Status of interest rate benchmark reform. Presentations at the 3rd Conference organised by the CNMV on 15 June 2021

On 15 June 2021, the CNMV organized the III Conference on the "Status of interest rate benchmark reform" in which the challenges possed by the forthcoming disappearance of Libor, the most widely used benchmark in the world, and its replacement by risk-free rates were highlighted. In the euro zone, the Euribor modernization process is consolidating and the transition to the risk-free benchmark, the €STR, is progressing reasonably. All these issues were analysed by a prominent group of interveners whose contributions are compiled in this publication, thus helping to disseminate the reforms and promote the adaptation of markets and their participants in an orderly manner and without risks to financial stability.

Analysis of the effect of restrictions on short selling Spanish shares between March and May 2020

This paper analyses what may have been the cost, in terms of market efficiency, of the restrictions on creating or increasing net short positions in more liquid securities traded on Spanish markets, which entered into force, partially, on 13 March 2020, and on an ongoing basis from 17 March until 18 May. It analyses the impact of the ban on some liquidity measures, on the return and intraday volatility of prices and on the credit risk of financial and non-financial issuers whose shares are listed on equities markets. These measures for Ibex-35 securities are compared with those of the German Dax 30 (a market where bans were not imposed).

The participation of the CNMV in macro-prudential policy

This document describes the Powers and instruments available to the CNMV in relation to financial stability and macro-prudential policy, in the context of the widespread movement promoted by the authorities of the G20 as a result of the last major financial crisis in order to avoid or contain the repetition of systemic crises. It also describes the legislative proposals that have led to the creation of the Spanish Macro-prudential Authority, AMCESFI, and the role of the CNMV in this context, addresing the approach to be used in future exploration of new macro-prudential policy instruments in the framework of markets beyond banking.

An overview of the hedge fund industry

The newness of the Spanish legal framework for hedge funds and concerns over their development called for a detailed study on the industry and its current challenges. This report discusses the rather thin regulations in force in other countries as well as the markets where these funds operate, in order to improve investors' awareness of these little known products and appraise their potential effects on securities markets.

Financial Stability Notes

The Financial Stability Note is a quarterly publication focused on financial stability conditions that analyzes the evolution of the large categories of financial risk and identifies the factors with the greatest potential to influence them. The Note includes a broad panel of indicators, including the stress indicator of the Spanish financial markets, which provides a real-time measurement of systemic risk in the Spanish financial system, and so-called color maps (also known as heat maps), that allow to easily visualize the evolution of different categories of risk and market segments. The Financial Stability Note, which began to be drawn up as an internal note in 2015, has become a publication of the CNMV since February 2017.

Securities clearing, settlement and registry systems in Europe. Current situation, ongoing initiatives, and recommendations

A discussion of the situation of securities clearing, settlement and registry in Spain, the scope of the Directive on Markets and Financial Instruments (MiFID) and the Target-2 project and how it is likely to impact the Spanish system.