability of shares to lend or making a certain amount of securities available to offer as counterpart to a broker or Bank in Spain, in the initial period at least. A share placement among institutional investors would be a simple alternative and would serve to spread the security initially.

Even if no public offering (PO) is necessary it would still be the ideal solution to guarantee a good level of liquidity from the beginning.

Other points of interest

The listing and subsequent permanence of the company on the Latibex shall not involve any costs for the issuer with respect to this market or the Spanish Central Depository (Iberclear). The only cost to bear in mind, should this be the case, is that of the link entity, which can be negotiated.

Supplying information

The information that the company must supply to the Latibex shall be the same that is presented to Stock Exchanges and/or regulatory bodies in the markets where it is quoted. This information should be supplied on the same date as other markets and shall contain the same information.

The information can be grouped into two areas:

  • Periodical information
    • Annually and referring to the company's individual and consolidated financial statements: Annual accounts, Management Report and Auditor's Report for each financial year closed.
    • Quarterly: results and other relevant information.
  • Relevants Facts
    • It will be necessary to make public all information (both economic and legal) which may affect the quotation.

Members and Associated Entities Information

How to carry out an inclusion through the Link Entity (LE)?

The Associated Entity (AE), whose client wishes to carry out an inclusion on Latibex, should send instructions to their foreign custodian to deliver the shares free of charge to the LE's foreign custodian, indicating all the following information:

  • ISIN code and name of the security subject to inclusion.
  • Iberclear code of the AE to which the inclusion should be assigned in Spain.
  • Final Investor information (AE client).

It is advisable for the AE to inform that the LE of all previous information, as well as settlement instructions in the market of origin (transfer agent with their code at the Central Depository, account and name of the agent-final beneficiary- and the transfer dates).

How to carry out an exclusion through the Link Entity (LE)?

The Associated Entity (AE), whose client wishes to carry out an exclusion from Latibex, should send instructions to the LE indicating all the following information:

  • ISIN code and name of the securities subject to exclusion.
  • Number of shares to be included.
  • Registration references (RRs) of the shares to be excluded.
  • Iberclear code of the AE to which the exclusion sholud be assigned in Spain.
  • Final Investor Information (AE client).
  • Settlement instructions in the market of origin (transfer agent with their code at the Central Depository, account and name of the agent- final beneficiary).

The AE should additionally send instructions to their foreign custodian to accept the shares transfer free of charge from the LE's foreign custodian.

On receiving the confirmation of exclusion on the part of the Iberclear, the LE shall ask their foreign custodian to transfer the securities free of charge in accordance with the instructions received.

How to carry out an inclusion through the direct Iberclear-Central Depository connection in the country of origin?

The Associated Entity (AE), whose client wishes to be listed on the Latibex, should send instructions to their foreign custodian to deliver the shares free of charge to the account the Iberclear holds at the Central Depository of origin, indicating all the following information:

  • ISIN code and name of the security subject to inclusion.
  • Number of shares to be included.
  • Iberclear code of the AE to which the inclusion should be assigned in Spain.
  • Final Investor information (AE client).

On receiving confirmation from the Central Depository in the country of origin of having received the securities, the Iberclear shall transfer the securities to the AE according to the instructions received. The transfer shall be carried out immediately.

How to carry out an exclusion through the direct Iberclear-Central Depository connection in the country of origin?

The Associated Entity (AE), whose client wishes to be listed on the Latibex should send instructions to their foreign custodian to accept the shares free of charge from the account the Iberclear holds at the Central Depository in the country of origin. The AE shall transfer the securities free of charge, by means of a M36 message, to the code of the entity assigned by the Iberclear to the corresponding System of origin, indicating all the following information:

  • Date of the operation.
  • Cross and order reference.
  • ISIN Code and name of the security subject to exclusion.
  • Number of shares to be excluded.
  • Registration References (RRs) of the shares to be excluded.
  • Iberclear code of the AE to which the exclusion should be assigned in Spain.
  • Final investor information (AE client).
  • Settlement instructions in the market of origin (transfer agent with their code at the Central Depository, account and name of the agent - final beneficary).

The Iberclear shall ask the Central Depository in the country of origin to transfer the securities free of charge according to the instructions received.

Can a member of a Latin American stock exchange be a member of Latibex?

This information is only available in Spanish.

 
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