Financial Management
Classified in Law & Jurisprudence
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.(Continuacion Punto 2 hasta Cnmv).Clearing and settlement are fundamental
Processes in financial markets. After the trade is executed, the record is
Submitted to the clearing agency, which matches the buyer and seller record and
Confirms that the counterparts agree to the terms. The agency reports
Discrepancies to traders in case the reports do not match, who then try and
Resolve them. After the clearing process is performed, through settlement,
Agencies fulfil the delivery requirements of the securities object of a trade.
The settlement agency receives cash from buyers and securities from sellers and,
At the end of the process, gives the securities to the buyer and the cash to the
Seller. Agencies perform an important function in case a trader is not
Trustworthy or creditworthy.
CNMV: The CNMV is the agency responsible for monitoring and inspecting the
Spanish stock markets and the activity of all the agents involved in them. It
Was created by the Act 24/1988 on the Securities Markets.
The aim of the CNMV is to ensure the transparency of the Spanish securities
Markets, the correct formation of prices on these markets and the protection of
Investors by promoting disclosure of any information necessary in order to
Attain these ends.
Control functions of the CNMV
• Ensure the transparency of markets. • Enforce compliance with the
Standards of conduct by all participants involved in the securities
Markets.
• Make the necessary arrangements for the development and enforcement of
Adopted rules in implementing the law. • Monitor the correct formation of
Prices.
Supervisory functions of the CNMV • Examine the requirements for
Dealer-brokers or Brokers in order to become members of the stock exchanges.•
Verify the requirements to issue and admit securities to trading. • Receive
Information on acquisitions and transfers of shares in listed
Companies.
Advisory functions of the CNMV • Advise administration officials on the
Securities market. One of the functions of the CNMV is to advise the Government
And the Ministry of Finance on matters relating to the securities markets. •
Promote the dissemination of market information.
The basic organisational structure of the CNMV is illustrated above. The
CNMV is managed by the CNMV Board that consists of: • a president (appointed by
The Government) and a vice-president, • Secretary General of Treasury and
Financial Policy, • Deputy Governor of the Banco de España, and • three
Advisors
The CNMV Board shall exercise the powers assigned by law and assigned to it
By the Government or the Ministry of Economy and Competitiveness. The
Organization also includes Advisory Committee, Executive Committee and three
Director Generals
The functions of the Board are the following: - To approve the Circular to
Which Article 15 of the Securities Markets Act refers.- To approve the
Regulations of the internal regime of the CNMV. - To approve the draft budget of
The Commission. - To constitute the Executive Committee