Incorporated into the System will be all the securities represented through book entries listed for trading in the Securities Markets, in the AIAF Fixed Income Market and in the Book-Entry Public Debt Market, as well as securities listed for trading in other official secondary markets or other regulated markets and multilateral trading facilities when their governing bodies appoint IBERCLEAR as the entity responsible for the book-entry register.
Incorporated into the system will be foreign securities, either through accounts opened by IBERCLEAR in other central securities depositaries or clearing and settlement systems, or through an entity who acts as a link between the source country of the security and the Spanish registration system.
As an exception, it may also include securities represented through physical certificates that will be subject to blocking in a depositary appointed for that purpose.
Finally, IBERCLEAR may keep the register of securities not listed for trading in official secondary markets, regulated markets or multilateral trading systems in the circumstances in which this is so determined by the issuer.
IBERCLEAR will apply the same registration system to all securities in the System, including foreign securities, without this determining a change in the representation system that corresponds to them in accordance with their law of origin.
The securities incorporated into the System will be identified by their security code (ISIN code). The amount of securities or the total face amount of each security code registered in the System will be known as a Control Sum. Generally, equity securities will be recorded depending on the number of securities and those of fixed income depending on the face amount.
The book-entry register is a double-rung register. The keeping of the General Register, the first rung, will correspond to IBERCLEAR and the keeping of the Second-tier Register, the second rung, will correspond to its settlement participants.
The securities balances are registered and the nominal amount or number of securities entered in the corresponding accounts, according to the type of security. Generally, the book entries corresponding to equity securities will be recorded depending on the number of securities and those of fixed income depending on the face amount.
The structure of the General Register is as follows for each participant entity and ISIN code:
a) Proprietary accounts of the entities: IBERCLEAR will hold one or more accounts which reflect the balance held by the entity itself.
The settlement participants may also have specific proprietary accounts in the General Register:
b) General third party accounts: IBERCLEAR will hold one or more accounts which reflect the global balance of the securities that the authorised entities have registered on behalf of their third parties.
c) Individual accounts: Accounts open on behalf of an owner, be it a natural or legal person.
The keeping of the account may be performed directly (hereinafter, directly kept individual accounts) or indirectly (hereinafter, individual accounts)
The owners of the individual accounts may also keep specific individual accounts in the General Register.These accounts may be directly or indirectly kept:
d) Financial intermediary special accounts: the financial intermediaries who use the optional settlement procedure of orders by financial intermediaries will keep at least one individual account in the General Register on behalf of the financial intermediary, whose sole purpose will be to develop this procedure. The keeping of the account will always be indirect.
e) Omnibus accounts opened by a CSD in IBERCLEAR: For each CSD with which it signs an agreement and with reference to each security code, IBERCLEAR will hold one or more accounts which reflect the global balance of the securities that the CSD's have registered on behalf of their settlement participants.
Settlement participants will be identified by one or more of their 11-character BIC codes.
The BIC11 codes must be registered and operative. Each BIC11 code that is registered must be associated with at least one cash account, in accordance with the provisions of the "Settlement Procedure" and some technical measures, propitiatory or external.
Segregable accounts are those accounts that the entities may break down into sub-positions.
The segregable accounts are as follows:
The segregable accounts open in the General Register will be broken down into sub-positions of securities that the entities can identify in their settlement instructions (SI) or settlement restrictions (SR).
The types of sub-positions into which the accounts can be broken down can be classified into two large groups, depending on who manages the movements between sub-positions:
a) Types of sub-positions managed by the settlement participant: available, earmarking, earmarking for auto-collateralisation.
b) Types of sub-positions not managed by the settlement participant:
As well as the above types of sub-positions, segregable accounts may be broken down into the CoSD (COSP), blocked (BLO1) and earmarking (IB01, ECI1 and ECI2) sub-positions. These types of sub-positions may only be managed by the System.
Participants authorised to keep the Detailed Register will be the parties entrusted with the accounting in the accounts of each security holder, which will express at all times the total balance of securities they own, in each class of security.
Those accounts will be identified by a Securities Account Code (CCV), comprising 20 numerical characters structured to provide a unique, universal identifier for each detailed register account.
Entities must keep the detailed register up to date at all times, by entering every single trade performed by the entities with third parties, or on the orders of the latter, that impacts the ownership or availability of the securities, including freezes on securities affected by rights in rem or other liens.