Account holders

Account Holders are financial institutions authorised to acquire and hold book-entry registered public debt in accounts opened on their own behalf in the Book-Entry System.

Para ser Titular de Cuenta a nombre propio en la Central de Anotaciones la entidad ha de contar con unos recursos propios de, al menos, 1,2 millones de euros(200 millones de pesetas) y pertenecer a alguna de las siguientes categorías de entidades:

  • 1. Banks
  • 2. Savings Banks
  • 3. Credit co-operatives
  • 4. Brokerage Companies
  • 5. Finance corporations
  • 6. Mortgage Market Regulation Funds
  • 7. Reciprocal Guarantee Companies
  • 8. Re-guarantee Companies
  • 9. Securities Investment and Money Market Funds and Companies
  • 10. Insurance Companies
  • 11. Credit institution deposit guarantee funds
  • 12. International financial organisations of which Spain is a member
  • 13. Central banks of countries belonging to the International Monetary Fund

Since February 1999 non-resident credit entities and investment services firms have also been permitted to hold securities accounts.

Other Account Holders are the Bank of Spain, the Instituto de Crédito Oficial and the Consorcio de Compensación de Seguros.

Those entities wishing to hold accounts on their own behalf in the Book-Entry System must submit their request in writing to the Bank of Spain. This written request must be signed by a representative whose signature binds the entity, with the accreditation of this status.

The Bank of Spain forwards received applications, with its own report attached, to the General Directorate of the Treasury and Financial Policy, which will then, if appropriate, grant Account Holder status in the Book-Entry System.

The Bank of Spain keeps a public record of Account Holders.

Account Holder status may be revoked by the Ministry of Economy and Finance at the proposal of the Bank of Spain, subject to a report from the CNMV (Securities and Exchange Commission) and a hearing with the interested party, under the following circumstances:
1. The level of activity throughout one year is zero or fails to meet the minimum established
2. When they fail to comply with account-holder eligibility conditions
3. In cases of temporary receivership or bankruptcy

The revocation of Account Holder status in the Book-Entry System signifies that, as of that time, the financial institution or intermediary may no longer carry out any operations other than those resulting in the definitive reduction of the balances it holds in the Book-Entry System.

Likewise, under exceptional circumstances, it may be decided to suspend or limit the type or amount of operations transactable by Account Holders during the time it takes for normal conditions to resume. Such measures must be notified by the Bank of Spain to the Ministry of Economy and Finance for their ratification or lifting by the Minister. Such ratification or lifting must be decided in two days.

The suspension of the Account Holder status in the Book-Entry System has the same force as revocation, except that the effect only lasts for the period specified in the corresponding resolution.

Account Holders in the Book-Entry System can transact in Government Debt represented by book entries exclusively on their own behalf.

Their Government Debt securities transactions must be ordered, effected and settled through the Bank of Spain Settlement Service (Servicio de Liquidación del Banco de España, SLBE).

The securities accounts opened in the Book-Entry System record movements arising from the subscription, redemption, transformation or trading of the Government Debt securities registered, and likewise reflect the constitution of pledges or similar which require the immobilisation of the balances held.

The cash amounts arising from such movements, and settlements of interests or any economic rights arising from ownership of the securities balances, shall be debited or credited in the Bank of Spain current accounts designated to this end by the Book-Entry System Account Holders.